Institution Economics Analysis Of China High-tech Industry

In the second half of the 20th century, high-tech industry in rapid rise has become an important pillar of growth and powerful engine of world economic growth. In today's world, every country's government is running to develop high-tech and high-tech industries, giving priority to foster the development of high-tech industries. Not only developed countries view high-tech industry as the primary factor to raise labor productivity and to sustain economic growth and national prosperity, but also a number of developing countries increasingly identify it as the strategic focus for development and new economic growth point to a rapidly changing national state of the economy, so as to enhance the comprehensive national power and international competitiveness.Nevertheless,since the reform and opening up, China's rapid growth is an extensive pattern of growth based on the overuse of energy, water, and mineral, as well as serious pollution. Accordingly, many experts are worried that China would suffer from a long run recession due to constraints of resources if without changing the strategies of growth. Therefore, it is urgent to develop the high-tech industries, in order to change China's growth mode and increase China's sustainable development ability.China's high-tech industry, however, is less developed compared to the developed countries. This difference leads us to figure out the reason for it. Institutional economics argues that the prime power of economic development is institution, rather than technology. This dissertation states that the obstacle of China'high-tech industry is not the technologies per se, but rather the institutions. So it is necessary to find the right approach to develop high-tech industry from the institutional reform.After deep analysis of institutional factors for the development of high-tech industries, using the principles of institutional economics with sociology, historical studies, qualitative analysis with a combination of case studies, comparing China and foreign development models , this dissertation works out a number of conclusions and recommendations, thereby provides a theoretical basis and practical support for China's high-tech industrial development. Specifically, our statement is as below.Firstly, the establishment of an efficient system of property rights is the core of development of high-tech industries. Technological innovation is the only way for the revitalization of Chinese enterprises, and intellectual property rights can play in which the role of what may be a change in the unknown variable, but it may bring attention to the interests of the right to attach importance to the rights and interests acquired directly related to size, this should be a most general economic and social patterns. Efficient system of property rights as the core system of innovation can help to reduce market uncertainty, tend to curb opportunistic behavior, thus reducing transaction costs, promoting technological progress.Secondly, establishing a modern enterprise system, and incentives play is a prerequisite for the capability of independent innovation. High-tech enterprise has been viewed as the knowledge-based industries. High-tech enterprises in the fierce market competition are generally employed by young, well-educated, with high expectations and the flexibility of managers and professional technical staff. These knowledge-based employees, is technological innovation and a major force in product innovation is the driving force for innovation. Incentives and therefore the question of these people are very important.Thirdly, only in the case that the informal system of coordination of interaction works well altogether with the formal system, the goal of independent innovation enterprises will be achieved. In this paper, the analysis not only emphasized the formal system, but also stressed the importance of the informal system. Supply system in China and the innovation process, the Government is the main key. The Government's institutional arrangements have a decisive role. Therefore, China's high-tech industry , system innovation should be the path-based led by the government. Related to the development of high-tech industries and the institutional arrangements, including both scientific and technological system, education system, enterprise system, investment and financing system, a formal system of industrial distribution system also covers the socio-cultural, ideological, and the informal system. High-tech industries can not develop without a formal system and informal system, the role of them is both quite important. Then the two institutional arrangements to coordinate the system in promoting the development of high-tech industries can truly play the role of technological innovation to realize.Fourthly, we should find the balance between role of the government and the market system for innovation in the high-tech industries, based on the principle of minimum transaction costs. In this paper, the role of technological innovation and the government's guidance are both emphasized. The Government-led model of the system of innovation does not exclude the role of market mechanism. We need to establish an effective coordination mechanism of choice and to enable resource optimal allocation of economic and rational principles and the principle of minimizing transaction costs, and strive to explore balance of the government and the market.Fifth , we take the distinction between without institution and efficient institution,and analyze their impact to high-tech industries. So we due the high-tech industry underdevelopment in China to the constraints of the system in two aspects above. While the former refers to the lack of appropriate support for technological innovation and high-tech industry development system, the loss of these key systems makes high-tech industries underdevelopment, making it difficult to sustainable development, the latter refers to the institution in accordance with the needs of the development of high-tech industries could not be well implemented for various reasons.Sixthly , high-tech development has its own unique optimal path of technological innovation and industrial development. Accordingly, at different stages of development of high-tech industries also show a different optimal development strategy. This dissertation studies the development of high-tech industries in a dynamic process in various stages needing to adopt different strategies. We emphasizes that the instantaneous optimal policy may not be compatible with the development of long-term optimization, and even short-term optimal strategy may lead to the "path dependence"trap, leading to the lagging long-term development.This article is structured as follows: chapter I, the introduction takes an overview of the full text of the introduction of the research background , significance, methods; the chapter II introduces a view of economics and methods used in this paper; chapter III focuses on in the on the relationship between high-tech industrial development and institutional factors, in order to stress the importance of institutions in the development of high-tech industries; the chapter IV is devoted to the specific development of China's high-tech industry, system development and innovation from the perspective of the analytic process; the chapter V analyzes the Chinese high-tech industry underdevelopment from the perspective of two aspects, institutional deficiencies and inefficient institution, and analyzes the role of government and enterprises, in order to find the two corresponding reasons; Chapter VI of this paper approve the relevant conclusions by empirical analysis; Chapter VII and VIII, respectively, studies the cases of China and Western developed countries, in order to examines the difference between the Western developed countries and China's high-tech industries. The final chapter concludes and gives some suggestions.