A Study On The Relevance Between Industrial Technological Policy And Industrial Performance

The development of a country’s economy grounds on the development of the industrial economy which bases on the industrial technology. Only advancement of the technology structure can help optimize the industrial structure and improve the whole industrial system. However, due to the existence of market failure, market is unable to provide sufficient technology. Many countries including China issue industrial technological policies to help industries gain long-term rapid development. Almost all the scholars and government officials recognize the importance of the industrial technological policies, but it lacks in a systematic study of industrial technological policies and the effects they bring. Through the past researches on the technology and industrial policies, most focus on overall analysis and effectiveness of industrial policies. The scholars prefer studying the organizational and structural policies when they refer to industrial policies. In terms of technology, technology innovation and import which help promote technology get attentions and have perfect theories correspondingly. But on the industrial technological policies, most studies focus on the whole technological policy system a county has or the effects a single industrial technological policy brings up. The past researches do not relate the industrial technological policy with the other parts such as technology and performance, or they have too broad study scope and lack appropriate theoretical foundation. Furthermore, when it refers to the empirical research, most studies have been limited in one single industrial technological policy and use one single indicator to judge whether the policy is effective. However, the development of the industry can be measured by many indicators, while single one cannot help to judge the effectiveness of the policy truly.This dissertation is set from the relevance between industrial technological policy and industrial performance. First will define and analyze the influencing factors of the industrial performance and industrial technological policy. The industrial technological policies will be classified by their function. Then will theoretically analyze how the policies of different kinds affect the industrial performance and following empirically verifies the performance the policies of different kinds bring. Based on these, the dissertation will expand by following. The definition and classification of industrial technological policy comes first. The acting mechanism than comes. The affecting process of industrial technological policy follows. The comparison between the industrial technological policy and other main industrial policies comes forth. Fifth is the empirical study. And to perfect industrial technological policy and give advices on promoting the improvement of industrial performance follows finally.Chapter I is the introduction which introduces the background the dissertation has, the theoretical and empirical meanings, the chapter structure and the study modes, and the’ innovations. This dissertation mainly starts from the relevance between industrial technological industries and industrial performance, which can help to supplement the theory of industrial policy. In China different industry has its relevant technological policy and achieves different performance, which will provide the empirical significance on the study of the relevance between industrial technological policy and industrial performance.Chapter II presents the literature review and theoretical foundation. Firstly, describe the relevant theories simply. Secondly, search the themes on industrial performance, industrial technological policy and relevance on the literature to realize the research status at home and abroad. Then summarize the study literature on the three themes. And finally evaluate the entire research status simply.Chapter III analyzes the correlated theories of the relevance between industrial technological policy and industrial performance. To define and analyze the influencing factors of industrial technological policy and industrial performance comes first, in which industrial performance is positioned in integration of economic, technology and environment performances the industry has, and in the mean time the technology policies are classified to fostering, normative and leading ones according to their functions. To analyze the necessity and economic environment that industrial technological policies have follows. Due to high cost and positive externalities technology development brings with other factors such as technology risks, it needs the government to take appropriate industrial technological policies. To analyze the basic content that how industrial technological policy affects industrial performance comes finally. As industrial technological policy directly affects industrial technological and then affects industrial performance, when establishing and implementing industrial technological policy the governments have to take the targets and pathways the policy has into consideration, and analyze the influencing outcome and scope with a relevant index system.Chapter VI analyzes the influencing course industrial technological policy has on industrial performance. This chapter carefully analyzes how policies of different kinds affect industrial technology. The fostering industrial technological policies enhance the whole level of industrial technology by pushing companies to innovation, even leading industrial innovation. The normative ones improve the technology level an industry has by promoting the diffusion of technology within the industry. And the leading ones drive the market players to establish and implement other technological policies. It also analyzes how policies of different kinds affect product&technology, industry and enterprise based on the life cycle theory. As industrial technological policy always has shorter life cycle than ones product&technology, industry and enterprise have, it causes the inconsistent life cycles, but the policies do extend the life cycles product&technology, industry and enterprise have.Chapter V is about the evolution of industrial technological policy and the outcome it has brought. This chapter will give detailed descriptions on the evolution of industrial technological policy China has. And the outcomes the policies have brought to Chinese industry will be judged by several aspects such as input-output relation, total factor productivity and high-tech industry.Chapter Ⅵ compares industrial technological policy with other industrial policies on performances. As the policies of different kinds are hard to distinguish, this chapter mainly analyzes the organizational, structural and distribution policies with their experiences in China after her reform and opening, and compare their performances with the one technological policy has.Chapter Ⅶ is the empirical analysis on the relevance between industrial technological policy and industrial performance, combined with the index system mentioned in Chapter Ⅲ including policy, industry scale, market structure, technology behavior and industrial performance. It targets "China’s Industrial Technological Policy" implemented in2002as an object, and study the different outcomes different policies brought to different industries. Shown from the empirical studies, the fostering policy in "China’s Industrial Technological Policy" has had a positive effect on the electronics&information industry, seen from its technology input, technology output, industrial scale and industry performance, which means the electronic&information industry has been growing after the implementation. The normative policy has other effects on the electric power industry, in that technology input and economic indicators don’t have significant change, but it has significant positive effect on industrial scale and technological indicators while it significantly reduces energy consumption and pollutants during electricity production. In the same time, the leading technological policy such as technology commercialization has achieved a certain effect. Technology commercialization has helped to expand transaction volume of technology market, and affected economic development positively.Chapter VIII refers the policy system China has, the whole system has to be improved to achieve a better economic performance. To enhance the relevance between the policy and performance, the industrial technological policies are to be implemented effectively in two ways, one from the adaption of the outside environment and the other from the improvement of the inside system. Firstly, the factors that hinder the implementation are being analyzed in law, tools, information and risks, and the solutions such as upgrading the innovation capality the entrepreneurs have, promoting inter-enterprise collaboration, lowering risks and making sound law will be conducive to help implement industrial technological policies effectively. Secondly, the importance of the normative policies should be recognized while the fostering ones should be given prominence to.This dissertation not only studies industrial technological policy from a new perspective which enriches and perfects the relationship between industrial policy and performance, but also classifies the policies and put forward a multi-index evaluation system in the course of the study. Theoretically the influencing process industrial technological policy has on industry and its performance is studied and has gained an idea that policies of different kinds affect industrial technology differently. The fostering policy helps promote industrial technology innovation, and the normative and leading ones directly or indirectly help the diffusion of industrial technology accelerate. These indstrial technological policies finally help level up the industrial technology, extend the industrial life cycle and improve overall industrial performance. In practice the policies have been evaluated on several industries. The empirical analysis on electronics&information industry suggests that the fostering policy has significant influence on R&D, industrial scale and performance. While the analysis on electric power industry shows the normative policy cannot influence all the factors significantly. The one on technology commercialization indicates that it does help the economy grow as a whole. With a certain role industrial technological policy has on the industrial development, there exist many deficiencies and need to perfect the industrial technological policy system in two ways, one from the adaption of the outside environment and the other from the improvement of the inside system.