Microsoft founder Bill Gates addresses a session at the World Economic Forum (WEF) in Davos January 24, 2008. [Photo: Reuters]

Microsoft's Chairman Bill Gates called on Thursday for a revision of capitalism to spur technological innovation and help reduce poverty in the world.

Promoting a new notion of "creative capitalism," Gates said a new system is needed for the business community to work in partnership with government and nonprofit organizations to help ease inequity in the world.

"We have to find a way to make the aspects of capitalism that serve wealthier people serve poorer people as well," Gates told a session of the World Economic Forum annual meeting.

Gates said there are still some 2.5 billion impoverished people in the world. Many people cannot get enough food, drinking water or electricity which rich people often take for granted.

"The world is getting better, but it's not getting better fast enough, and it's not getting better for everyone," he said.

He said foundations and other nonprofit groups often lack the money to care for all of those not benefiting from global markets.

"If we're going to find a sustainable way to help those who can 't pay, we have to use self-interest and caring - capitalism and philanthropy - to direct attention to people who have been left behind," he said.

Gates said governments should also set policies and disburse funds to create financial incentives for businesses to improve the lives of the poor.

"Such a system would have a twin mission: making profits and also improving lives for those who don't fully benefit from market forces," he said.