Promoting the development of new quality productive forces through institutional innovation in administrative reform

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Purpose This paper examines the role of institutional innovation in developing China’s new quality productive forces (NQPFs), with a specific focus on the policy evolution from early “deregulation” to contemporary “Fang Guan Fu” (the reform of delegation, regulation and service). It aims to analyze how this institutional change has facilitated the advancement of NQPFs in the context of China’s economic transformation. Design/methodology/approach Employing a historical and systematic analysis, this study traces the trajectory of China’s administrative reforms over the past four decades. It integrates perspectives from political economy, institutional theory and innovation studies to evaluate the impact of these sequential reforms on the emergence and growth of NQPFs. Findings The study reveals that the reform of “delegation, regulation and service” represents a critical institutional innovation that has significantly catalyzed the development of NQPFs. This reform signifies a fundamental shift from initially empowering enterprises through deregulation to constructing a sophisticated ecosystem that blends regulation with services, thereby underpinning technological innovation. This institutional transition has been instrumental in enabling the transition from traditional to advanced, high-tech productive forces and in fostering an innovation-conducive environment for strategic emerging industries. Originality/value This paper provides a comprehensive analysis of the role of institutional innovation in driving economic transformation in China. By connecting the reforms of “deregulation” and “delegation, regulation and service” to the development of NQPFs, the paper offers fresh insights into how institutional reforms can adapt to the demands of technological revolutions, providing valuable guidance for other economies undergoing similar transitions in the digital age.

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