Heterogeneity And Industrial Growth

In nowadays society, the strategic environment which the enterprise faces unceasingly changes now; we can see it from the fact as bellow:faster changes of the science and technology; rapider industry development; fiercer market competition; higher requirement of transformation of the economic growth and the sustainable development on the angel of the enterprise development and so on. Under such background, the paper is trying.to study on the growth of industries; probe into the factors that affect the growth of industries, and propose related policy suggestion to industrial growth.Heterogeneity among enterprise provides a new angle for us to study industrial growth. Enterprise as the industry participants, Constitute the basic unit of the industry and microeconomic foundation. The industrial growth can be considered as the aggregation of all kinds of enterprise operation and the total production relations. The different hypotheses to Industry participants will directly affect the research method and analyzing conclusion of industrial growth, and industry policies as well. For example, under homogeneous assumptions industry participants, the enterprise products and services are homogeneous, and price competition is the main way of industry competition. Although price competition can improve the welfare of the consumers, but also often caused the invalid configuration of resources, and at the same time, the competition is redistributed market share in the original market demand. Therefore, the competition is a "zero-sum game". Under the heterogeneity assumptions, product service and market strategies of a enterprise are different, through finding the ignored market demand, or through mining the new opportunities of market riche, the enterprise differentiate its service and strategies, providing valuable products while meeting the market demand. The non-price competition not only promotes the utility of consumer but also enhance the profit of the whole industry. That is to say, this is a situation of "Positive Sum game" Recent years, the china industry development has reached a new level. Meanwhile, the industry problem raises a growing attention on the driving power of industrial growth in academia. Many researches show that innovation, human resource and investment is significant for industrial growth, but there is also dispute among these factors. The dispute is mainly focused on the uncertainty of the driving power to the industrial growth. For example, when studying on the relationship between innovation and industrial growth, we can get different conclusion from different sample data. The consequence is caused by variation from different sample on one hand, for the other hand, it is caused by the different features of industry. The problem from the existing literature and method provide the necessity for this dissertation to study industrial growth.In fact, there are two problems in the literature that are study the relationship between the industrial growth and heterogeneity. Firstly, existing research has not build up a convincing theoretical framework that tells what makes industry heterogeneity and how it works. Secondly, there is not sufficient proof of empirical study support the conclusion of heterogeneity. Most research about heterogeneity is described with conceptions and words like "unique","difficult to imitate","impossible to replace" and so on. These words are not convincing. Under these problems, the dissertation takes the industrial growth as the target and explains the origin of heterogeneity with different dimensions in order to the relationship between heterogeneity and industrial growth. Therefore, the dissertation is trying to build a framework of industry theory with empirical study and theoretical study as well.The introduction of heterogeneity conception combines the methods of economics and strategy. The methods provide an important foundation and logics. The dissertation dedicates to the unity of theoretical and empirical study. Based on the methods, the dissertation traces the origin of heterogeneity from corporate homogeneity, and compares their differences. Considering about the problems existing in literature focused on relationship between the heterogeneity and industrial growth, this dissertation conducts the empirical analysis with sample data to find out where heterogeneity comes from and how heterogeneity works in so to constitutes a research framework. At last, we will go further to extract the theme of the dissertation and propose the beneficial policy for industrial growth.Chapter1is the introductory, which introduced the research background and proposes research subject of the article, namely how heterogeneity influenced enterprise growth. Then this chapter introduced the research methods, the research logics, the whole framework as well as possible innovates and deficiencies.Chapter2gave a summary of literatures. In an industry, the fundamental unit is the single enterprise, an industry may refer to the nature close or type close group of enterprises, therefore, the industrial growth may return to original state into enterprise’s growth. The enterprise heterogeneity affect the corporate growth and thus to the whole industry. This chapter is to provide proof and methods for the further study of the dissertation. There are five sorts of theories of corporate growth including classical economics enterprise theory, new classical economics enterprise theory, the new institutional economics enterprise theory, evolutionary economics enterprise theory and endogenous growth theory. The classical economics enterprise theory and new classical economics enterprise theory cannot give an accurate explanation that where the profit comes from. This has caused the polarization of modern enterprise theories. Based on the different explanations of uncertainty, the new institutional economics enterprise theory the enterprise growth is endogenous, while the evolutionary economics enterprise theory and