The report of Global Entrepreneurship Monitor (GEM) lays its research objective on revealing the re- lation between innovation and entrepreneurship and economical development

and it divides economy into three types: factor-driven economies

efficiency-driven economies and innovation-driven economies

and makes a comparative study of each type of economies. Based on this study

it can be seen that China is in the stage of transformation from efficiency-driven economies (mainly large enterprises) to innovation-driven economies (ex- panding service departments). Innovation and entrepreneurship play important roles in both efficiency-driven e- conomies and innovation-driven economies

and they have deep effects on transformation of economies. Specifi- cally

it is important to focus on the development of creative thinking

improve the public's practical capability of innovation and entrepreneurship

perfect commercial environment

speed up implementation of innovation and entrepreneurship policies

strengthen construction of educational system of innovation and entrepreneurship

and accelerate transformation of research and development achievements.