The Study On Innovation Of Chinese Publishing Industry System

After1978, China entered into the transitional period. Different from other countries and regions, China’s transition is firstly transformed from traditional planned economic system to market economy, and makes the market mechanism play a fundamental role in the allocation of resources; simultaneously, it has been accompanied by "a profound transformation process" of politics, culture, social, ecology and many other aspects. In the process of transition, the change of the economy, politics, culture...etc. inevitably requires corresponding changes in the publishing industry, which is also an integral part of China’s transition. This paper considers that industrial property is the natural property of the publishing industry, which is fundamental, basic and essential; the ideological form of dissemination content has formed the social property in the publishing industry, which is cultural property and political property. These properties are derived out of the three major functions of the publishing industry, namely:advocacy-oriented function, social services function, business function. Publishing industry is different from "manufacturing" which is rigid as a pure factory functions, and different from "services "which provides the service directly. Publishing industry’s trait is that the "real goods" has low value,which the content has high value. Publication is a cultural product so that consumers must have a certain level of education; published commodity has the characteristics of public goods; publication is a commodity contains copyright; and there are remarkable differences between publications.In China, the change of the publishing industry’s system should be seen as a part of the reform of the political system. In general, system change is selected by the state which is viewed as a system subject, and the state plays the role who determines the system, and is the main source of system supply. In this case, the publishing industry must follow the law depended by the path and lead to gradual institutional change under the guidance of the government. Therefore, to research the media economic must study the environment of China’s media system at first, for the environment of system is the constraint conditions of media economic research. Overall, the publishing industry in China mainly consists of the access, the content and the property right system.The current system of Chinese publishing industry can be traced back to the founding of People’s Republic of China. At that time, the power of establishing and growing the strength of state-owned publishing house, as well as the socialist transformation to the private publishing industry (including publishing, printing and distribution industry), had a huge impact on the later publishing system. After1978, Chinese society entered into the period of transition, however, what path this transition process depends on is just the planning system which the fundamental characteristic is "State running". within30years, the reform of China’s publishing industry deepen gradually and experienced three stages, that is incremental development, structural optimization, and deepen the reform.under the impetus of succession reform of the economic system, political system and cultural institutions, The purpose of the reform is to liberate the productive forces, develop the productive forces, since the reform and opening up, the nature of institutional change of China’s publishing industry, is also for the liberation of the shackles of the old publishing system productivity, thus for the prosperity of our country publishing. Overall, there are two aspects of the innovative features of China’s publishing industrial system as follows:First, taking mandatory changes as the main way and induced changes as supplement, and a combination of both; Second, the mode of changes of China’s publishing industrial system is progressive. In the past30years, interest-driven is the main driving force of the publishing industry system of innovation. Potential drivers of the profit is the fundamental driving force of institutional innovation in the publishing industry, however, the institutional innovation of the publishing industry are often subject to a number of factors, such as the main level of competition, technical factors, the constraints of the transaction costs and the government’s administrative intervention and so on.My article is from the theory of Commons, and divides the trading activities into three categories, including market transactions, management transactions, or transactions within the enterprise, and government transactions, which are correspond to three basic institutional arrangements in the modern society, namely, markets, businesses and governments. There is a close relationship between this three kinds of transactions and three institutional arrangements. First is the relationship between market transactions and transactions within the enterprise. To select market transactions or transactions within the enterprise is decided by the comparison of enterprise’s independent production costs and transaction costs on the market. Second is the relationship between the trade within the enterprise and government management, which mainly represents that government is for personal choice and public choice (that is, non-personal choice). The last is that there is an alternative and complementary relationship between government and market. On one hand, market failures are in that government can replace the market because it can save a certain amount of transaction costs, but on the other hand, the government would produce costs by itself, such as running costs and economic inefficiency caused by corruption.My research paper is divided into seven chapters; each chapter’s main content is as follows:The first chapter is an introduction about the background, purpose and importance of the subject. It summarizes the relative current research situation and presents the research logic, methods, innovation points and shortage. It also analyzes the opportunities and challenges enterprises are faced with in the publishing industry as well as the government regulation on the publishing companies.The second chapter demonstrates the structures and characteristics of press and publication system in China. Firstly, in this chapter, the author summarizes the connotation, functions and economic features of the press and publication industry. Press and publication industry possesses both industrial and ideology attributes which determines that this industry has functions which include publicity, community service and commercial operation. As a kind of civilization commodity and public goods, publication also has the characters of copyright and differs from one to one. In China, press and publication system consists of entrance, content and property right. Ever since the reform and openness, the system goes through obvious periodicity, from the stage of incremental development, structure optimization to the stage of system reform.The third chapter is the analysis of the triangle system framework and framework of China’s publishing industry. This chapter provides the analytical framework of the transformation of China’s publishing industry innovative system, namely triangular analytical framework. Game analysis framework was introduced on the basis of the institutional triangle, to establish a game analysis framework, that government and enterprises delegating powers and benefits in the system innovation of publishing industry. The model proved that, if profit handed over to the state was controlled by the government, the result of corporatization was that government to reduce subsidies to enterprises, and to increase revenues. if profit handed over to the state was controlled by corporate increasing the rights of managers profit distribution will result in government subsidies reducing, and at the same time revenues increasing. It means that whether the profit control is in the hands of the government or publishing companies, improving the proportion of companies as well as the proportion of denationalization is able to raise the level of profits paid and