So, what is take-off?It is to start to apply the results of the scientific revolution to economic activities on an active, large-scale and conscious basis, change the proportion of factor input, and greatly improve the level of economic growth and human welfare.
He believes that from a traditional economy to a modern economy, the most critical thing is to have a double effort, to have an acceleration.He found inspiration in aircraft taking off — the need for an instant of acceleration;Without enough instantaneous acceleration, the gravity of the earth cannot be resisted off, and the aircraft cannot get up.
He believes the take-off stage is a very critical factor in economic growth.Based on historical experience, especially western experience, he summarized three conditions for “take-off” :
First, investment should account for 5-10% of the national income.If investment was less than 5-10%, at the current rate of capital output, growth would not exceed 3%.If growth does not exceed 3%, it will not offset population growth;It cannot offset the growth of population. If the economic aggregate has expanded but the per capita (income) has not increased continuously and significantly, then it cannot be called modern economic growth.Modern economic growth is defined as a sustained and significant increase in per capita income.
Second, there must be some leading sectors of economic growth.Since economic growth is a process, it will take the lead in some areas and some sectors of production, and then transmit to other sectors.This as the engine forward to the department, to have a significant growth effect.Such as the early Years of the British textile industry, the construction of railroads in the United States, the German chemical industry, and so on.
Third, create a vibrant entrepreneurial class.This is very important, and this is what sets Rostow apart from many other economists.Because he incorporated science, technology, innovation, risk-taking and entrepreneurship into his analysis of economic growth that most economists cannot handle.He argues that a vibrant class of entrepreneurs who take risks and innovate can gradually bring technology into the economic process.