Research On The Countermeasure Of Chinese Across The Middle Income Trap

With the continuous development of knowledge economy,the technological innovation has become prerequisite for Developing Countries across the "middle income trap".But in fact,these Developing Countries generally lack of technological innovation power.The previous point hold that these countries could achieve success and share excess add profits as long as they increase investment in technological innovation,however,this expectation usually fall into naught in real world.This article hold that the previous analysis on technological innovation's expect profits will be possible only based on these developing catching-up companies under Cournot or Starr competition model.While,in reality,these Developed Counties companies won't give up their monopoly,they will use Bertran price and even predatory price to extrude these scientific and technological catch-up companies out of the market,so that weakening these developing countries' technology innovation initiative,hinder these companies gain extra profit so that they fall into financial trap.So,these developing countries' companies usually confront with the dilemma that introduce technology or conduct technology innovation.The author analysis this dilemma from the perspective about Bertran competition,and called this situation "Bertran Dilemma".At present,China also be faced with technology innovation's "Bertran Dilemma",so,how to systematically discuss Chinese technology innovation's"Bertran Dilemma" and seek measures to resolve "Bertran Dilemma”will be essential to China across "middle income trap".Based on this context,this paper firstly reference existing mature economy growth theory,and review the research about relationship between "middle income trap" and technology innovation.The result show that these Developing Countries lacking technological innovation contribute to falling into "middle income trap".Secondly,conduct specific deduction on technological innovation's "Bertran dilemma" in Developing Countries as well as international experience resolve this dilemma,and use game theory to conduct systematic analysis on "Bertran dilemma".Thirdly,we conduct systematic analysis on the embodied showing of Chinese"Bertran dilemma" and its reason.Finally,based on the theory of economic growth and Chinese overall condition of "Bertran dilemma,the author construct the panel model to conduct empirical analysis on "Bertran Dilemma".As the empirical results show,the "Bertran dilemma" leading to low efficiency of technological innovation,which couldn't highly promote economic growth.For the above,combine with the actual situation of Chinese "Bertran Dilemma".In order to ensure that China can smoothly across the "middle income trap",and achieve sustainable economic and social development,the paper puts forward the corresponding policy recommendations from macro and mac perspective,the Government should enhance innovation capability,strengthen the dominant position of innovation;optimize the domestic industrial structure,accelerate the development of high-tech industry;improve the innovation system environment,the legal environment and intellectual property protection system as well as their enthusiasm for innovation;in addition,enterprises should also strengthen the innovation capacity building,foster corporate culture of innovation,reinforce innovation and incentives to accelerate the strategic layout of the patent in order to heighten their competitiveness.