Productivity Heterogeneity, Exporting And Innovation Behavior

With the rapid development of technology, Twenty-first century globalcompetition becomes more intense. Innovation has become the key to promoteeconomic growth for Enterprises. China’s economic development has been dependenton investment and exports, showing a "high growth" and "structural imbalance"features. Our country adhere to education strategy, emphasis on the important role ofinnovation for economic restructuring, and increase innovation, But did not improvethe ability of independent innovation of China’s enterprises in essence, innovation stillhas a lot of problems. So, decision-making and innovation strength of corporateinnovation exactly what influence factors, exports tend to be able to enhance theinnovative business?This paper combine firm heterogeneity theory, take a variety of heterogeneouselements into consideration, then conduct empirical tests if firm heterogeneity,exports have significant influence on innovation policy-making and innovationstrength. Firstly, this paper g on the give a description on background, purpose andproblems, and defines the concept of firm heterogeneity involved. Secondly, thispaper summarizes the firm heterogeneity theory, empirical studies and researchconducted Review. Next, we show a detailed description of the business model andrelated innovation heterogeneity decision model, then analysis the relationshipbetween firm heterogeneity, exporting and innovation between the theoretical analysisand proposed hypothesis. On this basis, we use a large sample of Chinese industrialenterprises in the database, use bilateral decision probit model for hypothesis andtheoretical analysis of the empirical test. we draw the following conclusions:Firstly, Overall, there is positive correlation between productivity and innovationtrends and innovation strength. Specifically, the ownership level, industry level,regional level has different results. In the state-owned enterprise, the impact ofproductivity is not significant, but showed a significant positive role in the private,collective, and foreign-funded and Hong Kong, Macao and Taiwan enterprises. Thehigher productivity, the greater possibility of innovation in these four types. This result is consistent with Zhao et al (2012) findings, Liu&Chen (2012) explained thisphenomenon as a state-owned enterprise with a "passive selection" feature, whileother types of enterprises with "active selection" feature.Secondly, Exports have a significant positive effect to both innovationpolicy-making and innovation strength. This positive effect on innovation mainlythrough economies of scale, fierce international competition after effects and exportlearning effect on the international market, it forcing enterprises to continuouslyimprove production processes and increase sales. This is also another aspect thatexport-oriented strategy for innovation has important strategic significance.Finally, Exports and productivity jointly produce a significant positive impact onthe innovative behavior of enterprises. Specifically, the relationship betweenproductivity and innovation, exports play a catalytic role; Vice versa.On the basis of theoretical analysis and empirical testing, this paper proposespolicy recommendations for Chinese enterprise innovation, including: lowerproduction costs, improve production processes to improve productivity; state-ownedenterprises do not need special care; improve the market economic system andinnovation environment; more preferential policies to the Midwest; to tap the potentialof SMEs: Improve welfare mechanisms to strengthen the guiding role of government.