The great British master watchmaker George Daniels first developed a solution to the problem in 1976, but it was not put into regular production until Omega recognised its importance and developed the Co-Axial escapement.

This system reduces sliding friction, compared with the lever escapement, and ensures greater accuracy over time. The free sprung balance in this escapement helps to reduce the sensitivity of the watch to shock. Omega president Stephen Urquhart said that soon the Co-Axial would be used in every watch in Omega's collection.

This year, Omega introduced a new De Ville Chronoscope split seconds chronograph. It has an automatic co-axial movement, and a gold or steel case with a clear sapphire case-back.

Because the main European supplier of basic movements, or ebauches, and other key parts of mechanical watch movements may restrict supplies to other companies in the future, many independents have been anxious to protect their independence by developing their own movements and producing them in-house.

Until now, many companies have bought a basic movement and assembled it, added their own touches or complications, regulated, decorated and polished the finished movement in their own workshops before fitting it in its case.

Now, however, many brands are keen to become a manufacture, with the ability and resources to make their own movements in-house.

This year Patek Philippe announced that it was beginning to make watches fitted with a silicon balance spring (hairspring), and in Basel the 5350 Annual Calendar Advanced Research special edition, which uses this technology, attracted considerable attention.

All components made from silicon are produced in university labs in Switzerland. Nivarox, a part of the Swatch Group that produces components for members of the group and for other companies, is building a new plant that will specialise in making silicon escape wheels, balance springs and even levers.

Breguet is the flagship in the Swatch Group and this year Nicolas Hayek, president of the company and chairman of the Swatch Group, is proud that Breguet is beginning to make extensive use of silicon and will be the first company to benefit from parts made by the new Nivarox plant when it goes into production in two years.

Last year, Breguet surprised the watch world with the introduction of an unusual watch called the Tradition, whose internal workings were clearly on display. It has been impossible to meet the demand for this watch and so this year another version of the Tradition has been introduced, featuring a retrograde seconds display in place of a power reserve indicator. There are no limited editions - only production capacity limits the supply.

Another important development is the Classique 5197, a stylish design that conceals the important new twin barrel Calibre 591A, which is the first movement ever to include an escape wheel, lever and balance wheel all made of silicon. Because silicon is non-magnetic, it is not affected by magnetic fields or impulses and the movement requires no lubrication.

The barleycorn pattern on the dial, with staggered circles, alludes to the shape of the balance spring and the pattern is engraved by hand using a traditional rose engine. Since 1795, every Breguet watch has had the secret Breguet signature on the dial. In the Classique 5197, it is also featured on the silicon lever and escape wheel, which are visible through the transparent case back.

Breguet continues to enjoy a strong following in Hong Kong, not only among watch collectors but also others who appreciate fine watches. A spokesman said the Tradition had helped to open the eyes of a new generation of collectors.

This year Patek Philippe launched its first self-winding wrist chronograph developed and manufactured in-house. It is being featured initially in a first edition in a classic round platinum case. Known simply as the 5960P, its dial has all the classical, refined elegance that is now expected from this respected firm (see page 9).

Other important new models from Patek Philippe include an ultra-thin perpetual calendar in a slightly enlarged case, and a new Annual Calendar watch with twin in-line day and month apertures.

Last year, Rado launched the V10K which, with its diamond-coated case, is the world's hardest watch. This year, the collection has been enhanced by the introduction of coloured straps, and a model with diamonds on the dial. The V10K range is waterproof and dustproof; the time is altered by a magnetic key on the case back.

In response to strong demand, TAG Heuer has launched a tachymetre version of its SLR in a large 44mm case - the largest TAG Heuer chronograph. It is available only with a black dial and strap. The TAG Heuer SLR launched in 2004 was only available to people who bought the Mercedes Benz car.