China's western region has become a growth engine for the country's slowing economy, but experts warn it has an unscientific industrial structure and a shortage of innovation.

In 2012, the region's gross domestic product increased by 12.48 percent year-on-year, much faster than in the eastern and central parts of the country and 2.16 percent more than the national average, according to a report on the development of the western region released on Sunday.

The report also said the GDP of the western region accounted for 19.75 percent of the nation's total, an increase of 0.38 percent from a year earlier, helping the region further narrow its gap with the eastern region in economic development.

Experts warned, however, that despite achievements in the region's economic growth and improvements in local education, environment and people's livelihoods after more than 10 years' of development, the region is still relatively undeveloped .

"The unreasonable industrial structure, shortage of innovation and international talent and a lower level of marketing are major problems that need to be solved soon," said Yao Huiqin, deputy director of the Center for Studies of China's Western Economic Development at Northeast University.

Yao said the western region is still in an accelerating period of industrialization. Compared with the eastern and central regions, the economy of the west is still highly dependent on investment rather than updated technology and improvements in market competition.

"Secondary industries - such as mining, power, manufacturing and construction - still account for more than half of the GDP of the west, while the development of the service industries remains limited at 36.5 percent," she said.