Analysis on the Function Mechanism of Technological Innovation Promoting Industrial Structure Upgrad.doc

1、1Analysis on the Function Mechanism of Technological Innovation Promoting Industrial Structure UpgradAbstract. Industrial development is the important support for the development of a countrys economy, and technological innovation is the main factor of industrial development. Technological innovatio

2、n can improve the productivity of production factors and reduce the long-run average cost of an enterprise to make the enterprise realize benefit on a scale; develop new products, use new technology and occupy the market in advance to make the enterprise develop rapidly and obtain huge profits. We s

3、hould have a correct understanding of the status of technological innovation and its function mechanism on industrial structure upgrading, give full play to enterprises status and function as the main body of technological innovation, increase support of innovation from the government and research i

4、nstitutions, accelerate upgrading of Chinas industrial structure and step into the well-off society as early as possible. Key words: Technological Innovation, Industrial Structure 2Upgrading, Function Mechanism 1. Introduction Industrial development is an important way for economic development and t

5、echnological innovation is the main measure of industrial structure upgrading. For Chinas industrial structure upgrading and economic development in the future, it is very important what form should be adopted for our technological innovation, what stage our technological innovation is at, and what

6、policy guidance should be adopted by the government. A countrys industrial structure is always going from irrational to rational state. If industrial structure is irrational, it will influence the countrys national economy and its economic growth will be slow, thus the country will be in a backward

7、phase. And slow growth of national economy will hinder industrial structure upgrading and vicious cycle can even appear; If we can make full use of economic resources, effectively solve the problem of market demand, increase the yield and reduce the average cost, it is a rather rational industrial s

8、tructure, resources will be fully utilized, economic benefit will be increased and the pace of national economic growth will be accelerated. Industrial structure upgrading plays an important role in technological 3innovation. Under the guidance of technological development, it goes from the previous

9、 equilibrium to a new equilibrium, and it is a long-term dynamic process of establishment of new production function and transformation of leading industry. Speed and degree of industrial structure upgrading play a key role in national economic strength competition. Compared with the previous situat

10、ion, Chinas current industrial development has gotten great progress and improvement, however, the optimization problem of internal industrial structure still exists and there is a certain gap between China and developed countries. Firstly, although manufacturing scale is growing, there are few new

11、industries which own international competitiveness and innovation and industrial sectors which mainly belong to high-tech type. During the production process, industrial enterprises still focus on input of traditional production factors of labor and capital; they dont pay enough attention to technol

12、ogy and management knowledge and application of them, production efficiency of production factor is low, output is low, and industrial development is in the transition period from the early and mid stage to high stage; Secondly, industrial competitiveness is not strong, there is lack of awareness an

13、d understanding of innovations function 4on economic growth, being unable to use or less use of knowledge, and lack of attention to accumulation of knowledge and technological progress. We still mainly rely on the traditional production factor of high investment, we have strong dependence on traditi

14、onal industry and we are relatively weak in new manufacturing industry which represents the trend of the current worlds industry competition. China is one of the key agricultural areas; research on technological innovations function mechanism during the new industrialization process of China has the

15、oretical significance for us to correctly understand the relationship between technological innovation and industrialization. More efforts in technological innovation and settlement of weak links and remaining problems in the current process of Chinas industrial structure upgrading have great signif

16、icance for strengthening of Chinas industrial enterprises innovation capability, acceleration of industrial structure upgrading and sustained and steady growth of Chinas economy. 2. Understanding of technological innovation A consensus has been reached both at home and abroad that technological inno

17、vation is the important factor of development of modern society, industry and economy. Industrialization 5process or industrial structure upgrading is inseparable from enterprises, so we can think that enterprise is one of the main bodies of innovation. The concept of technological innovation resear

18、ch changes with time. The general understanding is that it is a kind of action that the enterprise realizes improvement and progress of technology through research and development, creates new products or labor services and puts them on the market. As to the enterprise, matters which need considerat

19、ion and need to be decided are: Appearance and development process of innovation, influence of innovation on enterprise and its function mechanism, prophase research and development of innovation, specific means and implementation methods of innovation, measurement of the degree of innovation, analy

20、sis and evaluation on the effect of innovation, application of innovative products, measurement of effect, and policy recommendations for innovation and so on. 2.1 Classification of technological innovation Broadly speaking, there are three common classification ways for technological innovation: Ac

21、cording to difference of technological level before and after innovation, there are two types: improved innovation and radical innovation. Improved innovation is a kind of slow, gentle and gradual improvement in 6technology, which has low speed, small intensity and small “destructive effect”. Radica

