The Analysis On Contribution Of Management Innovation To The Economic Growth

Since the reform and opening, economic has grown rapidly in Shandong province, and the general economic srength is among the best areas in China. However, the economic growth relies only on capital and labor inputs, which is extensive, a series of questions conducted seriously affect the sustainable economic development. So it is the right direction to change the style of economic growth to promote the economic development in Shandong province.Economic growth promoting factors can be divided into two main categories: input and factor productivity. Factor productivity is also known as generalized technical progress, which is the key to promote the transform of economic growth pattern. Generalized technology progress includes technological innovation and management innovation. As the important part of generalized technology progress, management innovation plays a great role in the transforming of the mode of Shandong’s economic growth. There fore, it is important for the changing of economic growth mode, to study the association between management innovation and economic growth, exactly understand the development and current situation in Shandong province.This paper firstly defines the connotation of management innovation and economic growth, overviews the economic growth theory and the foreign and domestic empirical studies, and summarizes the current studies on the relationship between management innovation and economic growth.Secondly, on the basic of compare with the advantages and disadvantages and limitations of different management innovation contribution measuring models, it perfects Li Zinai’s deduction model with polynomial distributed lags model. With the modified model, it measures the contribution of management innovation to economic growth between1991-2009in Shandong province, and the national average level, so as to determine the management innovation level in Shandong province.Thirdly, it measures the level of management innovation contribution of each locally administered level, and has made a comparative analysis.Lastly, based on the positive analysis conclusion, the paper brings several suggestions to promote the management innovation level, and explores the next research direction.