During its 60 years' history, Shanghai Branch has achieved great success in science advance. I still can feel the excitement when Shanghai scientists have synthesized the world’s first crystallized bovine insulin. In recent years, the sequencing of No. 4 chromosome of rice, the accompanying satellite of Chinese Shenzhou, all successes injected enthusiasm once again to all my colleagues of science and me. I may even sense the innovative spirit of all the scientists behind these shining results.

Innovation generates creativity, and as I assume, is the resource of all the successes obtained. In 1998, Chinese Academy of Sciences advocated 'Knowledge Innovation Project' with the aim of pouring innovation into the research system in the Academy. In the past, the academic research was motivated by the random innovative idea of some individual scientists. Now we keen to organize a systematic innovation by making the whole system innovative. In this way, the random initiatives could be induced to the way we want - benefiting the national economy.

Chinese Academy of Sciences has long been recognized by the world's academic circle. However, it seemed an ivory tower high above to the public, especially to the industries. By 'Knowledge Innovation Project', we would like to divide our research aims into two categories: theoretical and practical. For theoretical part, like astronomy, mathematics, physics and neurosciences, the input is ensured to keep their academic level high above as they are the basis of the applied research. For practical part, like drug discovery, we introduce the market mechanism, like venture capitals, so as to bind scientists more closely to the industry, so that the innovation will naturally be market-oriented.

The aim to thrive the national and local economy has been acknowledged by the government. We have made cooperation with local Shanghai Municipality on Synchrotron Radiation Facility and Chenshan Botanical Gardens. Moreover, the Shanghai Pudong Science and Technology Park is under construction. I hope that with these infrastructures co-funded by the Chinese Academy of Sciences and the local government and with the innovation we pursued, Shanghai Branch and all its affiliated institutes could work out a brighter future.