Mechanism Of Policy Promoting The Innovation And Development Of Emerging Industry

How to promote the independent innovation of strategic emerging industries in Developing Countries is studied in the thesis. AS the completely market competitions disappear in the new global competition condition. Therefore, the government participation and its promoting policy are very important for the development of emerging industries, which is the research background and motivation of this thesis.With the perspective of co-evolution of technology, market and institution, the change of cognitive is described as the line of analyzing the evolution process. Based on this, the role of policy and its mechanism to promote the development of emerging industries’innovation are discussed. Based on the investigation on both theoretical and practical aspects of the development of emerging industries, it was found that the development process of emerging industries is co-evolution of technology, market and institution, and that their interactions decide the emerging industries" track, performance and development trend. Essentially, this kind of co-evolution is also the process of cognitive changes. The innovation development of emerging industries is the process of the promotion and expansion of cognitive.This study found that,1) in the life cycle of industrial development, especially in the introduction phase, radical technology innovation drives the segments of demand, and the development of demand cognitive reversal accelerates the technology innovation;2) In the development phase, the development of technology cognitive and demand cognitive led to the development of institutional cognitive (widely accepted, common rules, et al.), thus contributing to the institution transformations and new institution formation, which further improve the technologies" development.3) In the mature phase, the standard rules are developing step by step, which guide the emerging industries" technology and market. This process also led to the improving of institution cognitive and co-evolution of technology, market and institution. Based on this analysis, it’s proposed that policy plays the role of improve the development and innovation of emerging industries through the change and strengthen cognitive to promote the interaction of technology, market and institution.Based on the theoretical analysis, this article studies the emerging industries in developing countries. It’s found that, late-development countries have to follow the innovation path of developed countries because of the blockade of cognitive (technology, market and institution). In this situation, they have to encounter two barriers:technology lock-in (technology and patent) and market control (band and channel), which leading to the dependent innovation where the most important barrier is that they cannot build up the product development platform and cannot achieve dominant design. Therefore, in developing countries, the innovation of industries cannot be completely dependent on the path of introduction-learning-catching up. So the most important point is to develop the cognitive (or establish strategic cognitive), and throughout the whole industry life cycle.Such a policy plays role as following:1) establishing the "protective market space" to enhance the practice chance of new technology; building demand cognitive on local market in introducing phase:2) building up the product development platform and setting up the invisible, visible, external support system in the beginning phase; guiding and encouraging the development of technology, market cognitive;3) implementing dual-track in development phase. On the one hand, building the institution condition to regulate local technology and market, promoting firms to participate in making global market rules and trade rules, guiding the related subject to identify with local productions’ technology, market and institution cognitive thus to break the multinational firms’ cognitive lock; On the other hand, gaining capital to support the local technology research and production development;4) strengthening global pricing ability, consolidating the cognitive of indigenous technology, market and institution in mature phase. All of which, to guide and support the product platform is especially critical.Finally, the wind energy industry in China is discussed. It is proposed that:1) During1980s to2003, the main reason why the market share decreased is that the government did not guide the demand cognitive of local market in introducing stage;2) Since2003, the development of wind energy’s technology is related to the market-driven policies which enlarged the market cognitive and established the foundation of local product development platform and break down the technology barriers. So we have chance to achieve independent innovation. However, due to the lack of polices to further promote the technology, market and institution cognitive, China’s wind energy industry hasn’t broken the multinational product dominant design. The independent innovation is still meeting with obstacles.It is revealed that developing countries should establish leading strategies to change the cognitive hysteresis in strategic emerging industries. The strategy should focus on:1) guiding the local market demand, setting up complementary infrastructure to support the product development platform, helping firms achieve their own product’s dominant design;2) promoting and strengthening technology, market and institution cognitive, guiding and controlling the globalized market.