Path Choices On China's Dynamic Comparative Advantage By Innovation

China's main industries, like manufacturing industries, have developed quickly with more and more export since Open Door. So, they began to have comparative advantage in the face of fierce international competition. However, the comparative advantage is built on the abundant labor resources and primary elements. Export growth and economic development are difficult to extricate themselves from the extensive mode of development. Therefore, the realization of leading industries owning dynamic comparative advantage will be the only way for the development of China.The article researched the reasons, mechanism and path for the dynamic comparative advantage on China's manufacturing industries data from 1992 to 2005. At present, the capital element is still the main factor for leading industries' dynamic comparative advantage. But the element of independent innovation has begun to play an increasingly important role and in the future will play a leading role. So, independent innovation is the essential path for China's dynamic comparative advantage.In order to enhance the ability of independent innovation and get dynamic comparative advantage, the main industries could make their way by the following three approaches: First of all, promote the improvement of innovation ability through industrial development and form the interaction between industrial development and independent innovation. So we should optimize industry capital structure, focus on cultivating high-tech industries, establish the main R&D industries and foster their own export brands. Second, keep eyes on human capital that has played an important role in the process of independent innovation. Producing human capital accumulation has become a direct way for dynamic comparative advantage and the R&D human capital will be access to the ability of independent innovation of China. Finally, the government plays an active supporting role in the independent innovation. Government can effectively improve the capability of independent innovation of the industry through the optimizing of R&D investment and cumulating basic human capital.China's experience shows that a country's export-led industrial transformation of comparative advantage plays a decisive role in a country's economic growth. China's economy remains in the process of transition and has had a little of dynamic comparative advantage. With the development of China's independent innovation capacity, China is bound to achieve the transition of dynamic comparative advantage, which will be the necessary condition for China's rapid healthy and stable economic growth in the future. Through innovation, achieving leading industry's dynamic comparative advantage also will be the inevitable choice for our national long-term stable welfare.