A Structured Financial Framework for Sharing the Benefits of Technological Innovation against the Backdrop of the ‘K-shaped’ Divergence

Abstract

As China’s economic growth model gradually shifts from labour-intensive to technology-intensive, capital-intensive and knowledge-intensive, profound changes are taking place in the structure of employment, sources of income and patterns of wealth distribution. New growth drivers such as artificial intelligence, semiconductors, new energy, biotechnology and high-end manufacturing are capable of generating high levels of productivity and corporate value; however, their capacity to directly absorb ordinary employment is relatively limited, and capital gains tend to be concentrated among entrepreneurs, technical talent, venture capital firms, private equity funds and high-net-worth investors. At the same time, the contraction of traditional industries is driving some workers towards platform-based employment, temporary services and freelance work, which may result in a pronounced K-shaped divergence in economic development. Building upon the analytical framework for science and technology finance with Chinese characteristics proposed by Professor Yang Zhaojun, this paper introduces the ‘Science and Technology Finance Pool’ mechanism. Through government guidance, fund-of-funds operations, a diversified asset pool, secondary securitisation, risk stratification, risk retention and a cash flow waterfall structure, this mechanism transforms a portion of the growth returns from technology enterprises into standardised products with distinct risk-return profiles. This paper argues that, whilst the Sci-Fin Pool cannot replace employment, education and social security policies, it can serve as an important institutional supplement linking technological innovation, capital circulation and the property income of ordinary households.