A three-pronged new development model for overcoming the middle-technology trap in China

• Published in: Asian Review of Political Economy 2024-10, Vol.3 (1), p.1-19, Article 18
• Main Authors: Yongnian, Zheng, Randong, Yuan
• Format: Article
• Language: English
• Subjects: Development Studies; High-quality development; Innovation economy; International Political Economy; Middle-income trap; Middle-technology trap; Political Science and International Relations; Political Science and International Studies; Research Article; Sustainable economic growth; Three-pronged new development model
• ISSN: 2731-5835; 2731-5835
• DOI: 10.1007/s44216-024-00039-z

This article addresses a critical issue facing developing countries: overcoming the “middle-technology trap” to achieve sustainable economic growth. It posits that transitioning to an innovation-driven economic growth model is pivotal for surmounting this trap and is an essential prerequisite for high-quality development. This study introduces a strategic approach through a new development model, emphasizing the synergy among three core systems: basic scientific research, applied technology, and financial support. This “three-pronged” collaboration model is argued to foster sustainable innovation-driven growth, essential for leaping over the “middle-income trap” towards high-quality development. By analyzing the historical trajectories of the Soviet Union and the United States, the article delineates the critical role of the proposed model in fostering an innovation economy. The Soviet Union’s failure and the United States’ success are examined through the lens of their respective approaches to integrating basic scientific research, applied technology, and financial systems. The analysis underscores the necessity of a balanced and interactive relationship among these systems for technological innovation, industrial development, and sustainable economic growth. The article concludes that for China to overcome the “middle-technology trap” and achieve long-term prosperity, it should embrace this “three-pronged” new development model, ensuring continuous scientific exploration, technological innovation, and productivity enhancement.