Analysis On International Competitiveness Of Hi-Tech Industry

In the era of knowledge economy, the development of high-tech industry to a certain extent determines a country’s international competitiveness. The improvement of innovation capability in hi-tech industry will promote and lead the innovation level of a country at the same time. While the international competitiveness of hi-tech is influenced by various factors, innovation capability is the most important one. This paper analyzes the determinants of international competitiveness in hi-tech, among which innovation is highlighted.Based on the theory of international competitiveness, the paper selects hi-tech industry in China’s31provinces or regions as the sample. In the panel data model,the paper first analyze the different effects of capital and innovation, then further looks into the effects of different innovation inputs on international competitiveness. Empirical results show that China’s high-tech industry has stepped in the innovation-driven stage; the influence of capital and innovation differs among the different regions of China:in the regions that own more developed high-tech industry, the role of innovation is stronger while the role of capital is comparatively weaker; independent innovation inputs (R&D and new product development) shows a closer correlation with competitiveness than the re-innovation inputs (technological upgrading and introduction).