Study On Industrial Clustering And Technological Innovation

Industrial clustering is a new trend of the current international economic development. Economy globalization, production factors specialization and division of labor, international competition and cooperation, together with strenthening of economy intercommunion and other factors between the countries contributed to the emergence of industrial clustering . On the contrary, idustrial clustering quicken up the global competition in the industry. Technology development strategies were adjusted in many developed countries to increase the investment in technological innovation activities to adapt to globalization competition in the market, and to promote the new global technological innovation activities. Nowadays, economic globalization and the dramatic changes in technology era, it is an important prerequisite for China to constitute the industrial development strategy and technological innovation strategy correctly to realize the object of catching up with the world and improving the international competitiveness. From the point of the industrial structure, we are facing industrial structural transformation and industrial upgrading. It is very important for China to choose the suitable dominant industries according to economic characteristics and pay more attention to development so as to form the international competitiveness. As far as the technical innovation, the fragmentation of technological innovation system is still very serious in our country, and the system of national and regional technological innovation system has not been established yet. Because of the fragmentation of local governments, the lack of innovation in technology and collaboration, there are few big fruits of scientific research. The State-level Economic & Technological Development Zones that had been established in China had the characteristics of geographic dispersion, linking not closely with colleges and scientific research institutions, lack of technical cooperation and linkages between the various development zones, isolation between the development zones and lack of concentration advantages. This paper trys to explore the rules of industrial clustering and the relationship between industrial clustering and technological innovation. This would have important academic value for promoting the theory of industrial organization, corporating market research and industrializing the technological innovation. On the other hand, this would form a guidline for changing Chinese industries and improving the level of technological innovation.Shanghai is selected as the research object of industry clustering and technological innovation, manufacturing industries are chosen as the major industry.It is found out that phenomenon of clustering exists in industrial development and technological innovation in Shanghai. The main research method in this paper was econometric model analysis and the analysis methods were game theory. And the data used were mainly from the "Shanghai Statistical Yearbook", "China Statistical Yearbook", and "Science and Technology of China Statistical Yearbook".This paper, revolving in the main center line of the relationship between the industrial clustering and technological innovation, the content were extended in three aspects including technology spillover and technical innovation of the industrial clustering , cooperation and technological innovation of industrial clustering , performance and technological innovation of industrial clustering . The paper was divided into five chapters. The first chapter was introduction, including the research background, the corresponding theory and progress in industrial clustering and technological innovation, the current status of industrial clustering in China. The second chapter dealt with the effect of the industrial clustering and technology spillover on technological innovation, the relation between technology spillover of industrial clustering and technological innovation through theoretical model and analysis the effects of technology spillover on technological innovation and measurement were mainly discussed empirically. The third chapter includes the industrial clustering, technology trade, cooperation and technological innovation. The effect of industrial clustering and technology trade on technological innovation and the relationship between industrial clustering , technical cooperation and technological innovation were mainly discussed. Besides, this chapter also analysized the technology investment model under the conditions of industrial clustering and Shanghai time series data on cooperation in technological innovation were also taken in empirical analysis. Chapter IV mainly discussed the relation between industrial clustering, economic performance and technological innovation and analysised the dynamic relationship between economic benefit and technological innovation using the data from Shanghai. Furthermore, the relationship between the traditional industries and modern industries were analysized. Chapter V was main conclusions and policy recommendations. The policy proposals were generated through the analysis to promote industrial clustering, technological innovation. The government should play an active role in technological innovation combining with the actual conditions in China. This paper called for the establishment of national technological innovation system and gave the ideas to build technological innovation center around big cities.Through these studies, some conclusions are founded as follows: Industrial clustering and industrial technological innovation have certain correlation that can maintain a relatively stable trend. Industrial clustering is a dynamic changing process, when the industry clustering is in the course of evolution, these changes not only affecte the market structure, but also affecte the investment of technological innovation. When the industry clustering is at a relatively stable status, the strength of technology spillovers within the industry is the main factors that influence technological innovation. Industrial clustering technology could accelerate the trade, technical cooperation within and between industries and technical Union; industrial clustering could increase their networking and technological innovation and