Effect Of Technological Innovation To Industrial Competitiveness In China’s High-tech Industry

After nearly 40 years with the rapid development of China’s reform and opening up, China’s high-tech industry achieved the historic transformation which its scale ranked the second in the world. However, compared with the developed countries like the United States and Japan, China’s high-tech industry is slightly inferior, which is only big but not strong, lack of the core competitiveness and the current increasingly fierce competition between countries. Therefore, the essence of competition is the scientific and technological level of competition, and the transformation of science and technology into real productive forces. High-tech industry is based on the latest achievements of modern science and technology, so that it occupies a pivotal position in the economic development. The level of high-tech industries development determines whether a country could obtain the long-term competitive advantage, and the comprehensive national strength and the international competitiveness of a country and region. Therefore, improving the development of high-tech industry strength has a far-reaching influence on the development of the whole country.This paper studies from the perspective of technology innovation ability to high-tech industrial competitiveness. Research idea is analyzing the current situation of the high technology industry and puts forward problems, according to the theoretical basis to build an empirical model, and then come to the conclusion and policy recommendations are proposed according to the reality. First of all, on the basis of technical innovation and industrial competitiveness theory, the article sees the 17 subordinate industry of the China’s high-tech industry as the research object, using the Principal Component Analysis to classify the technology innovation index fom2003 to 2012, extracted three major factors, and further obtained the tendency of the high-technology industry for the technology innovation ability. Secondly, in the analysis of high-tech industry competitiveness, the article selected total profits, labor productivity, export value and the market share these four dimensions as the representative of China’s high-tech industrial competitiveness. Then, in order to get the panel regression equation, we use the three principal components as explained variable, the four indicators of high-tech industrial competitiveness as the dependent variable empirical test on the panel. It obtained the conclusion that technology innovation ability under different industries has the different influence of the high-tech industry competitiveness.The results show that the different high technology industry has the different levels of technology innovation. On the whole, the technology innovation ability and the high-tech industries competitiveness has a significant positive correlation. In the last, on the basis of the theory and practice in this paper, enterprise in the high-tech industry and the government made the industry policy for the benign development of China’s high-tech industry competitiveness to provide some policy suggestions.