Policy Simulation Based On Continuous Innovation Capability Of China's Auto Industry Merger Integration

With the globalization development of the world economy, the automobile industry,acting as the pillar industry for national economy development, is playing an increasingsignificant role therein. In the face of the increasingly fierce competition in theinternational in the automotive market and the trend of globalization of the automotiveindustry, China s automobile industry actively adjusts its industrial structure to enhancethe comprehensive competitiveness. However, the continuous innovation capacity isstill a major barrier to hinder the rapid comprehensive development of China’sautomobile industry. Under the current circumstance of the China s automobile industry,the most efficient method to solve China s low continuous innovation capacity ismerger integration for enhancing the continuous innovation capability; in particular, thekey point lies in the post-merger integration.This article focuses on how to enhance the continuous innovation capabilitythrough merger integration. First of all, it takes a deep analysis for the research ofdevelopment status of both domestic and abroad automobile industries. Then based onthe analysis result, and combined with the related theories of system dynamics andstrategic map, it builds a model of SD to initiate a strategy simulation with regard to aseries of major system indicators such as cooperative and so on, for the purpose ofspecifying their affect on the continuous innovation capability of China s automobileindustry. Finally, according to the conclusion of simulation, it points out the somepolicy recommendations on the relevant fields such as policy-oriented, governmentposition, market mechanisms, cooperation mechanism and technology innovation,which have the significant impact on the development of China s automobile industry.This article has the positive significance for the research of the related theory andpractical field. By means of system dynamics model, it initiates a series of strategysimulation with regard to the system of continuous innovation capacity of China sautomobile industry to have a deep research related to the theories of continuousinnovation, merger integration, SM and SD. Otherwise, it provides support for thegovernment s formulation of automobile industry development. Therefore, it is of greatimportance for the improvement of international competitiveness and sustainabledevelopment for China s automobile industry.