reduce government subsidies to enterprises, and raise the level of social welfare.Chapter Four aims to discuss the innovation of China’s publishing industry system from the perspective of business management. First, this chapter describes the experience in the publishing industry of the Western developed countries. In the long process of development, most of the foreign publishing companies have established a modern enterprise system, in which a main form is corporate system. Then, the chapter analyzes the problem of transaction cost on the management of China’s publishing industry. As is known, the conversion of most of our business publishing agents was driven by the government, and the traditional concept and management model led the conversation to a mere formality, so the internal transaction cost is too high. Third, the chapter explores the innovative path on the management system of China’s publishing industry. It argues that the transaction cost has a direct impact on the market competitiveness of enterprises. So it is necessary for the publishing companies in a complex market environment to promote their internal market, to reconstruct the management mechanism, to reduce the inner transaction cost, focusing on the development of quality. Finally, the chapter makes some cases study, taking the examples of Guangdong Publishing Group, the Reader Publishing Group, Beijing Normal University Publishing Group.The fifth chapter is the innovation of the market mechanism of the publishing industry. Firstly, it explores the goal selection in the development of China’s publishing industry. Despite the differences, the publishing industry has much in common with other industries, especially in the choice of establishing market-oriented development goals. The practice proves that the market-oriented path of development is conducive to the development of China’s publishing industry. This chapter also discusses about the market basis of the system innovation in publishing industry, i.e. the foundation of the market system innovation lies in a relatively free competition market, which is a necessary condition to cultivate qualified market participants. With the complement of the institutional triangle, approaches to the market system innovation are as follows:to cultivate competitive market subjects of the publishing industry, to improve the competitive publishing market, and to develop new ways of transaction in the publishing market.The sixth chapter is the innovation of government regulation system in publishing industry. First, it points out the path-dependence in the change of government regulation system in publishing industry, that is, publishing industry is characteristic of path-dependence not only in the guiding ideology but also in the mode and content of regulation. Then, it argues that the government should follow the rules of the market and adopt categorized regulatory principles to promote the digital transformation of the publishing industry. As for the specific systems, this chapter illustrates the innovation respectively from regulatory model, admittance system, examination methods and market regulation.On the basis of analyzing the game between government and enterprises, Chapter7also points out the opportunities and challenges publishing enterprises are faced with as well as the government regulation over the publishing industry. It emphasizes that except ensuring the national culture safety and the leading status of the ruling party, the government should also innovate the ways in regulating the publishing industry to improve the efficiency of regulation.The innovation of this paper includes the following aspects(1) Build a institutional triangle-analysis framework aimed at the publishing industry, and bring non-governmental organizations and intermediate agencies into the theoretical framework. Starting from the theory of Commons and based on the theoretical triangle-analysis framework, it discusses the institutional innovation of the publishing industry respectively from the perspective of government transactions, corporate transactions and market transactions. In the intermediate zone of the government, enterprises and markets, however, there are two other important organizations or intermediaries-NGO and market intermediaries. In the publishing industry, non-profit associated agents, on the one hand, can be able to contact and mobilize the publishing business to achieve self-regulation and collaboration; on the other hand, facilitate communication between the government and the publishing industry, thus exerting more influence and function than that the government exerts in its direct management. So the paper points that, first, the government must strengthen the self-management of associations in the publishing industry, promote the establishment of the various NGOs, erect an intermediary platform among the government transactions, market transactions, and business transactions; second, enterprises should enhance their sense of market competition, use a variety of market intermediaries to reduce their operation costs, improve the operation management and efficiency.(2) Put a suggestion that the government regulation mode in the publishing industry should be reformed from the old dual-mode to a tri-level mode, the former one is composed of two levels, the regulator and the regulated. This paper suggests that a tri-level mode be set up in regulating the publishing industry:the first level is the Chinese Communist Party committee who is in charge of ideology, but should not directly intervene the publishing industry by the ideology, the second level is the specialized government regulatory department of the publishing industry, and the third level is the publishing industry association. Thus, the management function can be returned to the publishing industry, and the two-government state of it can be also changed. At present, the Association of China’s publishing industry is just the spokesman of the government departments, with a serious administrative tendency and far away from the role of industry management. In the long run, the government administrative departments should accelerate the pace of transforming the government functions from direct management to intensive supervision, to spare more space for the operation of the publishing industry associations. The administrative departments of the publishing industry on one hand, supervise the market and regulate the industry, on the other hand, shift many micro, technical and transactional functions to the associations, who can undertake such functions the government used to exert as industry statistics, release of industry information, rectification and standardization of the market, etc. Hence, the administrative departments and the industry associations can be distinguished by their respective roles in system and institutional settings, and the legal status of the associations of the publishing industry can be established.(3) Based on the institutional triangle, a game-analysis framework involving delegating power and benefit about which government and enterprises are concerned further expands the institutional triangle in depth. The game-analysis framework between government and enterprises also provides a solid mathematical basis for analyzing the institutional triangle, making the logic of analysis more precise and the economic intuition more direct. In light of the latest game theory, it finds that the government-oriented marketization, including corporatization to establish modern enterprise system and improving the proportion of state-owned economy, significantly improved the income of the government and enterprises. At the same time, the game-analysis framework also shows that in the process of reforming the publishing industry, improper corporate rent-seeking behavior has led to unnecessary loss of social welfare. The conclusion of the mode has also proved that marketization helps to improve the interests of government and corporate. In practice, under the premise of ensuring national culture security and the leading status of the ruling party, the ways of regulating the publishing industry should be innovated to improve regulation efficiency.