Abstract: Ideas can determine the way out. Thoughts (cognition or social ideas) are the important reasons determining the performance of a country's economic development. From the perspective of government development strategy and industrial policy, the new structural economic theory can well explain the structural transition routes of Singapore and Hong Kong of China and the phenomenon of economic growth polarization. Through policy combing and data analysis, it can be found that Singapore government is a circumstance-oriented government, following a comparative-advantage development strategy and formulating industrial policies to guide industrial transformation and upgrading, by which its manufacturing competitiveness has been obviously improved. However, the government of Hong Kong of China is a laissez-faire government, lacking effective industrial policies. Due to its implementation of active non-interventionist policy after the reversion of sovereignty, it consciously formulates its industrial policy to guide the industrial upgrading but violating the comparative advantages, leading to the industrial upgrading being blocked and the manufacturing competitiveness being declined continuously. By further comparing the performances at such aspects as upgrading of factor endowment structure, income distribution, openness and macroeconomic stability between Hong Kong of China and Singapore, it can be found that the economic performance of Singapore is significantly better than that of Hong Kong of China. The above conclusion can offer some implications to China's leading cities to carry out the new development concept and correctly handle the relationship between government and market in the new era.

Key words: development ideas, industrial policy, structural transformation, economic performance, new structural economics