What contribution does technological progress make to economic growth?

Deng Xiaoping pointed out: "Science and technology are the primary productive forces." Especially with the rapid development of science and technology and the transformation of economic growth mode from extensive to intensive, scientific and technological progress has become the main driving force and decisive restraint of economic growth.

1 Scientific and technological progress promotes the transformation of economic growth mode

(1) Scientific and technological progress is the forerunner of the transformation of economic growth mode

The essential feature of extensive management is that it Repetitive production with low-level technology, and the essential characteristic of intensive management is that it relies on scientific and technological progress to improve the comprehensive utilization of input factors and maximize output. That is to say, only with scientific and technological progress can it be possible to realize the transformation from extensive management that relies on inputs of labor and production materials for low-level repetitive production to intensive management that mainly relies on scientific and technological progress to increase the output rate of production factors. From a historical perspective, technology, as an extension of human organs, not only improves human understanding and the ability to transform nature, but also promotes the continuous development of human resource processing in a deeper direction, exchanging small inputs for high output and realizing human economic principles. , it is obvious that only the emergence of modern production technology and equipment and bioengineering technology will lead to agricultural mechanization, electrification and high-quality, efficient and low-consumption intensive agricultural management; only after several technological revolutions, the mechanization and electrification of modern industry will Intensive development with specialization, automation, low input and high output has become a reality.

(2) Scientific and technological progress is the driving force for the transformation of economic growth mode

Without scientific and technological progress, the production and operation of enterprises can only rely on additional input of labor and capital to maintain low-efficiency production. It is difficult to meet people's growing material and cultural needs. This is not the case in reality, because technological progress has promoted tremendous economic development. The main manifestations of the transformation of science and technology as the mode of economic growth are as follows: First, scientific and technological progress can promote the rationalization and advanced development of the economic structure, improve macroeconomic benefits, and promote economic development. Second, scientific and technological progress can better enable economic activity entities to achieve economies of scale and put enterprises on the track of intensive management. Third, scientific and technological progress can increase the output rate of production factors, reduce production costs, and achieve intensive growth. On the one hand, scientific and technological progress has continuously updated production technology, improved production automation and specialization, thereby improving the utilization of input factors, reducing product cost, increasing the total product volume, and improving product performance, so enterprises can achieve intensive operations. On the other hand, due to the advancement of science and technology, management technology has also improved, thereby achieving the optimal allocation of economic resources, improving the comprehensive utilization of economic resources, and expanding the input-output ratio.

(3) Scientific and technological progress creates conditions for the transformation of the economic growth mode

The performance is also multi-faceted: First, scientific and technological progress provides the material basis for the transformation of the economic growth mode. Scientific and technological progress has promoted the great improvement of human production and survival capabilities, created increasing material wealth, created more and better economic benefits under the premise of the same resource ownership, and eliminated obsolete production technologies and production methods. And open up new technologies and new industries; second, scientific and technological progress can break through various resistances and difficulties in the process of transforming the economic growth mode.

(4) Scientific and technological progress has a multiplier effect on economic growth and the transformation of its growth pattern

Due to the interactive use of scientific and technological progress and economic growth, scientific and technological achievements are applied to achieve economic growth. Diffusion, this diffusion brings about economic growth, and economic growth will in turn affect the research and development of science and technology. In this way, scientific and technological progress will expand during the interaction between science and technology and the economy, changing economic growth and its growth pattern. The process brings multiple impacts, thereby accelerating economic growth and the transformation of its growth pattern, similar to the multiplier effect of other input factors. From the perspective of scientific and technological progress, the scientific and technological development process itself is self-reproductive and accelerating, making scientific and technological progress develop in a geometric progression.

2. Scientific and technological progress promotes the upgrading and optimization of industrial structure

Among the many impacts of scientific and technological progress on changes in industrial structure, scientific and technological progress promotes the formation of emerging leading industries and changes the industrial structure, thereby driving Coordinated and sustained growth of the entire economy is paramount.

Scientific and technological progress first affects the sectors that directly apply scientific and technological innovation and turns them into leading industries. The leading industrial sectors formed by scientific and technological progress have driven the development of a series of related industries through forward and backward linkages, thus driving the sustained growth of the entire national economy. This related change in industrial structure is mainly manifested in the form of structural changes within the original industry and the emergence of emerging industrial sectors. The complete replacement of the leading industrial sectors based on the scientific and technological revolution has brought about profound changes in the industrial structure and led to drastic changes in the sustained economic growth rate.

The optimization of industrial structure is essentially the optimization of the allocation of production factors between industries. Scientific and technological progress can affect the production function, increase the marginal productivity of other production factors, and have a substitution effect on other factors, that is, it can produce more and better products than before with the same input of factors. Specifically, if technology remains unchanged, due to the existence of the law of diminishing returns for production factors, only within a certain limit, increasing the input of production factors can bring about an improvement in the output efficiency of unit factors. Once this limit is exceeded, not only the output efficiency of unit factors will Contribution will be significantly reduced and total output will trend downward. However, scientific and technological progress improves productivity through improvements in production factors and increases the output of input factors, which can offset the impact of the law of diminishing returns to a certain extent, thereby increasing the total output. Scientific and technological progress has changed the flow pattern of production factors between industries and promoted the rationalization of industrial structure.

To revitalize the economy, we must first revitalize science and technology. Science and technology have become the main driving force and decisive factor in economic growth. Especially in the process of transformation of economic growth mode, technological progress plays a decisive role. In order to better utilize science and technology to promote our country's economic growth. This article analyzes the important role of scientific and technological progress in promoting economic development, changes in economic structure, and transformation of economic growth methods from the perspective of the combination of technology and economy.