What Are the Different Types of Economic Growth Strategies?

Economic growth strategy refers to the economic strategy of a country aimed at the growth of the actual level of GDP or per capita GDP, or the increase of personal income.

Economic growth strategy

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Economic growth strategy refers to the economic strategy of a country aimed at the growth of the actual level of GDP or per capita GDP, or the increase of personal income.

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Economic growth strategy

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Economic strategy

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Research on the Nature and Causes of National Wealth

Content

Think development is equivalent to economic growth

Economic growth strategy is an important branch of western economics that has achieved considerable development after the Second World War. It mainly studies the economic growth of developed countries in the world. Economic growth theory is the theoretical basis for economic growth strategies formulated by economically developed countries. It has a long history and can be traced back to Adam Smith. In his "Study on the Nature and Causes of National Wealth", Smith pointed out that the factors of economic growth were determined by the increase in labor productivity and capital accumulation caused by the division of specialized labor. Then, David Ricardo emphasized the role of international trade in economic growth and put forward the famous comparative cost theory. Later, there was the theory of the impact of population growth, capital accumulation and technological progress on economic growth proposed by Mueller. The core idea of modern economic growth theory comes directly from Keynes. He put forward the theory of "effective demand" in his famous book "General Theory of Employment, Interest, and Money". He believed that the occurrence of unemployment and economic crisis was caused by insufficient effective demand, so he put forward the idea of comprehensive national intervention in economic production. ^[1]

The main contents of the economic growth strategy are: ^[2]

Since the Industrial Revolution, many countries around the world have pursued economic growth strategies. Especially after World War II, various countries have highlighted their economic growth strategies. Their characteristics are that with the advancement of science and technology, people continue to increase the breadth and depth of resource development and utilization. The rapid consumption of resources supports the rapid growth of GDP or per capita GDP. increase. For example, from 1963 to 1968, the average growth rate of the world's total industrial output was 7% per year, and the per capita growth rate was 5%. There are many benefits to people from economic growth strategies: ^[3]

To achieve economic growth strategies, developed countries have adopted three major strategic measures. ^[4]

The economic growth strategy has caused a series of social problems while continuously improving the economic level and increasing per capita income: ^[3]

1. Establishing a knowledge-based value-added approach ^[5]

The knowledge-based value-added method is an important way for Chinese enterprises to improve their value-added capabilities, and it is also the key for the Chinese economy to get rid of the passive situation and become active in the international knowledge division of labor system. Through the following series of links to improve the value-added capabilities of Chinese enterprises and raise the level of China's economic development, this knowledge-based economic growth mode can be achieved:

(1) Developing new industries with high added value.

Actively cultivate and develop high value-added industries with special advantages, enter high-value-added production fields worldwide, and improve international competitiveness. At present, China's market share in the high-tech international market is still low. Our main advantage is in the aerospace and aviation fields. China also needs to cultivate new high value-added industries and form a true competitive advantage. China's software industry, traditional medicine industry and other fields are areas with potential for development, but the key issue is that Chinese companies must be in high value-added areas, rather than simply producing and processing, so that they can fully utilize China's existing resources , Effectively improve the value-added ability.

(2) Strive to develop high value-added products.

In a sense, the growth mode of the knowledge economy provides opportunities for all industries to produce high value-added products, even in the general manufacturing and retail industries. The key lies in improving the application of creative ideas in products, increasing the knowledge content of the product itself, and satisfying consumers' intellectual and spiritual needs by increasing the knowledge content. For example, Taiwanese toy companies are constantly improving their competitiveness in the world market with world-class creativity and first-class quality. Chinese mainland enterprises should also make a difference in creative production. In this area, what companies need is rich market knowledge. With the continuous maturity of Chinese consumers and the opening up of China, the leading level of the Chinese market is also increasing. The key issue is whether the company has the motivation and ability to innovate. With our creativity and infinite intelligence, it is an important way to increase the value-added ability of Chinese enterprises by discovering the market, creating markets, and winning consumers earlier than competitors.

(3) Improve the value-added ability of existing products.

Improving the value-added ability of existing products is an important means to make full use of the existing production capacity, while making full use of knowledge, working to improve services, improve quality and expand functions, you can effectively increase the value-added ability of existing products, thereby promoting economic performance Improvement.

