A Study Of Economic Evolution Based On Enterprises Spin-offs Mechanism And Evolutionary Economics

Since China has reformed and opened up, Zhejiang Province economic development and growth shows its unique characteristics, whose path relies on the quantity of small and medium-sized private enterprises and the metabolic rate of private enterprises. We name the way "enterprises spin-offs" economic development model. It is different from the economies of scale in western traditional economics" Enterprises spin-offs" appears as a kind of experiential phenomenon and then becomes micro mechanism in human cognition, but how to define its role in the economic development and economics theories? How does its external mechanism drive economic system? How can "enterprises spin-offs" impact external mechanism of the economic system? And which economics theory abandoned it carelessly? Aiming at these questions, this paper carried out a series of studies about the system of economic evolution which based on the perspective of "enterprises spin-offs" mechanism. That is a try that study from micro economic world to macro economic world.The first chapter introduces the background of the research, literature review, research objectives and methods, and the innovation of the paper.The second chapter explores the paths of enterprises spin-offs. The game behavior between existing entrepreneurs and potential entrepreneurs cause different selections of paths in enterprises spin-offs. Some enterprises in cluster environment which be regarded as some ready-made samples have some effects on entrepreneurs’ subjective utility evaluation and entrepreneurs’decision. According to the characteristics of SMEs and comparing to biological population evolution, this section study the enterprises in clusters and divide the boundedly rational entrepreneurs into different populations, and build an evolution game model which is suitable for analyzing enterprises’derivation paths. Considering the decision of entrepreneurs in the cluster spreading mainly by "slow learning" mode, this section eventually receive evolutionary stable strategies of enterprises’ derivation paths by using the method of "replication dynamics",and make some analysis on the results from the model.The third chapter discusses the enterprises evolution and industry evolution. Evolution theory on modern economics is lacking of the description in enterprise derivation (spin-offs) ideology. Nevertheless, the enterprises’derivation is provided with obvious economic evolution characteristics. In addition, it plays a pivotal role in "route" transportation on enterprises and evolution process on industrial level. In this chapter, we synthesize theories of modern evolutionary economics for the purpose of putting "enterprises spin-offs" role in the right place. From the perspective of "enterprises spin-offs", we do mechanism research in enterprises’evolution and industrial evolutionary process, and analyze enterprises internal evolution mechanism of the route, as well as put forward the two phase transfer model based on the route. Then on the basis, we further analyze the different types and process of industry evolution, explain the evolution of the regional industry cluster.The fourth chapter is the empirical part of this paper. On the one hand, through the theoretical model, the chapter demonstrates that derivative economy, as the same as economies of scale, has promoting effect on economic growth, in the cases that the market transaction cost is zero. On the other hand, taking advantage of Zhejiang Province panel data certifies that the increasing enterprises quantity, as main features in derivative economic model, promotes regional economic growth.Based on the empirical studies in previous chapter, the fifth section further explores the enterprises spin-offs mechanism plays role in the economic growth behind this representation in which the number of enterprises increases. Comparing the neoclassical economics growth model and evolutionary economics relevant theories, explain that the positive "enterprises spin-offs remaining" function and its contribution to the economic system, by summarizing a variety of the general abstract characteristics in enterprises spin-offs. Then contact with realistic national situation, this paper discusses the "soft factors" which company with "enterprises spin-offs", discusses its contribution to China’s economic development presently.The sixth chapter improves the interaction between enterprises spin-offs mechanism and economic system to the "institution evolution level". The institution acts constraint type under that system organization spontaneously comes into being, relatively stabilize and continually evolve. The institution plays a key and maintaining role in operation process in system."Enterprises spin-offs" is a way of complex system movement. For generating difference value change during behavior in enterprise as a novelty, enterprises’ evolution rises in response to the time and conditions, as well as, provides novelty for the market in the form of generating new businesses or new organizational forms. On this occasion, institution evolution in different organizational boundaries starts. In this chapter, we explore inherent systemic movement in enterprises’evolution----institution evolution, from its characterization.The seventh chapter gives the summary and prospects of this article.