Chinese enterprises need to become more innovative to secure their competitive edge in the global market, entrepreneurs and economists attending the 2013 Boao Forum for Asia have argued.

Speaking at a sub-forum ahead of the BFA, Edmund Phelps, a Nobel Prize-winning American economist and professor with Columbia University, acknowledged China's increased innovation in recent years, but insisted the government and enterprises need to further encourage innovative minds.

"Chinese enterprises have grown from followers to become leaders. Only through self-upgrading and good corporate culture can long-term sound development be ensured," added Chen Feng, president of Hainan Airlines, China's fourth-largest airline.

Entrepreneurs and economists attending the sub-forum agreed that China is spending more and more on scientific research, but they were concerned money has not been used in the most effective ways. "A considerable amount goes on meals or similar expenditure," they noted.

Domestic and foreign attendees listed "a scanty few" successes in Chinese companies' reach overseas, and "commonly seen" failures in this regard.

Corporate internationalization requires professionals with a global vision, diversified products, individualized services and market localization, said Zhang Yaqin, vice president of the Microsoft Corporation.

The three-day BFA, under the theme of "Asia Seeking Development for All: Restructuring, Responsibility and Cooperation," kicked off on Saturday in Boao, a coastal town in South China's Hainan province. It will be attended by 1,477 representatives from 43 countries and regions.