Effectively utilize knowledge, improve services, and realize value-added. Sales services, including pre-sales, sales and after-sales services, are a process of value added, but effective sales services are based on a wealth of market knowledge. A retailer in Japan actively sent a large number of employees with rich market knowledge and maintenance experience to customers' homes to provide them with overhaul services for all home appliances, regardless of whether they are selling products or not. In after-sales service, fully understand customer needs, collect information, and provide customers with purchase consulting services. Although the price of this company is higher than that of its peers, due to the thoughtful and scientific service provided to its customers, its sales profit and customer satisfaction rate are higher than those of its peers. This is the added value of knowledge-based quality services. The company's ability to increase the value of its services stems from its business philosophy of having the right knowledge and customer service. In the software industry, the current popular practice is user customization, bundled sales, and long-term technical support and maintenance services. User customization is a service with strong value-added capabilities. The company's in-depth understanding of user needs has improved the degree of product satisfaction to customer personalized needs. Therefore, this service improvement is also based on the company's effective identification of user needs. China's market is quite different, and the market's demand for diversified consumption is also rising. For example, in China's agricultural intelligent system, through the introduction of new specialized knowledge in sales services, more consideration of the differences in the local agricultural operating environment and the effective response to the local market can further increase the value-added ability of its products.

Rely on knowledge to improve quality and enhance product value-added capabilities. The value-added ability of a product depends on how well the product meets consumer needs, as well as the actual utility of the product. Therefore, through the improvement of technology, the use of advanced manufacturing technology, and the cultivation of quality awareness to improve product performance, thereby increasing consumer satisfaction, at the same time, we must pay full attention to product quality improvement and reputation training. In the growth mode of the knowledge economy, market value is the standard for measuring the company and its products. In the composition of the market value, the operating assets of the company, such as brand, reputation, customer loyalty, and marketing network are important to realize market value basis. Whether it is performance improvement or quality improvement, it depends on the effective application of knowledge by the enterprise.

Activate innovation knowledge, expand product functions, and achieve value enhancement. The function expansion of existing products is an effective means of increasing value, and digging out new functions through creative labor is an important way of function expansion. For example, Yang Jingdou paintings in the Forbidden City of Beijing used creativity to increase the value content of various beans, and the cooperation between Nanjing Peking Opera staff and towel manufacturers that were previously in a loss, the value content of ordinary towels increased rapidly because of the Beijing Opera mask . Therefore, the expansion of product functions requires constantly breaking the existing product function positioning and constantly exploring new uses. In the process of function expansion, the key is the generation and use of creative ideas. Only an organization that can promote creative ideas can get the opportunity of function expansion. In some cases, the expansion of new features comes from accidental discoveries. For example, tanshinone is used in the treatment of acne, which is a more valuable extension of its original function, which came from the unexpected discovery of a researcher. The researcher was suffering from acne and tried tanshinone in anxiety, so he had a more valuable function in this market. In the field of biopharmaceuticals, innovation comes from countless experiments and seemingly accidental discoveries, but in fact, these accidental discoveries can be transformed into marketable products and services because companies have formed a culture of fostering innovation and encouraging innovation. Discoveries and unexpected results can be translated into market value.

Whether it is to improve the knowledge content of the product, improve the service of the product, improve the quality of the product, or expand the function of the product, in the process of increasing the value content of the existing product, the most important thing is to strengthen the innovation consciousness of the enterprise and improve its innovation ability Attach importance to the knowledge management of the enterprise.

Looking at all kinds of value-added methods based on knowledge, the core is to make full use of knowledge resources, increase the contribution of knowledge to economic growth, improve the level of economic development by improving the structure of input factors, and ultimately achieve high levels of economic growth . Improving the value-added ability through knowledge production and effective application, so that Chinese enterprises can improve their international competitiveness, and ultimately improve the quality and level of the micro-level of China's economic development. This is one of the most important development strategies for knowledge-intensive economic growth.

2. Knowledge innovation method of network structure

In knowledge-intensive economic growth, knowledge innovation is the foundation. Different from the past, knowledge innovation in the era of knowledge economy has the characteristics of network structure. The innovation activities of this network structure should follow the following basic principles.

