Hunan Province, The Private Economic And Institutional Environment Of Innovation Research

After thirty years of reformation and open policy, private economy of HuNan has developed rapidly, and plays an important role in increasing employment, boosting economy development and making stable revenue. Private economy contributes much to the economy of HuNan. However, during the rapid development, private economy of Hunan also faces much restriction because the construction of correlative institution lags behind. The unsound exterior institutional environment is a significant factor that restricts the development of private economy of HuNan. Therefore, analyze the institutional environment for private economy of HuNan and find the existing problem and the factors that affect the innovation of institutional environment have important significance to the stable development of private economy of HuNan.In this paper, we use empirical analysis, study the informal institutional environment and formal institutional environment for private economy respectively and point out the existing problem, then though questionnaire investigation and factor analysis we find six factors that effect the innovation of institutional environment for private economy of HuNan. Those factors are unsound policy and law environment, the cost of innovation and knowledge and market restriction, the development and scale of private enterprise, exist interest group and faulty market economy system, lack of consciousness of innvation and foresight, and the restriction of traditional culture and notion.On the base of contrastive study of the institutional environment innovation of private economy of HuNan and ZheJiang province, we suggest that HuNan should turn compulsive institutional variance to caused institutional variance, should integrate the innovation of formal institution and the innovation of informal institution, integrate the innovation of core institution and the innovation of accessorial institution, integrate imitated innovation and independent innovation. And should foster culture environment that fits socialistic market economy, and enhance consturction of credit environment and socialistic market economy system and financial system, and make the policy and law environment and property right institution more suitble for private economy and give its more financial support so that the private economy of HuNan can develop better and faster.