The Threshold Effect Of Human Capital On Independent Innovation

Nowdays, various economies are closely integrated with each other, provides a good opportunity and external environment for Chinese enterprises to conduct independent innovation. Chinese enterprises, especially those manufacturing companies involved in the global supply chain, mostly are in the middle part of the industry value chain, standing in the subordinate position of the division of labor and in the weak position of the distribution of benefits. The distribution of benefits depends on the scarcity of the factors of production. To obtain a higher level of distribution of benefits, we must have a higher level of production factors. To explain the upgrading of industrial structure and transformation, the maintenance and development of comparative advantage and the power source of sustainable economic growth, we need to research on human capital, especially entrepreneur human capital.In theory, human capital is the most important factor of those factors affecting economic growth. Human capital is the core of innovation capital. The stock, the quality and the structure of human capital determine the effect of independent innovation According to the theory, human capital is divided into three categories: general human capital, skilled human capital and entrepreneurs human capital. Entrepreneur human capital is composed of innovation and management capabilities. Entrepreneurship is the core capability to improve independent innovation.This paper is based on the "threshold effect" innovation output model, conducting empirical research using data samples of the30provinces in China from1999to2011, considering the R&D Investment, FDI, human capital investment and other factors, analyzing the status and direction of development of the different parts of the human capital and capability of independent innovation.We test the statistical significance of the threshold effect of the human capital variables by bootstrap in this paper. Through data analysis and empirical research, we find that we have a better development of the skilled human capital after many years of infrastructure, education and health inputs and improved market economic environment. The level of skilled human capital of almost all provinces has crossed the threshold. Skilled human capital can effectively improve the capability of independent innovation of the provinces. However, the situation of entrepreneur human capital is not optimistic, especially for the detection of FDI spillovers. This is because the specialty of entrepreneur human capital, but also means we have come to the critical period of investment in human capital.