Study On Market Structure And Technological Innovation

Technical innovation and the permanent economic growth areinseparable,sometimes even is the main factor.There has been a lot of controversy forthe interaction between market structure and technological innovation. But there hasbeen a lot of controversy regarding the interaction relationship between market structureand technological innovation. Schumpeter’s Hypotheses says that monopoly is moreefficient in many cases, more conducive to stimulating innovation behavior than thecompetition. But Arrow thinks that perfect competition market is better than the other,more conducive to technological innovation. In recent years the results of researchshows the hidden assumptions constraints the range of inference.The new modernindustrial organization theory and endogenous growth theory suggests that theconclusions are not the same with different assumptions, different industries, differentsystem.Study on this proposition changes from overgeneralization unified theory tospecific condition analysis,now there is the abstraction of regression analysis.This paperanalyzes the relationship between the two in theory,the elements and microscopic actionmechanism of the market structure and the innovation performance, and thecomprehensive and assembly relation between industrial level. Also comprehensivelyadding up to The relation between industrial level.Through the analysis of actual data ofChina’s high-tech industry to analyze the present situation of the market structure andtechnology innovation.On the basis of this,it derives simultaneous equations of marketstructure and its related factors and technology innovation to test if it might becombined with endogenous relation.This paper put forward the favorable industrialpolicy and system reform to provide suggestions for the realization of a new round ofinthe Chinese economic growth under the independent technological innovation.First of all, the paper theoretical analyzes the relationship between market structureand technological innovation.From the two aspects of the Schumpeter’s Hypothesesdevelopment system and the innovation process, the foreign classical theory about themarket structure and technological innovation are reviewed.The analysis of domesticliterature is from the angle of different property rights and the angle of differentcompetition degree.Then comparing the current situation of Chinese high-tech industry.The the related index of market structure were described, and on the basis of this, themarket structure of China’s high-tech industry was analyzed. Through the analysis of the statistical "High-tech Industry Statistical Yearbook" and other data, comparing the basicsituation of industry scale, market structure, then calculating the concentration ratio in2009.By using the same data, it measures the indicators of technological innovation, andcompares the R&D input, output of high-tech industry in our country from2003to2009.And briefly expounds the overall situation and insufficient of the high-tech industry inour country.Secondly,this paper empirical analyazes the internal relationship between themarket structure and technological innovation of the high-tech industry in ourcountry.The microscopic mechanism of two-way effect to market structure andtechnological innovation model were briefed. Mainly analyzed the influence of differentform of market and different size of enterprises on technology innovation performance.The influence of technology innovation on market structure is measured by the elements,such as market concentration, product differentiation and barriers. And then use thepanel data of Chinese high-tech industry to establish the simultaneous equations modelfor regression.It selects the3SLS method for the system estimation, that there arecombined with endogenous relation, and the single equation regression results do asimple comparison.The conclusion shows that there are joint endogenous relationshipsbetween the two,and gives a simple comparison and regression results of the singleequation.Finally, empirical research on the results obtained the following conclusions:thereis combined with endogenous realationships between market structure and technologicalinnovation. Market concentration is negatively related to innovation, and effectivecompetition is conducive to innovation incentive. And the technological innovation hassignificant negative influence of market concentration.But the size of the market andtechnological innovation is a two-way positive correlation, also the effect of propertyright structure innovation is negative. The size of the market industry shows its goodmarket performance,and the market behavior and the pursuitis are more effective fortechnological innovation.Through theoretical and empirical analysis,the related policyimplications: first,the independent innovation should be combined with the introductionof technology to improve the technology innovation in china.Second,to foster theenterprises with the advantages of technological innovation in this industry,and toencourage the small and the medium-sized enterprises to enter the market.The existingpolicy is to support technological innovation of enterprises as the oligarchs to lead thedirection of technological innovation.But at the same time,the adequate attention is needed which is indirect guide for appropriate competitive market environment.Weshould pay attention to the positive effect of competition on innovation,shuold not toblindly support monopoly.Third,to improve the intellectual property protection systemwhich can stimulate the motivation of technological innovation and improve outputefficiency. The spillover effect of technology innovation in high-tech industry isobvious.This will cause the innovation power insufficient, so the intellectual propertysystem is even more important.