ABSTRACT
As shown in the last chapter, even though there is still a huge space for high growth in China, this does not mean that high growth will automatically be achieved by itself. In order to maintain the high growth in China, its growth mode must be transformed: the future growth mode in China must be transformed gradually from demand-pull growth (mainly pulled by investment demand) into the supply-driven growth mode prominently marked by technological progress. Yet, what is the technology? How does it progress? And what are the factors affecting technological progress? How do advances in technology change our economy? What role does the government play in technological progress? These points will be discussed in this chapter.
