Abstract: The basic way for China to promote the new industrialization strategy and accelerate the high-end development of manufacturing during the 15th Five Year Plan period is to form and strengthen a sustained and stable investment growth mechanism of knowledge capital, human capital, and technological capital in the manufacturing industry. The modern productive service industry is the flywheel that introduces these capitals into the manufacturing production process. It is the smart brain, strong heart and takeoff wings of modern manufacturing, and the invisible front for building a modern industrial system. During the 15th Five Year Plan period, using sustained and stable investment in modern productive service industry as a means to promote the high-end development of manufacturing industry requires a re-understanding of the characteristics and economic attributes of productive service industry, and establishing its priority strategic position in industrial policy support. We need to deepen market-oriented reforms and eliminate institutional barriers that hinder the professionalization, marketization, and opening-up of productive service industries. Economic policies should shift from supporting generalized capacity expansion to focusing on strengthening the construction of intermediate input growth mechanism between modern productive service industry and manufacturing industry. We need to improve the new statistical monitoring system and accurately quantify the economic contribution of modern productive service industry.
