Home Market Scale And The Development Of Strategic Emerging Industries:from Evolutionary Economics’ Perspective

The financial crisis, occurred in2008, not only trapped the mainly countries, but also the development of emerging industry and new formats, i.e. the combination of enterprises self-organization and government regulation, which, with the existing problems, makes the development of strategic emerging economy a necessity. But how? This paper thinks it rests with the gigantic domestic market size, and based on home and abroad research, we study from variation, selection and positive feedback with the help of Lotka-Volterra model (a mathematical biology model).In the variation stage, strategic emerging industry just sprout, and reasons are complicated---technological revolution, new demands, major events (e.g. financial revolution). The selection stage is sophisticated, which can be divided into3periods. At first, emerging industries stand out as a result of lament demands; then, under continual trial and error of huge home market size, as well as conformity consumption habits, a strategic emerging industry, featured super adaptability is born, which can make full use of all existing resources, and adapt to new demands and technology. Finally, the strategic emerging industry is forced to explore new opportunities---by the interaction with local demands and select mechanism, reaction of higher level demands as well--to satisfy potential renewal, ultimately, advance it to a highest level, even the whole economic system. Based on Lotka-Volterra model, the selection stage has different function form according to distinct factors, thus different conclusions.Positive feedback is the last, which is initially formed when its autofrettage strength magnified, and vanquish equilibrant force. If strategic burgeoning industry takes full advantages of positive feedback from consumers (given that every trivial demands will have huge potential market in large domestic market), it will be consummated unceasingly externally, and form scale economy between industries. The key element is inside’super adaptability’ characterized strategic burgeoning industry. The stronger it is, the more opportunities to be promoted, and become widely acceptable in the whole economy after a period of time. Autofrettage variable is added to this phase’s Lotka-Volterra model, and turns out to be accordance with the theory. In conclusion, domestic scale plays an important role in all three stage, and we should cultivate and upgrade new demands for the development of strategy burgeoning industry.