Strategy Towards Knowledge Economy in China

information choice. The government should encourage and facilitate access for all Americans to the information they need to advance the social good and democratize the social and political activities of the nation.

Principle 9: Demand High-Performance Government

Governments need to be responsive, accountable, and responsive to the demands of the economy and society in their interrelationships. The new model of government is decentralized, non-bureaucratic, results-oriented, and empowered. In some cases, government agencies should become performance-based organizations (PBOs) to achieve defined social goals. Some public services should be provided by social and private organizations. When providing solutions to social problems such as reducing industrial pollution or providing world-class public education, governments should hold organizations and individuals accountable, allowing them to be proactive in achieving their goals.

The government should also apply information technology in restructuring and providing public services to increase quality, efficiency and reduce costs. In restructuring the government, e-Government is the next step.

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Principle 10: Replace bureaucracy with networking Comments

These ten principles are part of the official publication of the Policy Development Institute’s (PPI) Technology and the New Economy Project. The project’s mission is to guide federal, state, and local policymakers on the issues that drive the knowledge economy as well as

develop policies that encourage technological excellence, economic innovation and entrepreneurship.

The content of the above principles shows that the concept of the new economy in the US today has changed compared to before, since President Bill Clinton officially used the name of the knowledge economy according to the definition of the OECD in the "State of the Nation Message" in February 1997. Before 2000, in the US, the knowledge economy was often understood as synonymous with high technology science, especially computerization and information technology with the explosion of e-commerce as well as applications in insurance, financial, and media services... Therefore, private and state organizations all have a deep investment strategy to gain an advantage in science and technology to increase production capacity, compete to take the lead to dominate the market and consider this as a way to create a new economy called the digital economy. But up to now, the US considers the digital economy as just one area of the new economy, understanding it as a socio-cultural environment that is favorable for the creation, dissemination and effective use of knowledge on the basis of respecting market principles.

2.2.5. Strategy towards knowledge economy in China

This strategy is a World Bank study on China entitled: “China and the Knowledge Economy: Catching Up in the 21st Century”. This study points out the potential challenges that China must face in the information and knowledge revolution: creating jobs; maintaining growth and international competitiveness; reducing income and regional inequality; protecting the environment. In addition, China must also face the global knowledge revolution. Although it poses many challenges, it also brings opportunities for China to develop sustainably.

The policy recommendations in this study have been applied in many localities in China and have initially achieved success, so they can be considered as China's perceptions of the knowledge economy. Below is a summary of the report's policy recommendations on the strategy for developing the knowledge economy in China:

First, reforming organizations and economic incentives.

The new changes will be the new role of the State. The government must move from being a producer and controller to being the architect of a socialist market and knowledge-based economic system. This is a self-regulating system through appropriate market-supporting institutions. There are six areas that need support to form a thriving knowledge economy:

- Strengthen the legal and regulatory framework to support the potential of businesses.

- Promote economic competition.

- Strengthen the financial system.

- Facilitate labor market flexibility.

- Develop an effective social security system.

- Promote the development of small and medium enterprises.

Second, reform education and training.

Higher education and other forms of higher education are essential for a knowledge-based economy. Despite dramatic improvements, China’s educational performance remains low. This is perhaps the most important reform in the long run because it is the source of economic development.

knowledge. People need to be educated and trained in creative skills with the ability to learn throughout life. Some reform directions that need attention are:

- Modernize the curriculum at all levels to provide the basic skills required by the knowledge economy.

- Improve investment efficiency in education.

- Integrate the private higher education system into the formal education system and restructure local and national education sectors.

- Ensuring equality in education

- Innovate the vocational training and education system to better meet the needs of businesses.

- Implement retraining programs for millions of laid-off workers so they can find other suitable jobs.

- Unleash the enormous potential of internet-based training, leveraging the already well-developed distance learning infrastructure.

Third, build information infrastructure.

Modern information infrastructure and telecommunications systems are the critical point to overcome in order to enter the knowledge economy. Some actions to build modern information infrastructure are:

- Encourage strong competition by opening up the telecommunications market.

- Further opening up to foreign investment in the field of information technology services.

- Expand Internet access and encourage the development of national websites.

- Stronger encouragement of the application of information and information technology in the economy.

- Encourage B2C, B2B e-commerce.

