Study on Contribution Rate of Scientific and Technological Progress to Economic Growth- Empirical Study Based on Wenzhou

Scientific and technological progress is the main impetus of modern economic growth. Whereas, when we use Solow growth model to have accountability analysis on the contribution rate of scientific and technological progress to economic growth in Wenzhou City between 1981 and 2008, we find out that during the period from "6th five-year plan" to "10th five-year plan", the average contribution rate of scientific and technological progress presented a remarkable tendency of gradual decline. Although from 2006 to 2008, the contribution rate of scientific and technological progress has upturned to 36.26%, it is still far away from the strategic objective determined by national science and technology development planning, and it also has huge gap when compared with developed countries. Hence, local government must enhance the regulation on local economic development environment, reduce the opportunity of pure speculative investment, construct new development platform, encourage and guide private capital to flow to scientific innovation field, accelerate the transformation of local economic growth mode, and realize the transformation from traditional economic growth mode driven by investment to modern economic growth mode driven by scientific and technological innovation.