Institutional Analyses On Technological Innovation

This paper focus on such institutions which determine technological innovation performance and ,more particularly, on S&T system of China. It consists of three parts: The first part builds a theoretical framework for whole paper; the second part and the third part apply the framework to deal with China problems. Economics textbooks teach us that market matters. So naturally, the author抯 first step is to explain why market is important but not enough for technological innovation (Chapter 2). Following economics traditional wisdom, three alternative solutions are right there to help market. The author classifies research activities, which such solutions regulate, into technology and science and concludes that priority competition is important for science and intellectual property matters for technology (Chapter 3 and Chapter 4). Then die author uses the former theory to research Needleham problem and find that institutional differences induced China behind the western since Industrial Revolution (Chapter 5). In the end part, the paper turns background to modem China. Traditional planning system conflicts with technological innovation activities (Chapter 6& Chapter 7), and that is why technological innovation performance is poor in all former socialist country. Since 1978,market opportunity extended rapidly. As a result, many enterprises around academies and universities came into being while R&D system experienced an unhappy shock (Chapter 8). But high transaction costs of technological knowledge prevent S&T system from final success (Chapter 9). Finally, the author presents a policy portfolio and a further research agenda.