Independent Innovation And Optimization Of Industrial Structure Upgrade

Industrial structure reflects the dynamic relationship and allocation of various economic resources among industries. Differences among the resource utilization efficiency in various industries determine the flow of economic factors. Industrial structure's optimizing and upgrading will improve the allocation efficiency of economic resource and thus promote economics growth. At the same time, it will also transform economic growth pattern from extensive growth to intensive growth.Technological innovation will change resource utilization efficiency and profit in different industries, induce the flow of economic factors among industries and optimize industrial structure through dynamic allocation of economics resources. The adjustment of industrial structure is an unbalanced and dynamic process, and technology is a core factor in this process. Innovation in one industry will raise technology level in this industry and other related industries through innovation diffusion, and then trigger adjustment and optimization process of industrial structure, so technological innovation induces optimizing and upgrading of industrial structure.Since the middle period of 1990s, China has entered a new period of strategic adjustment of industrial structure. In this period, industrial structure's optimizing and upgrading is a core task for Chinese economic growth, and technological innovation has become a main power to boost industrial structure's upgrading and economics growth. But the lack of independent innovation capacity delayed this upgrading process, and brought some major problems which had caused the inefficiency of Chinese industrial development, including the slow development of service industry especially producer service industry, lower value added from industry economic activities and extensive growth of economy. Moreover, under industrial division of Global economy, China is disadvantaged in the Global value system. And Chinese economic growth and upgrading of industrial structure are more independent It is put forward definitely in the fifth session of the sixteenth Central Committee of the CCP that enhancing independent innovation capacity is a strategic task to Chinese S&T development and industrial structure's upgrading, as well as the change of economic growth pattern. This dissertation analyzes the evolving characteristics of industrial structure in China and some major problems existing in this evolving process systematically. We try to explain the strategic significance of independent innovation to Chinese economic development and industrial structure's upgrading, and how technological innovation taken by enterprises affects the upgrading of industrial structure and its transmission mechanism. Finally, the main goal of Chinese industrial structure's upgrading and public policies that can help to achieve those goals are put forward.