endogenous growth theory insist the enterprise is exogenous. The proposal of heterogeneity is mainly under the endogenous hypothesis. However the discussion of heterogeneity is lacked of empirical evidence and this make it sensible for us to make a further study.Chapter3explains the relationship between heterogeneity and industrial growth from statistical and empirical angle. To make the relationship clear, we have to quantify the related variables and compare the difference. Through the analysis of sample data, we find that the input and performance are positively related in every industry. But the relationship between input and output shows varied natures. That is to say, different industries show their different heterogeneities. This makes us quantify the heterogeneity under the methods of the other subjects and find out the relation between heterogeneity and performance in each industry, the results show that the larger the heterogeneity is, the better the performance is. We might think that heterogeneity is the outcome of uniting all kinds of resource of the industry participants, and thus they avoid the price competition and "zero-sum game" under the circumstance of homogeneity hypothesis. Thus, the industry with lager heterogeneity could meet the market demand and grow up fast though differentiation of market strategy and service.Chapter4has constructed a theoretical framework that related to industry heterogeneity to explain where heterogeneity comes from and how to keep on. In Chapter4the results of empirical study from high-tech enterprises shows that the lager the heterogeneity is, the better the performance is. And we induce that industry heterogeneity would help to avoid excessive competition which is under homogeneity hypothesis and thus promote the profitability of whole industry. Chapter4conducts the analysis of this question from two parts. The first part is to analysis the origin of heterogeneity and how it keeps on under the theoretical angle, trying to make the conception of heterogeneity more clear. The second part is to analyze the relation between industry heterogeneity and industry performance.Chapter5take the electronic information industry as an example, based on the empirical study of Chapter3, analyze the industry heterogeneity with the theoretical framework of Chapter4, and find out that electronic information industry has a property of innovation heterogeneity during innovation, human capital and physical capital. Thus, why innovation has a high performance than other input factors in electronic information industry? And how does the heterogeneity of innovation insist? While answering these two questions, we even further analyze the problem of growth of the electronic information industry and give the policy suggestions.Chapter6take the new energy industry as an example, based on the empirical study of Chapter3, analyze the industry heterogeneity with the theoretical framework of Chapter4, and find out that new energy industry has a property of human capital heterogeneity during innovation, human capital and physical capital. Thus, why human capital has a high performance than other input factors in new energy industry? And how does the heterogeneity of human capital insist? While answering these two questions, we even further analyze the problem of growth of the new energy industry and give the policy suggestions.Chapter7take the biological and medical industry as an example, based on the empirical study of Chapter3, analyze the industry heterogeneity with the theoretical framework of Chapter4, and find out that biological and medical industry has a property of physical capital heterogeneity during innovation, human capital and physical capital. Thus, why physical capital has a high performance than other input factors in the biological and medical industry? And how does the heterogeneity of physical capital insist? While answering these two questions, we even further analyze the problem of growth of the biological and medical industry and give the policy suggestions.Chapter8is about the epilogue. Based on the study of previous chapters, we deepen the theme and goals of the dissertation, propose the research conclusion and introspect the shortcomings of our study, and looking forward of future research. We can get several conclusions as blow. Firstly, the heterogeneity of industry input is highly related to the quality but not quantity. Only focus on the quality of input factors can the production efficiency be promoted and dedicate to the healthy growth of an industry. Therefore, we should combined with the scientific concept of development, Emphasize the elements quality of industry input, and change the growth mode from quantity mode to quality mode. Secondly, varied industry has different input heterogeneity which shows that the input factors of industry have varied performance to output. The consequence is caused by different industry feature, industry fracture and industry environment. Thus, the government and related departments should consider about the characteristics of different industries when making industrial policies. Meanwhile, the industry participants should make decision with their conscious activity based on the industry characteristics and enhance the production efficiency. Thirdly, at the present stage, the emerging industries of strategic importance are not that mature in our country. Using different heterogeneity to promote different industry may work in shout run but may fail in long run. During innovation, human capital and physical capital these three main input factors, innovation may be superiors to the other factors. Innovation will better match the scientific development views and good for the optimization and upgrading of industrial structure. Therefore, relevant department should encourage industry innovation and make a nice environment for it. The industry participants should stand by the long run profit of enterprise-enhance the ability of self-innovation and create the competitive advantages.