(1) Select, focus on development

In the new economic growth model, the choice of technology is of great significance. Because the knowledge intensive growth mode has the characteristics of network structure, it is a non-linear growth mode. The leading role of key technologies in the industry and its contribution to economic growth, such as the role of chip technology and network technology in the technological innovation and economic development of developed countries, cannot be replaced by other general technologies. Because of these characteristics of key technologies, choosing the right technology development direction and screening out key technologies through market methods are important prerequisites to ensure the optimization of technology development systems. In developing countries, this kind of selective and focused innovation strategy is even more important. This emphasis on key technologies and the emphasis on technology choices is actually the requirement of the network-based, non-linear development law of technological innovation activities. The sharp contrast between the success of the United States in information technology and the relative backwardness of Japan's information technology field further illustrates the significance of key technologies for economic development. Therefore, in a certain sense, the multi-technical and multi-headed innovation methods in the traditional economic growth era do not meet the needs of knowledge-intensive growth methods, and they do not meet the development trend of modern knowledge innovation activities. Therefore, selective and focused development is one of the requirements for new network-based innovation activities. In the process of technology selection, the role of the market mechanism should be emphasized, and the role of resource allocation in the market mechanism should be brought into full play, including the role of innovation resources. At the same time, appropriate use of government policies to guide and organize such network structure innovation activities and corresponding technology choices.

(2) Effective diffusion with points

The effective development of network-type innovation activities must follow the principle of point-to-point and effective diffusion. This is mainly because technological breakthroughs have network characteristics. On the one hand, technological breakthroughs mainly occur at the interface of various technologies, and are achieved in the connection and integration between different technologies. On the other hand, breakthroughs in key technologies often lead to rapid changes in related technologies, and the penetration of innovative technologies continues to increase. Corresponding to this network method of technological innovation is the increasing degree of correlation between industries. For example, driven by chip technology and network technology, the combination of computer technology and communication technology (C & C) is getting higher and higher. Information and communication technology has become a broader and more powerful field. The network characteristics of technological innovation require innovative activities to be carried out in a point-and-face and network cooperation manner, that is, to grasp key technical nodes and their links with other technologies, and to promote the general development of technology through network-based cooperation. Increase in the value-added capacity of the overall economic system.

Through effective diffusion from point to surface, innovation realizes the return on scale of knowledge investment and reduces the duplication of knowledge production. The diffusion of knowledge is an important way to commercialize knowledge innovation activities. The effective use of key and advanced technologies in various industries is the basic condition for ensuring the sustainable development of this innovative method, and it is also an effective way to enhance the role of innovation in promoting economic development. Therefore, in the breakthrough of key points and the innovation of point-and-point plane, point-and-point plane and effective diffusion are complementary and indispensable to key development. The effective diffusion of key and key technologies is a condition for the sustainable development of this innovative method of key development. Only through technological diffusion and improving the general technical level of various industries can the coordination of technological development and economic growth be achieved, and the development of key technologies Provide further material support, while achieving the goals of key development.

(3) Network cooperation and collaborative innovation

For the innovation of the entire economic system, the ultimate effect of innovation depends on the coordinated development of various elements of the system. This synergy includes not only collaboration and cooperation among various technologies and industries, but also among various innovation entities. At the same time, in the economic system, effective innovation should also ensure the coordinated development of various factors in the innovation environment, such as information infrastructure, scientific research foundation, knowledge infrastructure, innovation culture and atmosphere, and the cultivation and incentive of innovative human resources. Synergistic development between various factors. The reason why the United States' innovation system is world-class so far is not only because of its highly developed subsystems, but also because of the coordination between them. The development of cooperative networks and collaboration between organizations is conducive to improving the efficiency of innovation activities, which is even more important for China, where innovation resources are relatively limited at this stage. The important way to promote cooperation is to give full play to the role of the market and ensure the free flow of innovative resources and knowledge. Only free flow can enable knowledge to effectively integrate and allocate opportunities, and cooperation between knowledge-based organizations can be more effective. .

For the promotion of cooperation and synergy in innovation activities, the government's main role is to create a good environment for innovation and ensure effective interaction and association between subsystems. An important point of science and technology policies in countries such as Europe and the United States is to establish extensive cooperative relations between governments, universities and enterprises, and to use various resources efficiently. The United States not only emphasizes cooperation between domestic innovation entities, provides various support for industry-university-research cooperation, but also basically maintains a positive support attitude for international science and technology and R & D cooperation. Currently, the US National Innovation Policy is still working to improve synergy between systems. Germany, however, is working hard to develop a "competence center", a network system with huge potential for innovation and knowledge. Through the cooperation of the government, industry and science, and through the integration of universities, various research institutions and enterprises, including small and medium enterprises, Incorporate into the competence center to promote the networking of technology and improve the competitiveness of German companies.

For China, it is important to improve the significance of each subsystem, but more importantly or more urgently, how to promote the cooperation and coordinated development of each subsystem. In the interface between organizations, in the interaction and cooperation between organizations, systems and systems, there is great potential for the systematic improvement of China's innovation capabilities. Therefore, in order to achieve economic growth based on innovation capabilities, emphasizing synergy and cooperation is a top priority. In the world trend of economic globalization and scientific and technological development, this task seems even more urgent.

