Research On Industrial Organization Policy In The Hi-tech Industry Based On Self-organization Model

Hi-tech industries are very important in overall national strength, economic competitive power and scientific and technological strength of a country. Facing fierce competition, how to develop them has become an urgent problem required to be resolved. The result, obtained from statistical analysis of the papers on developing hi-tech industries, shows that hi-tech industry organization policies have been seldom studied in literature. Therefore this paper mainly investigates the approach of using industry organization policies to develop hi-tech industries.The goal of industry organization policies is optimum allocation of resources within industry, and their core problem is the relationship between scale economy and competition merit. According to monopoly (competition) degree, all industry organization policies fall into two broad classes: antimonopolistic policy and direct regulation policy. So to establish industry organization policies should be based on the relationship between monopoly (competition) degree and developing hi-tech industries, which has not been studied well in literature and has been researched in this paper.This paper has tested three hypotheses as following:(1) The relationship between monopoly (competition) degree and developing hi-tech industries is not linear.(2) When the interrelation between monopoly (competition) degree and developing hi-tech industries plays a leading role, there will be synergic variation between them, of which developing hi-tech industries is serial variable and its value indicates the advancing degree of industrial organization.(3) There are sensing parameters which can be used to solve the system problems.This paper starts from concept of technology, defines hi-tech by sorting technology, and sums up definitions of hi-tech industry to show that defining hi-tech industry is one of difficulties in studying hi-tech industry now. After discussingdevelopment characters of hi-tech and hi-tech industry, the author chooses profit ratio and productivity as evaluating indicators of developing level of hi-tech industry by comparing lots of famous empirical research and investigating the relationship between performance, profitability and productivity.This paper defines productivity, compares measure indicators of productivity, builds econometric model through the Stochastic Frontier Analysis, and measures productivity and profit ratio of hi-tech industries in China. The results show that it is necessary using the Stochastic Frontier Analysis; capital input is the most import factor in developing hi-tech industry which increases returns to scale.Following measuring concentration ratio of hi-tech industries in China, this paper builds theoretical model about the relationship between concentration ratio and profit ratio. The empirical research results show that the relationship between concentration ratio and profit ratio is weak correlation, nonlinearity and discrete. Then the author point out that profit ratio can evaluate not only developing hi-tech industries but also monopoly (competition) degree.The results of the empirical research on the relationship between concentration ratio and productivity, productivity and profit ratio of hi-tech industries following relative literature, show that the dynamic and nonlinear relationship between monopoly (competition) and developing hi-tech industry could be investigated by using self-organization theory, which is a new research approach, instead of traditional static and linear methods.Based on upwards researches, this paper tries to apply the theory of self-organization (especially synergetics) to studying hi-tech industry organization. Organization and self-organization are described by mathematical formula, entropy and structure of all classes of system are compared, and the evolvement mechanism of industrial organization is investigated. Borrowing ideas from system dynamics, a self-organization model of industrial organization is set up. Multi-factor productivity and return on revenue are remeasured, and the order parameter of hi-tech industry system is determined by estimating the parameter of the system.This paper applies policy science theory to policy analysis. Through system simulation by dint of orthogonal experiment, the sensitivity of policy parameters is tested and several different plans are compared. At last, the author puts forward some relevant industry organization policies, including that the incentive mechanism of productivity should be perfected, the control mechanism should be set up, and a leading governing role to market structure should be well played by productivity.This paper points out that the policy thinking about promoting industrial organization to rationalization is that the market structure with efficient competition should be set up, in order to increase productivity. Efficient competition is the competition which makes social general benefit maximum and harmonizes with scale economy. Industry organization policies should make a feasible environment, in which industrial organization could vary the form of organization in order to optimize itself function and structure. And this process is the organizational innovation of industrial organization. Therefore the essential of organizational innovation is to optimize form of organization of production factors and to increase productivity.The main innovations of this paper are:(1) This paper uses unique research methods, which synthetically applies Industrial Organization, System Science, Econometrics, and System Dynamics into developing hi-tech industries. Multi-factor productivities of hi-tech industries are measured by using Stochastic Frontier Analysis. And the author applies orthogonal experiment into System Dynamics.(2) Through putting monopoly (competition) and developing hi-tech industries into one system, the results of system analysis show that monopoly (competition) could not control developing hi-tech industries, but developing hi-tech industries could control monopoly (competition) which has retroaction.(3) This paper regards organization as system and the process of industrial organization as evolutionary process of industrial system. Borrowing ideas from system dynamics, a self-organization model of industrial organization is set up. Through system simulation, the sensitivity of policy parameters is tested and several different plans are compared. At last, the author puts forward some relevant industry organization policies.