By Fang Jin, China Development Research Foundation

Research Report, No.255, 2020 (Total 5999) 2020-10-28

Abstract: Research findings show that since the 1970s, due to the fact that the third industrial revolution was focused mainly on IT field, the technological progress of the United States became slowed down compared with the previous periods, and the total factor productivity declined significantly, which directly resulted in a drop in the economic growth performance. This has exerted adverse effects to the economic and social development of the United States, such as high government fiscal deficit, widening income gap, rising populism and other issues, which are major reasons leading to frequent social conflicts in the United States. In the long run, technological progress is the main determinant of economic growth. In order to promote scientific and technological innovation, China has taken a series of major measures. In the future, we need to further encourage enterprises to carry out research activities, increase investment in scientific and technological innovation in the fields of energy, transportation, aerospace and materials, and attract more international enterprises and research institutions to carry out scientific and technological R&D activities in China, so as to create favorable conditions for the development of disruptive innovation.

Keywords: technological progress, basic areas, disruptive innovation, the U.S.