This paper aims to push on the transforming viewpoint, giving priority to the creation of regional innovative milieu from both above and below, especilly from below. The paper emphasizes local embeddedness with reference to the Zhong'guancun case in Beijing. It illustrates that the weaknesses in local embedding exposes local economies to volatile world competition. The paper pinpoints the necessity for China to rest its development of High- and New- tech Industrial Development Zones on self-sustained innovativeness, and highlights the difficulties encountered in such a process.