Disruptive technology and industrial policy paradigm shifts: a discussion based on China

How to understand the relative success and institutional basis of the industrial policies implemented by the Chinese government since the reform and opening up? And, In the context of a new round of scientific and technological revolution, disruptive technologies are constantly emerging, what kind of challenges will this new situation bring to China's existing industrial policy paradigm? In this paper, I employ the method of literature and theoretical analysis, combined with a series of related studies, especially of my own, to answer the above questions. In my view, China's relatively successful industrial policy paradigm will become a trap of China under the rise of disruptive technologies. To prevent China from falling into the trap, the Chinese government need to transform from a selective industrial policy to a functional industrial policy. It should conduct a comprehensive reflection on the existing national innovation system and reshape the science policy, technology policy, talent policy and competition policy. Therefore, it is also necessary to establish an institutional foundation compatible with the new industrial policy paradigm in terms of incentives through institutional reform.