Research On Internet Industry Innovation System And Its Efficiency Evaluation

Internet, one of the greatest inventions of the21st century, is becoming the imperative strategic infrastructure and the era of information while radically changing the social production and lifestyle. In recent years, the Internet industry rapidly flourishes, technological innovation and business model innovation develops vibrantly, infiltrating Internet towards the traditional industries at the same time spawning a series of new services which becomes the new growth points of economy. Compared to the traditional industries, Internet features itself for more new characteristics, such as its vibrancy, infiltrated phenomenon and innovative efficiency. This paper, utilizing a theoretically and practically, qualitatively and quantitatively, empirically and specifically combined methodology, analyses the constitution and operative mechanism of the innovative system of Internet, the dynamics, actual measurement and the innovative system efficiency of Internet as well as putting forward with political proposals. The paper can be divided into four parts:1. This paper briefly introduces the research on innovation system, industrial innovation system and Internet innovation system both within China and the globe. Complexity science, system dynamics, efficiency theory and grey system theory are also introduced to conclude their application in the research of innovation, forging the theoretical and methodological foundation of this paper.2. This paper defines Internet industry, industrial innovation system and Internet innovation system, constitutes the five-element model of Internet innovation system, briefs the four characteristics which distinct Internet innovation system from the traditional industries. In has been pointed out that in this system, market demands, entrepreneurship and industrial policy are the three innovative engines; Internet enterprises, academies, financial institutions, intermediary organizations and governments of all levels are the five innovative entities; technological innovation, products and service innovation, organizational innovation and business model innovation are the four innovative contents; hard science, such as broadband network, scientific research infrastructure, jointly with soft science including institutional mechanism and culture, constitutes the innovative environment; configuration of innovative resources, organization of innovative activities, distribution of innovative accomplishments and collaboration of activists are four mechanisms determining the well-being of innovative system.3. This paper analyzes the complexity of the innovative system of Internet industry, builds its dynamics model, draws its cause-effect diagrams and flow charts, and conducts an empirical research on it. Based on the system simulation, it has been found the modification of financial policies poses obvious influences on the Internet industry. Thus, a nation is supposed to encourage its financial institutions inclining to the R&D of enterprises, enabling the financial policy better support the innovation of Internet industry. The impact from the human resource policy is relatively subtle, indicating the unreasonable structure of scientific and research personnel, and the fact that R&D expenditure is insufficient to meet the innovative demands.4. This paper comments on the innovative system efficiency of Internet industry by using the DEA methodology. In can be discovered that regardless of perspective from industries or sectors, the innovative system efficiency of Internet industry significantly outweighs that of traditional manufacturing industry. Through the quantitative comparison on the Sino-America innovative system efficiency of Internet industry, it can be seen that the fluctuation in the innovation system efficiency of Internet industry of China is more volatile, demonstrating the endogenous-growth dynamic mechanism on an independent-innovation basis has not been completed formed; meanwhile, the growth in the innovative system efficiency of the US Internet industry is mainly contributed by alternate driving of technological advancement and technological efficiency, implying the innovative development of Internet industry shall not only focus on the importation, digestion and application of technology, but the improvement of managerial quality as well.5. This paper comes up with five proposals including the elevation of Internet management, a collaborative multi-entity innovative system of Internet industry which cores in enterprises, the protection of intellectual property rights shall be strengthened, an endogenous-growth dynamic mechanism shall be built and supporting policies mechanism shall be optimized.The research and conclusions can facilitate the innovative development of Internet industry as well as providing new thoughts and methodologies to research on relevant industrial sectors.