BEIJING, March 28 -- A report released on Friday placed China 19th in a ranking of 40 major countries based on their innovative ability in 2013.

China climbs one place in the annual report by the Chinese Academy of Science and Technology for Development, which attributed the improvement to higher knowledge-generating capability and better environment for innovation.

The United States continued to be the most creative country.

According to the report, in 2012, 1.98 percent of China's GDP was used in research and development (R&D), exceeding the 1.97-percent average for 28 European Union countries. The figure was estimated to be 2.09 percent in 2013.

Chinese enterprises have also achieved great progress, with the index of enterprise innovation 2.2 times higher than in 2000, the report said.

Amid progresses, China still faces fierce competition and needs sustained efforts to increase its creative ability, it warned, however.

China's investment in R&D is still dwarfed by other major powers. The United States spent more on R&D in the past two years than China did in the last 20.