Innovation?
What innovations has China produced since the times of Marco Polo? So far they are just good (well, make that cheap) in copying stuff.
They didn't make the step from Xerox to homegrown innovation like the Japanese and Koreans did at one time, and I don't see that they will in the near future.
Working every day with chinese technology "experts" I am less than impressed by the so called chinese juggernaut. There is a reason they churn out "engineers" in such large numbers and in so little time...
I think the established innovation centers still can sleep soundly at night and let all the members of the alledgedly biggest internet population farm Gold for WoW as much as they please.