A Study On The Relationship Between Firm Heterogeneity And Capability Of Independent Inno Vation Based On Industry-level Data

International trade reflects the level of economic development，on the other hand, itpromotes economic development as a driver. After the period of classical economic, itbegan to research on the causes and results from the international trade, as well as itscorresponding policy. The method, which is used to research on international tradetheory, is becoming more and more detailed and strict. But there is a common assumethat enterprise is homogeneous, and most features of companies are considered asexogenous variables, in addition, it ignores the different internal characteristics amongcompanies. But, recent research has proved a fact: firms are heterogeneous.Currently, Chinese companies are in a critical period of transformation and upgrading,and how to enable our enterprises to maintain the steady growth in the market is ahuge problem, which facing our government and enterprises. The capability ofindependent innovation is the key to maintaining long-term competitive advantage inthe international business process. The capability of independent innovation includesthe technical innovation and institutional innovation, and it is a systematic project.Dealing well with all aspects of innovation is a big challenge faced with Chineseenterprises.This article is based on the trade theory of firm heterogeneity, and makes the singlefirm as the research object. In the main part, the paper studies the relationshipbetween firm heterogeneity and independent innovation, using787Chinesemanufacturing enterprises in2012from World Bank. First, we should adjustmicro-level data of enterprises to some extent, and choosing the indicators ofheterogeneity and independent innovation. Then make models to calculate the specificnumerical size of heterogeneity and independent innovation. Finally, it studies therelationship between heterogeneity and innovation with comparative analysis andregression model.The results show that, for most Chinese manufacturing enterprise, heterogeneity has apositive role in promoting its capability, so as to innovation, especially for firms intechnology-intensive industries.