Abstract: This article is based on the productivity dilemma theory, using provincial data from 2000 to 2017 in china, through the structural decomposition of the technical efficiency of the real economy, analyze the impact of heterogeneous R&D on the persistent technical efficiency of the real economy and the regulatory effects of the government support and market-oriented reforms in it. The results show that persistent technical efficiency growth stagnated is the main reason that restricts the improvement of the overall technical efficiency of the real economy, disruptive innovation has an inhibitory effect on improving the sustainable technical efficiency of the real economy; incremental innovation can promote the continuous technical efficiency of the real economy. To break through the productivity dilemma of the real economy, we must pay attention to the moderating effects of the government and the market on different innovative activities, disruptive innovation needs the strong support of "promising government". incremental innovation pays more attention to the allocation function of the "effective market" and the external effects of the "limited and promising government".

Key words: productivity dilemma, subversive innovation, incremental innovation, government support, market-oriented Reforms