On Effects Of Scientific Research To Independent Innovation Based On Knowledge Complementarity

Today, technological innovations, particularly independent technological innovations play a more and more important role in sustainable economic development of a country, level of development of international trade, and international competitive capacity. To a great extent, a country’s capacity of independent technological innovation is contingent on its support on scientific research, especially on basic research. Especially worthy of attention, with specialization and division of labour deepening, and knowledge is divided worse and worse. And so marginal utility of the economy of division of labor is diminishing, but complementary economy become marked. In this paper,we investigate the effect of scientific research on independent technological innovation based on knowledgecomplementrity.Firstly, based on division in the areas of scientific research, this paper explores its effect on independent technological innovation and its supply mechanism from the point of view of its economic nature. The results show that the pure applied research and development completely do not need intervention of public policy and public investment, because the free market mechanism can address the problem. But as public goods, the pure basic research need intervention of public policy and public investment, because the free market mechanism can not address the problem. And in between of them, basic research caused by applying need make concrete analysis of specific problem because of the risk, uncertainties, and non-exclusivity.Secondly, in this paper, we introduce the knowledge complementarity into new classical economics model. By marginal and infra-marginal analysis, we investigate the general equilibrium of an economy in the context of knowledge complementarity, in the light of this, we analyze the effects of knowledge complementarity to technological innovation and the role of knowledge complementarity in a economy. The results show that an economy there is a trade-off between economy of specialization and division of labor economy and complementary economy. Specialization and division of labor can not be deepened unlimited, and there is also a question of degree. When it is deepened to a certain extent, complementary economy will become pronounced. So, when developing to a certain extent, we must pay close attention to knowledge complementarity and complementary economic issues. Because complete specialization and division of labor hinder economic efficiency. And incomplete specialization and division of labor economic which makes use of complementary economy and promote cooperation between various organizations may be more helpful to technological innovation and more in line with economic efficiency.Thirdly, we examine the existence of knowledge complementarity in scientific research and the relationship between scientific research to independent technological innovation from the perspective of complementarity. In the previous statement, the definition of complementarity knowledge is conceptual, and in reality, the existence of such a complementary relationship need to be tested empirically using the data. In this part of the paper we construct Dynamic Panel Data model using Chinese provincial panel data and make econometrical study adopting the system generalized method of moments(system-GMM). The results show that there are complementary relationship among basic research, applied research and experimental development, and there are positive relationship between them and independent technological innovation. This demonstrate that basic research have tractive effect on applied research and experimental development. And it promotes independent technological innovation through the tractive effect.And then, we empirically investigate the relationship between scientific research and independent technological innovation, so as to examining Chinese use of knowledge complementarity in independent technological innovation activities. Previously we have revealed the conlusion that the pure basic research needs public policy interventions and public funding support, and the complementary relationship among scientific research, especially basic research having tractive effect on applied research and experimental development. And in reality, such public financial support exists. In this part of the paper we construct Dynamic Panel Data model using Chinese provincial panel data and make econometrical study on the effect of this support adopting the system generalized method of moments (system-GMM). The results show that the complementary relationship exists, but not too strong. That is to say, the tractive effect of basic research on applied research and experimental development is a bit weak. One of the reasons may be the lack of appropriate institutional arrangements in policy. Finally, making use of principal-agent theoretical model in game theory and information economics, we examine the incentive mechanism of independent technological innovation based on knowledge complementarity in theory, and discuss governing principles of enhancing the capabilities of national independent technological innovation. By contrast of internal independent basic research and making use of external basic research fruits, we find that if transactional efficiency is high enough, that is to say transaction costs low enough, and the essential inputs needed low enough, then copperation with external organizations and making use of external basic research is preferred selection, and vice versa. And then according to the results of previous empirical studies, we propose some ways to enhance the capabilities of national independent technological innovation:The first, making full use of knowledge complementarity between basic research and applied research and experimental development so as to bring the tractive effect into play; The second, making use of gains from applied research and experimental development to nurture basic research; The third, increasing the transaction efficiency of cooperation, and decreasing basic cost needed by cooperational innovation; The forth, training with great efforts human capital conducive to technological innovation; The fifth, ensuring that firms are the main body in technological innovation.