3 Learning-based development in an open economy

(1) Openness and cooperation to absorb advanced knowledge and technology

Against the background of the increasingly globalized world economy and technological development, and under the basic trend that developed countries increasingly build their competitive advantage on the basis of knowledge and innovation, developing countries must get rid of the passive situation in the production of international value chains. Level of knowledge and technology. It is one of the effective ways to introduce advanced knowledge and technology through openness and cooperation. The practice of economic development in various countries around the world has increasingly proved that an open economic system is a dynamic system. Effective use of foreign knowledge resources can make up for the lack of original knowledge resources and improve the efficiency of the use of original knowledge. Obtaining external knowledge through cooperation is now an important strategy for corporate knowledge innovation. In this way, companies can not only fill their own strategic gaps, but also activate some of their knowledge. This is true of enterprises and so is the development of the country. The current global trend of industrial R & D that has emerged worldwide illustrates the importance of external knowledge in organizational development. In 1997, the R & D expenses of foreign companies in the United States were 199.6 billion U.S. dollars, and the number of overseas research and development institutions established by the United States in Europe, Japan, and other places was also increasing. . In addition, the strategic alliances between enterprises, especially the technical strategic alliances, have also developed rapidly. All this means that an open system is conducive to improving the level of knowledge innovation, and it also shows that learning between organizations and between countries can promote the development of innovation. The role of learning mechanism in promoting knowledge transfer and knowledge integration, especially the role of implicit knowledge transfer, is being valued more and more by people.

In the successful experience of Korean technology development from imitation to innovation, the key factor is the introduction and absorption of technology. Only through learning and absorption on the basis of introduction can the effectiveness of technology introduction be maximized, technology introduction as a knowledge learning mechanism, the spillover effect of knowledge can be fully utilized, the knowledge innovation ability can be improved, and the initiative of technology development can be mastered . If we treat the introduction of technology negatively, or reject foreign technology and knowledge, or passively rely on foreign technology and knowledge, we still cannot get rid of the passive situation of developing countries in the international knowledge division of labor system. Therefore, China's economic development should be a learning economy in an open economy. On the basis of introducing, digesting, and absorbing advanced knowledge and technology from others, China's knowledge innovation ability can be improved. At the current level of knowledge development in China, ignoring the general trend of globalization in the development of science and technology in the world, blindly emphasizing that independent development is not economical, and ignoring the cultivation of its own innovation ability, it cannot support sustained innovation and technological development Will gradually lose the ability to judge the introduction of technology and fall into a passive, dependent situation. The introduction of technology is a means of learning, and improving the ability through learning is the ultimate purpose of introduction. Therefore, in the new economic development model, the purpose of opening up is to promote cooperation, the purpose of cooperation is to learn and absorb advanced knowledge, and the final result is the improvement of China's own innovation capacity.

(2) The effective combination of specialization and globalization promotes the development of advantages

Modern cooperation theory and the practice of cooperation between multinational companies in recent years have continuously proved that the effectiveness and ability of cooperation in the cooperation are closely related to the advantages of the original expertise of the economic system. In other words, possessing expertise in a certain field can obtain more opportunities for complementary knowledge and be in a more advantageous position in the cooperative relationship. Because cooperation is a win-win or multi-win game, only if each has its own advantages, can the cooperative relationship develop steadily. In the cooperation between China and other countries in the world, the special advantages of Chinese companies are the basis for companies to acquire complementary knowledge. The local knowledge of Chinese companies is an important expertise. But this alone is not enough. On the basis of existing knowledge, we should seek the knowledge we need on a global scale, integrate it with the advantages of the original knowledge, and form more advanced specialized knowledge with international competitiveness. Such expertise is based on global knowledge resources and is globally competitive. At the same time, this kind of knowledge is rooted in a local and specialized knowledge system. It has an immutable nature and is a relatively durable ability. The formation of South Korea's advanced chip technology is actually a process of combining specialization and globalization. China has the most potential knowledge market in the world, but also has a wealth of local knowledge. If it is good at learning, absorbing and integrating, then based on specialized knowledge, it will form an international nature in certain specialized fields by effectively using global knowledge resources. Knowledge advantage is entirely possible.

