On The Institutional Innovation Mechanism

The theory of institution innovation is an important content in the research of institution economic school. So far institution innovation has been an important research subject the theoretical circle and China's socialist construction. The research of institution innovations and the rise of subject's initiative have been a topic that has to be resolved immediately.Mechanism refers to the process and pattern of the interactions between components of working system. The dissertation, from the perspective of the carrier of institution innovation-mechanism analyses the longitudinal structure and function of it. The dissertation also explores, the three major elements of institution innovation: institution innovation system, institution innovation operations and the methods of institution innovation.Institution innovation system is a carrier where innovation mechanism exists and all it functions work. Its information sub-system, decisive making sub-system, Consultation sub-system, execution sub-system and feed back sub-system. Although every sub-system has their own structures and functions, they coordinate and harmonize with one another and are integrated in the large system institution innovation.The institution innovation operation refers to the dynamic manifestation of the sub-systems, of the institution innovation mechanism. It includes the following circulating links: the establishment of objectives the designing of programs, the preferring of programs, implementation and feedback of the programs. The smoothness and efficiency of its operation depends on the degree of the coupling of functions of the sub-systems. To make the links orderly, scientific and effective has therefore become a problem of strengthening the vitality the whole mechanism. The scientific method or mode of institution innovation refers to various means or mode in which innovation subjects we in innovation activities. The dissertation touches on some common ways of innovative thinking and their roles, In the meantime it also puts forward several means of institution innovation, such as the institution reference, trans-planting, inheritance and amalgamation. Finally, the dissertation discusses some aspects of the institution innovation mechanism that should be perfected after China has entered WTO and arrived in knowledge economy society.