BEIJING - Chinese Premier Li Keqiang has stressed the role of innovation in economic transformation and upgrading.

During an inspection tour to north China's Shanxi province on Monday and Tuesday, Li visited a base for entrepreneurship and innovation and applauded its services to small and micro-sized enterprises and its model that integrates research and development with production.

The base offers a platform for innovation of small companies, and can also help create considerable economic and social returns, Li said.

"Integrating creativity with the market will form strong new impetus and make a huge contribution to economic transformation and upgrading," the premier said.

While visiting a coal mine owned by Lu'an Group, Li said that reducing production capacity will make way for quality and advanced capacity.

"Human resources are the most valuable treasure," Li said, encouraging Lu'an Group to create more jobs by developing non-coal industries and helping former workers start their own businesses.

Former workers laid-off due to reduced capacity might have been a burden for previous employers, but they will become required talent in new companies, the premier said.

Companies of all sizes can stimulate the enthusiasm and creativity of employees through encouraging mass entrepreneurship and innovation, an approach that will raise their core competitiveness, according to Li.

He added that craftsmen should pass on their skills to apprentices to make Chinese-made products competitive in terms of both price and quality.

Li also went to a village in Shanxi to visit rural residents living in poverty and learn about medical services there.