System Of Research, Innovation And Macao's Economic Development

Over the past six years after Macau returned to China, its economy has been recordedsustainable growth for six years. However, the takeoff of the economy creates manyconflicts, problems and threats, for example, lack of human resources, poverty gap,corruption of the government etc. Why these problems exposed to Macau during theeconomic growth? Institution becomes incision of our discussion.It is generally believed that the problems are created mostly because of the interestconflict and the root of the interest conflict is because of imbalance allocation ofresources, which is caused by the institution deficiency. We will analyze theinstitution with some of the demonstration of the recently event of Macau, throughwhich we will discover the problem root and the lagging behind of Macau'scapitalism institution. Firstly, the separation of power cannot fulfill thefunction of balancing, then under one country two systems restriction and thebasic law, the chief administrative officer has been over-powered and thereforecreate the situation of government guiding and power centralization.Under this institution deficiency, government's behaviour is not restricted, and socreate various kind of official misconduct such as misallocation of resources, usingpublic right for private gain, market failure etc. If Macau does not think itover to solve from the root problem of the institution deficiency, it maybecome the obstacle of Macau's economic development. Therefore, institutiondeficiency becomes our analysis target. It is generally believed that, not only institution deficiency, but also people are one ofthe main obstacles for Macau's Economic development. Nevertheless, we have gotdifferent point of view, we do think that "institution deficiency" is the key obstacle.And we can see that the institution deficiency of Macau is in the inability ofcapitalism institution which can not disseminate the powers into three parts andmonitoring each other. A lot of discussions prove that politics can affect economicdevelopment and vise versa in condition that the political environments are improvingtremendously.As a result, we use economical point of view to build up this theory, through maturepolitical development affecting economical development. We develop the logic thatwe have to faultless a tri-power dissemination political institution. Target is to buildup a "human-centered thinking" government, which lead to stability of theeconomic and sustainable development. Of course, in the processing, which have toinvolve games in different kind of social issues. Surely it has to be done step by stepthrough institutional innovation.In order to solve Macau's future economic problem, we have to position ourselvesaccurately and be on the right track of thinking. From all aspects, "firmdevelopment by consolidating the existing basis" is the most suitable developmentthinking. In practice, we recommend that firstly, to in-spread the power, which is tofor governing the government internal department; secondly, to cooperate with theoutsider, which is good for regional economic development. No matter how we haveto refresh our institution and find a new mind set for firm development byconsolidating the existing basis. To relate the institution and economic development, we have to quote theinstitutional change models: classical institutional change model, Marxinstitutional change model, and find out the Macau's right institutional trackaccurately. Therefore, Institution changes models become our basic theory.In conclusion, we try to analyze Macau's future economic stability and sustainabledevelopment through institutional innovation. The value of discussing institutionalinnovation lies in its fundamentality, validity and timeliness.