Study On The Strategy Selection Of The Western Enterprise Technology Innovation In China

From 1980s, there are two main schools on strategy management including Industrial Structure school and Resource school. Industrial Structure school thinks that enterprise must inspect the surroundings when it works out the competitive strategy, and Resource school thinks that internal surroundings is more important than external surroundings. Resource school pays attention to the accumulation of strategy resource enterprise need. Then Resource school forms a sharp contrast with Industrial Structure school, which pays attention to external surroundings. But both schools carry out the whole enterprise strategy by improving the capability of technology innovation. So how to work out a strategy of technology innovation becomes the core of the whole strategy.According to two main schools of strategy management, this paper presents Industrial Organization model and Resource-based model in the course of working out a strategy of technology innovation.The above models, each has its own strong points, and each has its own weak points, because both the features of the industrial structure and innovation capability of enterprise have a great influence on the innovation activities. The latest research result overseas shows that among the profit-making capability of enterprise, about 20% results from industrial factors, about 36% from enterprise features and strategy activities, the rest from the external surroundings. In working out a strategy of technology innovation, enterprise can continuously form the new competitive superiority, if enterprise effectively integrates the above models.According to the competitive nature of technology innovation, the paper classifies technology innovation into initiative innovation strategy and imitative innovation strategy.Nowadays, our country is carrying out the western development strategy. But who is the main body, enterprise or government? There is the great argument about this problem all the time. On the basis of analyzing the western enterprise, the eastern and the nation-wild enterprise, the paper indicates that the backwardness in the west of china is mainly the backwardness of the western enterprise. To change the backwardness in the west of china, government should increase the number of enterprise and improve the competence of the western enterprise.Which innovation strategy should the western enterprise select? From the view of the diffusion system of technology innovation and the existing situation of the western enterprise, imitative innovation is the first choice of innovation strategy for the western enterprise.Technology innovation diffusion becomes the essential force in economic growth. Technology innovation will play a great exemplary role as soon as it appears. Those enterprises, which have not obtained the super-profit, will imitate the innovation. Numerous imitations can make the innovation production to largely diffuse. The western government should pay attention to technology innovation and its diffusion. We can use the experiences of other countries for reference such as Japan. The wave efficiency, which the successful diffusion produces, will form the radiation to a certain degree to improve the competence of the western enterprise.Whether technology innovation is selected and diffused or not, has a bearing on the direct profit the technology innovation produces. If some technology innovation can make the huge profit, it will be selected by more enterprises. On the contrary, it is difficult to diffuse. The profit-using of technology innovation embraces many contents. There are several indexes to be used to analyse the profit-using such as direct profit indexes and indirect profit indexes.After working at these indexes, the paper indicates that the profit-using of imitative innovation strategy has the advantage of initiative innovation strategy's. It shows that imitative innovation can make technology innovation diffuse quickly. The backwardness in the west of china has relation to the diffusion speed of technology innovation. Then the...