Innovative China : New Drivers of Growth

After more than three decades of average annual growth close to 10 percent, China's economy is transitioning to a “new normal” of slower but more balanced and sustainable growth.Its old drivers of growth - a growing labour force, the migration from rural areas to cities, high levels of investments, and expanding exports - are waning or having less impact. China's policy makers are well aware that the country needs new drivers of growth.Innovative China proposes a reform agenda that emphasizes productivity and innovation to help policy makers promote China's future growth and achieve their vision of a modern and innovative China.The reform agenda is based on the three Ds:Removing Distortions to strengthen market competition and enhance the efficient allocation of resources in the economyAccelerating Diffusion of advanced technologies and management practices in China's economy, taking advantage of the large remaining potential for catch-up growthFostering Discovery and nurturing China's competitive and innovative capacity as China approaches OECD incomes in the decades ahead and extends the global innovation and technology frontier.