China shaping up as 'even stronger powerhouse'

"IP is located in a larger innovation ecosystem. It's not alone," he said, citing R&D expenditure, the strength in scientific institutions, investment in education and business sophistications as parts of the system. China has invested heavily in an educated work force and other elements of the innovation system, he added.

"From low levels of R&D spending in the early 1990s, China emerged as the second-largest R&D spender in the world in 2009," he said, adding that the country is a leading investor in clean energy.

Local provincial economies, especially from China's western region, are expected to benefit directly from the Belt and Road Initiative proposed by the Chinese government, Gurry said.

"This promises to integrate more closely the economy in the western provinces with neighboring countries in Central and South Asia, leading to an increase in demand for international protection of IP rights by enterprises," he said.

"Innovation is a long-term strategy," he said. "It's something that requires many, many different inputs and elements. You can't build innovation capacity overnight. China has succeeded in being able to speed up that process."