Innovation And International Competitiveness Of Hi-Tech Industries

The world economy is still struggling in2011. Countries muscle for a new opportunity to develop, and innovation is what they are grappling with. The hi-tech industry is important in politic area, economy, military, culture even the whole development of a society, for its high growth rate, productivity and return.This paper selects21countries from OECD to study the influence of innovation on the international competitiveness of hi-tech industries. Stochastic Frontier Analysis (SFA) is adopted to study the innovative efficiency in hi-tech industry. Results show that innovative efficiency is growing in2000-2009, while the growth rate of efficiency is decreasing, which means the hi-tech industry is becoming mature and the competition will be more fierce in the future.The empirical study of innovation and international competitiveness can be concluded as:1. innovation input has an effect on labor productivity while shows little influence on market share;2. in G7countries R&D expenditure has a more significant effect to labor productivity than in other developed countries;3.the effect of innovation differs in each industry:the R&D expenditure is more significant in pharmaceutical and medical instrument industry than in electronic industry, while in computing industry, R&D personnel is pushing the labor productivity and market share;4. the research on Hi-tech industry in China shows that the main impetus turns out to be R&D expenditure.