关键词: 传统产业, 技术政策, 产品开发, 产业升级, traditional industries, technology policy, product development, industrial upgrading

Abstract: As an important part of the transformation of the pattern of economic development, a fundamental approach of the upgrading of traditional industries is to utilize those hi-tech achievements, i.e. the hi-tech transformation of traditional industries. The mainstream logic on this topic is to reform traditional industries by hi-tech ones, especially by digitalized equipment. This research discusses technical change in vehicle diesel engine in the past four decades. It shows that it is indigenous product development in traditional industries that results in endogenic and gradual technical change and thus is more effective than equipment upgrading. Product development therefore is confirmed as the main approach and key factor in the transformation. In the final part the paper summarizes the situation and related policy insights of the transformation based on product development.