Smart New Economy

2016-10-16 Posted by:admin Categor:News of the group
Outlook Special Edition – “Smart New Economy” Facilitating Industrial Transformation and Upgrading

As pointed out by Premier Li Keqiang in the government work report at the fourth session of the 12th National People’s Congress on March 5, this is a crucial period in which China currently finds itself, during which we must build up powerful new drivers in order to accelerate the development of the new economy. We need to move faster to develop new technologies, industries, and forms of business, boost the development of a sharing economy through institutional innovations, create sharing platforms, and develop emerging industry clusters such as high-tech and modern service industry clusters, thus creating strong new engines.
The report explicitly proposed that we will use network-based information technology and other modern technologies to drive changes in models of production, management, and marketing, create new industry chains, supply chains and value chains, and transform and upgrade conventional drivers, thus injecting them with new vitality.
Looking around the world, in the new round of technological revolution and industrial revolution, it has become an irresistible trend of the era to use network-based information technology and other modern technologies to fully integrate brick and mortar industries with the virtual economy, and form the new smart system. This trend is having a strategic and holistic impact on the socioeconomic development of all countries. This new economic phenomenon is referred to as the “Second Economy,” “Smart Economy” or “Smart New Economy” by some experts and scholars.
The American economist, Brian Arthur, proposed the concept of the “Second Economy” and defined it as follows: The original brick and mortar businesses are becoming digital businesses. Many business processes that used to occur person to person are completed electronically and are taking place in a fully digital realm. The “Second Economy” relies on big data, the IoT, and other emerging technologies to a great extent. It fully combines brick and mortar industries with the virtual economy to cover production, circulation, consumption, and living, forming a smart and upgraded new system.
In his Symmetrical Economics, the scholar, Chen Shiqing, elaborated on the concept of “Smart Economy”, i.e., a strategic and innovative economy that integrates technology, information, knowledge, environment, culture and morality and that is based on the application of the new generation of information technology and the open operation of shared big data to drive the transformation and upgrading of traditional economy while generating new economy and new forms of business. It focuses on the in-depth integration of informatization and industrialization, and promotes the integration of informatization, industrialization, urbanization, and agricultural modernization. It is reflected in industry intelligentization and smart industrialization.
As one of the first batch of experts of the national “One Thousand Talents Plan”, Xia Jiantong put forward the concept of the “Smart New Economy” on the basis of the second economy theory and industrial and enterprise practices.
The smart new economy, as a new economic form, is considered by some economists as the fifth economic development pattern following agricultural economy, industrial economy, information economy and knowledge economy. With the extensive applications of the smart new economy in transportation, healthcare, education, pension and other areas, our life style can undergo significant changes as a consequence.
To develop the smart new economy is not only an inevitable choice for conforming to the new stage of development, addressing the new challenges of development, and implementing the new requirements of development, but also an important measure to improve people’s quality of life. It is of strategic importance for China’s economic transformation and upgrading to promote the in-depth integration of informatization and industrialization as well as the “smart + various industries” integration and innovation. Some experts believe that the smart new economy will be an important form of China’s economic development in the “13th Five-Year Plan” period. (Text / Reporter Yao Bucheng)