4 Use institutional innovation to foster an innovative economy

Knowledge-intensive economic growth method uses knowledge as the basis to enhance the value realization and value-added ability, so as to achieve a high-quality economic growth model; emphasizes the network-based innovation method, and attaches importance to the internal cooperation and synergy of the innovation system Development; advocates to improve China's innovation ability by learning and absorbing advanced knowledge and technology in openness and cooperation, and emphasizes the use and cultivation of its own specialized advantages in global knowledge cooperation. These development strategies are closely linked and mutually reinforcing. The success of these development strategies requires the continuous improvement of social institutional arrangements, and an institutional environment that encourages and supports new knowledge-intensive growth and network system innovation models. Therefore, the necessary institutional innovation is an important institutional guarantee for the success of the new knowledge-intensive growth mode. The knowledge-intensive economic approach actually emphasizes the use of knowledge innovation and its role in economic development. Therefore, the institutional arrangements of society should ensure the effective development of innovative activities. In other words, institutional innovation is required to cultivate the spirit of innovation, cultivate innovative enterprises, Promote innovation activities to promote innovation activities.

Many of China's current institutional arrangements are the products of past extensive economic growth methods. With the establishment of new knowledge-intensive economic methods, and with the establishment of network and non-linear innovation methods, the existing institutional arrangements will necessarily be inconsistent with the new economic development model to a certain extent. Therefore, institutional innovation is required to make institutional arrangements. Can promote the effective operation of the new economic growth mode. We believe that institutional innovation at this stage can include the following main aspects:

(1) Improve the property right system and optimize the arrangement of the property right system.

Innovation activities are mainly derived from the knowledge production and application activities of the subject of innovation driven by benefits. Therefore, improving the property rights system, stimulating the innovation efforts of enterprises and entrepreneurs, and encouraging the spirit of innovation are important aspects of promoting innovation. Further promote the modern enterprise system, increase the enthusiasm of enterprises to participate in innovation activities, and enable more subjects to participate in innovation activities. At present, private enterprises are more enthusiastic in participating in innovation activities, and the performance of innovation activities is relatively good. One of the important reasons is that business owners and operators have been given incentives for proper property rights arrangements.

The innovation of the property rights system within the organization is also an important aspect of promoting innovation activities. In knowledge activities, the most important thing is the creation and dedication of personal tacit knowledge, and the dedication of personal knowledge means that individuals give up their exclusive rights to knowledge. Therefore, the organization must have appropriate institutional arrangements to Encourage and compensate for such a dedication. In addition, one of the ways to form organizational knowledge is the effective integration of personal knowledge. Internal collaboration and knowledge sharing are important mechanisms for organizational knowledge creation. This also requires appropriate incentives to encourage internal collaboration and communication. Therefore, the innovation of internal institutional arrangements plays an important role in the effectiveness of knowledge activities. The efficiency salary system, equity incentives, etc. of key technical innovation talents and senior management personnel in knowledge-intensive enterprises are all institutional designs conducive to knowledge innovation.

(2) Improve intellectual property protection and encourage the creation and transfer of knowledge.

Proper knowledge protection is a key issue in establishing a good knowledge and technology diffusion mechanism. Excessive knowledge protection, while stimulating innovation, reduces the use of innovative knowledge, restricts the effective use of new technologies, leads to a decline in the scale of investment in innovative knowledge, and may also lead to repeated development and research. Conversely, poor knowledge protection will reduce the incentive for innovation and reduce the speed and scope of knowledge transfer. The key is to choose the right balance point, while stimulating innovation, and promoting the rational use of innovative knowledge. At present, the main problem of intellectual property protection in China is insufficient intellectual property protection, but when designing a new institutional protection system, attention should also be paid to the principle of moderation in intellectual property protection.

(3) Further improve the capital market and encourage social investment in intellectual capital and innovation activities.

On the one hand, actively develop venture capital, make full use of venture capital mechanisms, combine more social financial capital with knowledge assets and knowledge resources, and promote the creation and commercialization of knowledge. On the other hand, the method of asset evaluation should be continuously improved, emphasizing the role of intellectual assets in social wealth, rather than just tangible physical capital. Only in this way can we truly transform market-worthy knowledge into productivity and promote economic growth. At present, in China's current asset evaluation and credit evaluation, tangible and fixed assets are valued, so knowledge-based enterprises and their assets are at a disadvantage. Relevant institutional innovation in the capital market should emphasize the importance and emphasis on intellectual assets and intellectual capital.

The worldwide tide of knowledge is irresistible. A more open China must join the competition of the world economy with new development methods. The development of an open learning economy and a knowledge-based innovation economy is a rational choice for China to continuously take the initiative and succeed in global competition.