- Encourage the formation of e-government to improve the efficiency of relations between ministries, in tax collection and budget management as well as make government operations more democratic and transparent.

- Encourage widespread training in the field of information and information technology.

Fourth, popularize technology in the economy.

Modern industrial infrastructure is currently concentrated mostly in 50 high-tech zones. China needs to quickly disseminate and apply technology and knowledge-related issues from efficient production areas to less efficient areas. To do this, in addition to policies and institutions that encourage the market to operate effectively, the Government needs to:

- Prioritize resources to develop technology dissemination systems such as research centers, innovation programs for primary processing industries, support for SMEs, and expand services in the agricultural sector...

- More support for business innovation.

- Facilitate innovation

- Develop and use technical standards.

Fifth, develop research and development systems.

The government should increase support for basic research, encourage research-intensive industries, and recognize the importance of intellectual property rights. In particular, it is necessary to exploit global knowledge by focusing on attracting foreign investment in areas of strategic interest.

Comment

China is a country that is actively preparing to embrace the knowledge economy, considering it a great opportunity that must be taken advantage of to become a developed country in the 21st century. This report is built on the World Bank's consistent view of the knowledge economy in the specific conditions of China. The report's concept of the knowledge economy is the World Bank's understanding: a socio-cultural environment that is favorable for the production, dissemination and use of knowledge.

2.3. GENERAL COMMENTS ON STRATEGIES

2.3.1. Comparison of strategies

First, the reasons and purposes of drafting strategies

All the above countries have drafted and issued strategies towards knowledge economy in the context of their economies facing current and potential challenges in the future created by knowledge and information revolution. These countries all realize that the economic development model currently applied does not guarantee to create competitiveness, long-term and sustainable growth in the future because the national and global economy in general has actually entered or is entering a higher stage of development with completely new conditions and constraints. The new model replacing the old model here is knowledge-based economic development.

Second, the general goal of the strategies

Except for Finland, which sets out the goal of building an “information society”, the strategies of the above countries all directly mention “building a knowledge economy” or “a knowledge-based economy”. However, the way Finland defines the information society through the main characteristics described in the strategy is completely similar to the concept of

The knowledge economy is an economic - cultural - social environment with suitable characteristics and creating the most favorable conditions for the production, dissemination and use of knowledge. The highlight of all strategies is that they all believe that the development of the knowledge economy is a comprehensive process, requiring not only economic but also cultural, social and political changes.

Third, the policy framework implemented in the strategies

In general, the strategies reviewed above emphasize, albeit to varying degrees, the following policy measures:

- Building a highly competitive environment as well as increasing the competitiveness of the economy.

- Build a culture that supports entrepreneurship and innovation.

- Building a universal and effective telecommunications network.

- Reform the education network, develop human resources, focus on lifelong learning.

- Reform the Government apparatus and operations.

2.3.2. General comments

First , the above strategies demonstrate that the concept of knowledge economy has transcended theoretical debates to become a reality, or at least is officially considered a reality by many countries.

Second , the knowledge-based economic development strategy is first and foremost a socio-economic strategy, not a science and technology strategy. The goals and policy measures of the above strategies all include many socio-economic aspects.

Third , the knowledge economy must first be a competitive global market economy. It is impossible to separate the competitive market and economic openness from the knowledge economy. The strategies analyzed above all consider promoting competition and enhancing economic integration as key policy priorities for developing the knowledge economy.

Fourth , the transition to a knowledge-based economy is a comprehensive process, encompassing many broad cultural, social, and political aspects, not just economics and science and technology. In particular, cultural transformation is very important.

Fifth , the strategy reflects the recognition that the transition to a knowledge-based economy is a “bottom-up” process, in which the private sector plays a key role.

Sixth , knowledge does not only include science and technology, and certainly not information technology. However, information technology and economic globalization are two important infrastructure foundations of the knowledge economy because they are the technical, socio-political environments that are favorable for the formation of knowledge networks as well as the opening up and application of global knowledge for development. The term "knowledge-based economy" also allows us to grasp something qualitatively new in the organization and management of modern economic life: the factors that determine the success of enterprises and national economies depend more than ever on the ability to produce and use knowledge.

Seventh , although the knowledge economy is not high-tech, the new sectors that have driven the average growth of the entire economy in developed countries over the past few decades all have a