cooperation, reduce the cost of technological innovation, spread the risk of technical innovation; so that the industry technological innovation activities become more active. It is also found out through empirical analysis that the changing relations between agglomerations from technological innovation output are consistent with the clustering from the technological innovation investment. Relations of industrial clustering and technological innovation show differences between different industries. Industry profits and revenues clustering occure in a small number of industries, and this clustering is relatively stable. Industry clustering has not changed as time going on. The sales of new products with industrial clustering phenomenon and certain stability could also be found through technical innovation in the combined analysis. This phenomenon only exits in a few industries. For the majority of the industry, sales revenue of new product does not change significantly with time. And there are also differences about the relationship between industry performance and technological innovation. The relations of technological innovation with industries like food products performance and communications equipment, computers and electronic equipment manufacturing appears differently.The innovation of this paper lies in the following points: in the aspect of industrial organization theory, changes of market structure and that of corporate behavior were not necessarily linked in the agglomerating industry. The extents of technology spillover have great influence on behavior of the technological innovation of enterprises. It is believed from the traditional theory of industrial organization that, the market performance affects the behavior of enterprises, or enterprise market behavior would affect the market performance, there exists a close relationship. Howeverm, it is found out from anlysis that industry performance has greatly changed between different industries. However, the technological innovation of enterprises seems not change much. This paper proposed the state function of the market changes, in the variable of market structure,and the industrial clustering is a changing dynamic process, when the industrial clustering is not stable, the market structure and market performance change, then the changes would affect the market structure and market performance. When the industrial clustering is accomplished, and relatively stable, the market structure is relatively fixed, the enterprise behavior changes and market performance changes have no effect on market structure changes. With the adoption of state variables, the reason why the enterprises behavior, market performance have no effect on market structure changes is claritied. This is the theoretical innovation for this paper.The methodologies innovation lies in setting of the technology overflow performance indicators, which is an international problem. It is very difficult for these indicators to be analysed quantitatively. The industrial technology indicators to measure the overflow are designed in this paper to solve this problem. The indicators were proved by econometric model analysis and hypothesis testing and could be explained by Chinese data and the quantitative model from the real issues. The paper also expanded the Game model of enterprises cooperation and innovation on the conditions of industrial clustering. Industrial clustering variables and demand variables were added in the model. The model analysis shows that demand flexibility has a certain influence on cooperation and innovation. This conclusion is more suitable for the actual situation in China. The paper also constructed a space model of industrial clustering and technological innovation and the space variables were added in the model of technological innovation. Most theoretical analysis in the past assumed that space was a given and homogenious variable, and did not play a role in the process of the market economy. However, this assumption is not valid in the industrial clustering cases. Spatial variables are very important factors in the course of economic development through the industrial clustering analysis. Therefore, the space technology diffusion model about technological innovation and technological overflow were established by adding space variables in the technological innovation model.Industrial clustering affected the adjustment of the industrial structure, technological innovation affected the economic development, but the relationships between the two are never done before in domestic systems analysis and study. There are important theoretical and practical significance for Chinese industrial development and technological innovation discussing the relationship between them. This is the innovation on topic.Technological innovation was the main line in the paper. The relation between technology spillover and technical innovation, technical cooperation and trade and technological innovation, industrial clustering performance and technological innovation were studied in the cases of industrial clustering, forming a relatively complete theoretical system and sub-analysis of the framework. At last, the policy proposals of promoting technological innovation were given under the condition of industrial clustering. The overall logic structure and variety of relations were complete. Empirical analysis was added on the base of the theoretical model, this made the content of specific conclusions more reasonable. This was the innovation on the contents of study in this paper.In studying industrial clustering and technological innovation, three aspects such as overflow, elements flow and performance aspects are mainly studied on the relationship between industrial clustering and technological innovation. There are other factors, such as the competition in agglomeration, the effect of clustering market on technological innovation. These could be studied furthermore. The dynamic analysis model is helpful for studying the relationship between clustering and technological innovation in the study method. There are many variables absent in the analysis model for the limited data available in the analysis indicators. Data analysis limited in the data of Shanghai, without other data for regional comparison in the study object. These issues need to be done further.