Selection Of The Chinese Garment Industry Listed Companies Based On The Scale Of Business Technology Innovation Strategy

Technical innovation is the core of innovation system in a country, the primary method to realize enterprise informatization and modernization and guarantee the new growth point. Firm size has been a basic factor influencing technical innovation in firm since "Schumpeterian hypothesis" in 1942. But up to now, the relationship between firm size and technical innovation hasn't achieved a certain conclusion. However, the world financial crisis cause the recession of the foreign market and product export. Facing the problems of the textile and closing industry, our government and company must enhance the international competitiveness. It is the intention and significant of this paper."Schumpeterian hypothesis" of innovation-firm size relationship is the basic theory of this paper, which focuses on the closing listed companies in China. Game Theory is used in the analysis of the relationship between firm size and technical innovation.This paper applies the factor and cluster analysis procedure to analyze the firm size, using firm's data from Chinese closing listed companies. The innovation strategy centers on its relationship with the firm size. Therefore, through building Nash Equilibrium to analyze the innovation strategy of the closing listed company in China, this paper offers reference for the option of innovation strategy.Then on the basis of theoretical analysis and empirical analysis, the paper achieves a conclusion: 75% of the Chinese textile and closing companies are small companies, which tend to select the product innovation strategy, because the opportunity cost is low. The other larger textile and closing companies tend to select the process innovation strategy, because the marginal profit is high.