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By Shi Guang, General Office, DRC

Research report No.115, 2017 (Total 5190) 2017-9-12

Abstract: This paper analyzes the main characteristics of hi-tech industry development from 1999 to 2014 in some typical countries, including four Nordic countries, the top four nations, though little (Holland, Switzerland , Israel and Singapore) and the BRICKS countries. Hi-tech industry takes up a limited share in economic aggregate, but it plays, together with a few other key industries, a major role in enhancing national competitiveness. The proportion of high-tech industry’s added value in total GDP shows a trend from rise to decline in line with economic growth, presenting an inverted U curve. During the latter half of the inverted U curve, the industrial structure becomes upgraded through retaining high-end links and eliminating low-end ones. The peak of industrialization is not the peak of hi-tech industry and the fluctuation of hi-tech industry is much greater than the fluctuation of economic cycle. Major economies usually take a more balanced strategy for hi-tech industry development while small countries are inclined to adopt specialized strategy. The experience of typical countries shows that successful hi-tech industry is an indispensable factor for crossing the middle-income trap. It is difficult for a single country to take a commanding height in all fields of hi-tech industry. The technological innovation of hi-tech industry needs to make breakthroughs in key areas, and gradually enhance the overall competitiveness through taking hold of typical examples to promote innovation as a whole. Major economies need to take account of both the development of hi-tech industries and traditional industries.

Key words: hi-tech industry, economic growth, technological innovation, R&D intensity (research and development intensity)