In the era of knowledge economy, the competition of the world's economy has gradually become the competition of science and technology. Technological innovation has become the main driving force of economy growth. Traditional Chinese medicine industry is a typical industry with high technology as the leader. Technology innovation is not only the source of core power to promote the healthy and sustaining development of Chinese medicine industry, but also the most important way to enhance the development and growth of Huaiyao processing industry in Jiaozuo City. At present, owning to the low technology, shortage of technological innovation, lacking of advanced technology equipment, Jiaozuo huaiyao processing industry can only produce the low-tech products so that it can not compete with other enterprises. For the Jiaozuo Huaiyao processing industry, technical innovation, development of new products and advanced production technique are the keys to win the competitive advantage and to foster their own core competence.Technology innovation can promote the optimization and upgrading of industrial structure through adjustment of technology and product structures. Application of new technologies and development of new products are the lifelines of the Huaiyao processing enterprises in Jiaozuo City, and it is also the motive force of their development. By upgrading the production technology and promoting the product structure more rational, Huaiyao processing technological innovation optimize and upgrade the industrial structure.This paper aims to make clear of the problems existing in Huaiyao processing technical innovation, then to propose the corresponding policies and recommendations to guide and promote Huaiyao technological innovation in processing industry, which can enhance the technological innovation capability of Huaiyao enterprises, promote the modernization of Huaiyao industry in order that it will really become a pillar industry in Jiaozuo City. This paper also provides implications for enhancing Huaiyao processing technology innovation. It is not only the decision-making basis of relevant policies, but also provides some new thinking mode of technical innovation for studying traditional Chinese medicine industry.This paper adopted several methods to analyze and study the technology innovation of Huaiyao processing industry, like document analysis, social survey, comparative study, and the combination of quantitative and qualitative analysis. Huaiyao processing industry technology innovation was analyzed and studied deeply in this paper. Based on the technology innovation theory and summarizing domestic and international literature review of technology innovation on the traditional Chinese medicine industry, this paper is divided into three parts:Firstly, it introduced the present situation of Jiaozuo Huaiyao processing technology innovation. It described the general overview of Huaiyao industry, including the basic information of Jiaozuo City and the overall development of Huaiyao industry; and then, from points of the basic situation of Huaiyao processing industry and the models used in technology innovation, it analyzed the status of technology innovation deeply in Huaiyao processing industry of Jiaozuo city. Finally, it studied the problems existing in Huaiyao processing technical innovation, including low input of R&D funds, unreasonable R&D budget allocation structure, a lot of patents but with low quality, relatively few high-level technical personnel, the poor processing of information collected of Huaiyao processing enterprises five issues and so on.Secondly, reasons for the existence in technical innovation problems of Huaiyao processing industry were deeply analyzed. From the demand of developing new products, demand of high technological standard and demand of innovation for the technological development, the technological development requirements of Huaiyao product were explained. Moreover, it analyzes the reasons for the existence in technical innovation problems of Huaiyao processing industry. Main reasons are lack of venture capital and financing mechanisms to support technology innovation in the sources of funding, lack of human resources, low efficiency in technology innovation output and lack of interaction effect in the whole technology innovation system.Finally, for the problems of technology innovation in Jiaozuo Huaiyao processing industry, five recommendations to enhance huaiyao technology innovation in processing industry were proposed. They were:(1) All ranks of government and relevant departments should guide and establish the consciousness of technology innovation in Huaiyao processing enterprises; (2) Multi-channel and a wide range of technology innovation investment system should be established, mainly including government investment in science and technology in Huaiyao processing industry, broadening the financing channels and the introducing of venture capital, etc.; (3) We should implement the talent innovation, like creating good working conditions for the Huaiyao talents, perfecting the talent incentive mechanisms and distribution system, building the fund system for talent development, training entrepreneurs on scientific and technology innovation; (4) Perfecting the policies and regulations of technical innovation system. It mainly includes improving the construction of policy support system and legal norms; (5) Improving the overall interaction effect of technology systems by establishment of technical alliances and information system.From the theoretical point of view, the technology innovation of Huaiyao processing enterprises has been dissertated. However, due to my limited knowledge and objective conditions, the research is not deep and thorough in many aspects, for example, specific policy which has been proposed is not perfect, so it requests further and detailed studies. Many problems should be researched and studied deeply in the future.Drawn from this research, technology innovation is the key and core of Huaiyao processing industry in Jiaozuo. It must rely on technological innovation, arming with high-tech forces to enhance Huaiyao processing industry. Only increasing the technological innovation vitality, accelerating the product innovation and technical innovation, can the marketing competence be really improved. The government and Huaiyao processing enterprises should focus on the capital investment, innovation of human resources, establishing policies and regulations etc., to resolve the main problems which limits the technological innovation, like funds, talents and other issues. Then it can raise the level of technology innovation and marketing competence to promote the sustained and sound development of Huaiyao processing industry. |