Production Perforcance, Technological Innovation And Industry Upgrading In China

The past three decades has witnessed the acclaimed achievements in the industrial structure of China. The topic of this study deals with what is perhaps the most profound topic of all, the transformation of economic development models, which surely is one of the most crucial issues in economic research in China.The objective of this dissertation is to present a thorough reflection of the complex interaction between technological innovation and industrial upgrade, and to build a theoretical framework that may account for the internal mechanism of Chinese industrial sectors in a coherent way. A substantial part of the study is, therefore, devoted to delving into the variation of the production performance. Moreover, an extensive analysis is provided of some basic but nonetheless fundamental questions pertaining to topic at hand. These questions include:how to make it convincing to correlate production performance with technical innovation? How can a theoretical model be settled into the representation of the correlation? How to verify econometrically the interrelation between the invisible parameters? These questions will be addressed from different vantage points and theories, always in function of the theoretical framework for production performance in the industrial structure.The way the dissertation is briefly outlined as follows. Chapter 1 traces the problem back to its roots and introduces the methodology and core concepts involved, furthermore, illustrates the logic frame of the dissertation. Chapter 2 attempts to include the research outcome with regard to the issue at hand, and in particular elaborates on the notion of endogenous growth models and technical innovation theory. Chapter 3 constructs a technology-oriented model of industrial performance and upgrading which is based on vertical innovation model of medium goods. Chapter 4 sets off with an empirical survey of the classifications of production performance which have been suggested for various industries. Then a critical evaluation is given of the gross product function in industry. Together with these new empirical findings, the growth rate of product performance in distinct industries has been come into calculation. Chapter 5 decomposes the growth rate of production performance in diversifying industries, technological efficiency to the frontier, technological changes in time series, technological innovation effects respectively. In this chapter the interrelationship between variations has been additionally expounded. The results of the study are summarized in the conclusion in chapter 6 which might shed new light on industry development policy-making as well as policy regulations.The main contributions of this study have put forward the theoretical model to explicate the way industrial structure in China keeps sustainable and endogenous development motivated by technological innovations in a long term. Another contribution lies with the fact that a new decomposition framework on industrial production performance is developed adaptably to estimate the efficiency in the industrial structure in China.At the end of the dissertation, it suggests some interesting topics for further research. First, the approaches of industry evolution or mechanism of intra-firm learning would lead to the different theoretical models and result. Secondly, some important factors such as institution and economic globalization should be considered comprehensively into the analysis frame of production performance and technological innovations.