Pathways to Overcome the Income Trap by Leveraging New Quality Productive Forces

Аннотация

This paper aims to demonstrate the prevalence of income traps at different income stages. It identifies technology trap as the root cause for falling into the income trap and explores how technological innovation serves as the fundamental driving force for overcoming the income trap. By reviewing historical experiences and real-world cases, this paper provides a theoretical interpretation and comparative analysis of the manifestations and technological origins of income traps at different income stages. The findings indicate that low-income economies often stagnate due to insufficient technological accumulation; middle-income economies face technological hollowing-out and transformation difficulties, while high-income economies are constrained by technological stagnation and diminishing innovation efficiency. As China is entering the high-income stage, it is essential to promote the development of new quality productive forces through technological innovation. Only by doing so can the country continuously surmount the high-income trap. This paper concludes with policy recommendations, highlighting the need to strengthen independent innovation, accelerate the commercialisation of scientific and technological achievements, establish institutional environments compatible with new quality productive forces, and refine mechanisms for talent incentives and cultivation.

Keywords: New Quality Productive Forces; Technological Innovation; Trap.