Nobel Prize Laureate Edmund Phelps tells Chinese innovators to "have fun!"

When discussing the entrepreneurship and innovation boom sweeping across China, economist Edmund Phelps said that start-ups should enjoy the process and not be afraid of failure.

At a conference on Monday in Beijing, the Nobel Prize laureate said that innovators should set their sights beyond money and success, and grasp the excitement and delight of uncertainty.

He said innovation is inherently risky but innovators should enjoy failure.

"The Wright brothers once said that the happiest day they had in life was the day when everything they tried failed. You see, innovation is fun, even if it's unsuccessful."

The U.S.-based Columbia University professor was awarded the 2006 Nobel Prize in economics. His new book "Mass Flourishing" (2013) focuses on grassroots innovation.

"I admire the younger generation's willingness to innovate. You do not see that much enthusiasm in other parts of the world," he said.

China has a culture that encourages innovation and the government is actively supporting innovation at the grassroots level, which is a blessing for young innovators, he noted.

Regarding the choice by many Chinese to focus on developing Internet-based products, he suggested that other roads were worth exploring, such as health care and education. Endi