The Economic Analysis On The Change From Attracting Investments To Attracting Intellectuals

Although recently China's economy has grown rapidly,even surpassed the USA,however,it is without doubt that China remains a developing country.And China's economy is at a turning point in the term of economic restructuring.Suzhou,as a typical Chinese city,speeds up upgrading,improves urban morphology,overtakes the resource constraints,to grasp the historic opportunity of building a moderately prosperous society in all aspects during the 12th Five-Year Plan period.In face of the great opportunity and challenge,Suzhou must push forward the emerging industry,and upgrade the old-fashioned ones,which is the only approach for Suzhou to realize the sustainable development.In the hope of explaining Suzhou's case,and shedding some enlightenment on China's economic transformation,this essay draws out the economic theory,based upon Suzhou's developing experience.This article uses the Romer's Knowledge Spillover Producer Behavior Model,and introduce products department.Under the framework of general equilibrium analysis of the characteristics of the closed area economic development,this essay makes dynamic analysis on the consumer's behavior and enrich the study on the balance of short-term and long-term equilibrium,and analyzes the effect of the regional economic development,including the economic growth effect and the economic structural adjustment effect.From the theoretical model in the article,Suzhou development process can be divided into two stages:investment promotion and intelligence import.The former is generally the accumulation of capital,while the latter means the accumulation of human capital as the main driving force.This essay theoretically explains the cause of this transformation,and the function of the government's policy in two stages.We get several conclusions.The first conclusion is that a region's economic development level is constrained by its capital per capita,and under the influence of other economic parameters.The next is that in investment promotion stage,through the relevant policies and infrastructure building,a large number of enterprises are attracted to Suzhou,which brings the prosperity in Suzhou.This development is called Suzhou model.However,as economic size grows,this development model hits the bottleneck.Then Suzhou introduce the 2nd stage,which is intelligence import,to restructure economy.By self-innovation,increasing additional value of product,the core competitiveness of enterprises are enhanced.Suzhou's economy moves from cost advantage to efficiency advantage.At this stage,through the policy guidance the government speeds up the human capital accumulation,resulting in a new round of growth.Based on this,this paper presents the following suggestions:firstly to deep reform and optimize the industrial structure so as to weaken the resistance of the transformation of economic development patterns;secondly to strengthen independent innovation,improve the quality of the labor force,and the diversification of investment channels,in order to enhance the driving force of economic development mode change;thirdly,make and design the development strategy to meet the local developing needs.In the path of in China's economic transformation,we should clearly understand the stage characteristics,grasp the regional economic characteristics.We must set out policy from the reality,like Suzhou's transformation from investment promotion to intelligence import.At the same time,the adjustment should applied in the local economic development.Only in this way can we ensure sustained and healthy development of the Chinese economy to realize the change of the pattern of economic development.