The book constructs the Synergy Theory a new theory of economic growth and calculation
methodology. The book involves empirical comparative study on economic growth between China and
the 14 developed countries and on the basis of the synergy theory divides GDP into labor
compensation capital income and synergistic benefits further establishes the new empirical
model including the major determined factors of economic growth such as growth of physical
capital stock growth of investment in physical capital improvement of science and technology
improvement of human capital quality labor force growth institutional innovation and economic
externalies. Subsequently it uses the method of Data Envelopment Analysis to calculate the
contribution of institutional innovation to economic growth and it also focuses on the
analysis of the determining factors of economic growth. Based on the analysis above the new
theory has been tested and the countermeasures and suggestions involving China's
innovation-driven economy have been proposed.
