Research On The Function Of Technological Innovation To China's Export

Since the reform and opening-up policy, China's foreign trade has gone through a period of rapid development and technical innovation is becoming one of the most important factors of promoting China's competitiveness in foreign trade. Firstly, this article describes some international trade theories, including Product Life Cycle Theory, North-South Trade Model, Technology Gap Model and Technological Catch-up Theory in developing countries. Directed by these theories, this article describes the role of technological innovation in a country's export trade: technological innovation can expand a country's export trade scale and improve the international competitiveness. Secondly, based on the present data of technological innovation and export trade of China, the article makes a quantitative analysis and confirms that technical innovation has a positive function in China's export trade. The forth chapter combines the data of technical innovation and export trade between the year of 1997 and 2006 of China and establishes a model to test the function of technical innovation in promoting export trade. The result shows that the factor of capital has a certain function of expanding export trade scale and the technical innovation factor has an obvious function on it. For promoting the competitiveness of export products, both capital and technical innovation factors work. Therefore, we can predict that technological innovation in future is most likely to be one of the important sources of promoting China's export trade level. Encouraging technological innovation and strengthening technical innovation investment can not only change China's present export growth mode, but also lighten the export trade pressures from China and other countries. Finally, this article will propose some relevant policies about promoting the development of technical innovation. The policies include: implementing tax preferential policies, improving efficiency in the use of fiscal funds and setting up a sound mechanism of risk investment; setting up a sound patent-protection system; increasing investment in human capital; accelerating the development of high-tech industry; transforming the traditional industries for continuing to play a role in promoting the export trade. Effective policies and measures will greatly facilitate the development of China's technological innovation. Ultimately by raising the technological content of export products, export scale can be expanded and export competitiveness can be promoted.