22、l innovation means that the original technology has undergone a complete change; it is rapid in speed and has great strength. In general, there is a period of and a series of improved innovation before radical innovation; according to different targeted objects in the process of innovation, there ar

23、e two types: product innovation and process innovation. The former refers to change of product usage and application principles, while the latter refers to breaking of previous traditional technology for production manufacturing, adoption of new technology and production equipments, increase of prod

24、uction and reduction of cost. According to the sequence of technological innovation products entering into the market, it is divided into independent innovation and imitation innovation. Independent innovation is a kind of initiative innovation, which achieves technology breakthrough and opens up th

25、e market in advance on the basis of continuous exploration and experiment and through the use of ones ability and cleverness. It is a kind of complete and radical innovation. Imitation innovation refers to that according to the independent innovator and existing innovative technology, improve self-d

26、ependent innovation with reflection 7on the success and failure, further develop good experience, and complement bad lessons. It is basically a kind of incremental innovation. Compared with self-dependent innovation products, products of imitation innovation have more competitiveness on market becau

27、se imitation innovation is more scientific and perfect. Since it is not the first one to open up the market, the risk is relatively smaller and the benefit is relatively more. 2.2 Significance and application of technological innovation Currently, technological innovation is a very common word both

28、at home and abroad, but awareness and understanding of it may be wrong. For example, there is an idea saying that technological innovation only has breakthrough in technology level; namely, it equals technological innovation to technological development, pays more attention to quality and promotion

29、of technology and doesnt mention whether the innovative result is consistent with the needs of market and whether it can create value and profit. Of course, this view will make enterprises and scientific research institutions focus on research and development and it will make the government do every

30、thing in its power to give the necessary 8policy support to enterprises, however, if we dont pay attention to the interest of new products, the rational economic enterprise which pursues “profit maximization” will lose the motive power to improve their technology. If products of technological innova

31、tion cant meet various demands of consumers in market, innovation is meaningless and loses the applicability. There is also a view going to another side, it simply focuses on economical efficiency of technological innovation. It may lead enterprises to blindly conduct impractical and unreachable tec

32、hnological innovation for the pursuit of economic benefit and forget the scientific nature and internal regularity of technological innovation. Seeing from the above two viewpoints, technological innovation is the behavior of fusion of science and technology and economy. It not only pays attention t

33、o the market demand, but also attaches great importance to technology itself. The final purpose of our technological innovation is to realize transfer and utilization of achievements. 2.3 Stages of technological innovation According to different stages of a countrys economic development level, techn

34、ological innovation must be divided into several steps; the first step is introduction of advanced foreign technology, being based on imitation innovation and 9promoting the upgrading of domestic industrial structure. Imitation innovation has the lowest risk and pays the smallest price, thus it is t

35、he road of innovation which must be passed through by underdeveloped regions and countries at the initial stage. We must stand on solid ground for technical accumulation, use technical achievements and successful experience of the lead innovator and learn advanced international technology. In the se

36、cond step, we should emphasize on both imitation and development. On one hand, we introduce and learn advanced foreign technology; on the other hand, we should selectively try to develop new technology, take imitation innovation as the transition to lay the foundation for self-dependent innovation i

37、n the future, rationally use economic resources and promote further optimization and upgrading of industrial structure. In the third step, give priority to self-dependent innovation, strive for the support from government and scientific research departments, improve the system of technological innov

38、ation, use high and new technology, construct high-tech industry, reduce the long-run average cost of enterprise, improve utilization rate and conversion rate of innovative product, and enhance enterprise efficiency to obtain scale economic benefit. Sticking to self-dependent innovation is the found

39、ation and 10source of a countrys industrial structure upgrading and true prosperity. 3. Understanding of industrial structure upgrading Industrialization refers to that industry occupies a large share in the economy of a country and becomes the largest one among three main industries and the main ba

40、sis for development of a countrys economy. It is also a process in which the agriculture-dominated social structure turns into industry-dominated social structure. Industrialization process is fairly long and industrialization plays a great role in promoting of development and progress of human soci

41、ety. But the worlds large scale industrialization tide also brings many negative problems to people, such as environmental pollution, and waste of resources and so on. So we are now to develop new industries, change internal structure and proportion of industry to make it rational, play the positive

42、 role of industry and change adverse effects. 3.1 New industrialization According to the Hoffman theorem, Leontiefs input-output method and research of Kuznets and so on, industrial structure upgrading is mainly manifested in three aspects: speed, trend and competition. It is specifically expressed in that high and new technology is used a lot and spread in production process,