Technology upgrading and China's growth strategy to 2020

They report growth rates of 18.8 per cent and 20.4 per cent for the FDI part of the economy in 2003 and 2004 in contrast to growth rates of 6.7 per cent and 7.1 per cent for the remainder, and show that nearly all total factor productivity growth occurred in the FDI portion. [...] Weiguo Song, a researcher at the National Research Centre for Science and Technology for Development under the Ministry of Science and Technology, along with Jun Li have summarized3 3 Guanhua Xu, Minister of Science and Technology in China, at a press conference of the 4th Session of the 10th National People's Congress argued that in order to achieve the aim of quadrupling GDP by 2020, China has t [...] Responding to the first, the Chinese government has launched a series of initiatives as part of the S&T Guidelines 2006-2020, including the cultivation of a younger generation of talent to take the lead in academic research; the cultivation of innovative talent while implementing key national projects; the attraction of overseas talent; and the establishment of a group of world-class universities [...] Their growth accounting equation is; (3) where the superscripts F and N relate to the FDI and non-FDI sectors, and gF and gN are the shares of output in the FDI and non-FDI sectors. [...] Hayami (1999) compares the changes in the sources of modern economic growth in Japan and the United States, finding that the Japanese High Growth period (1958-1970) was character- ized by both high capital input growth and technical progress while US growth was mainly driven by technical progress in the comparable period (1929-1966) as reflected in the TFP contribution figure of 53 per cent in Jap