Moscow,President Vladimir Putin Friday envisioned a new development strategy, emphasising greater use of "human potential" as the only way for Russia's progress.

Putin, who enjoys widespread popularity in the country, will step down after eight years in office following the March 2 presidential elections.

Admitting that Russia had so far failed to get out of an 'inert' dependence on natural resources, the president described what he called "innovative development" as the only alternative to dependence on natural resources.

"The strategy of innovative development...relies on human potential and the effective use of knowledge and individual skills," Putin said while speaking at the state council.

He also urged the use of the experience and resources accumulated over the past eight years of his presidency to launch Russia into a brand new stage of development.

The president called for a reduction in the state-controlled sector of the economy and urged more private investment incentives.

He also said Russia should increase its labour productivity four-fold by 2020.

"A four-fold growth, at least, in this indicator should be reached in core sectors within 12 years," the president said.

The Russian leader also said that Russia's GDP could double by late 2009 from the year 2000, provided its annual growth is kept between 7 and 8 percent.

According to Russia's Statistics Service, the country's GDP growth reached 8.1 percent last year.

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