The Mechanism And The Evaluation Of Innovation Policies On Provincial Innovation Capacity In China

Since the start of The 11 th Five-Year Plan.Chinese central government has put forward the goal of building a national innovative system,followed by the strategy of innovative province building employed by local governments.In practice,Local governments,as the policy maker,play a crucial role in implementing innovation-driven development strategy,and thus affecting the process of developing an innovation-oriented nation.However,It remains to be explored on some questions,such as what's on earth do the innovative policies affect the innovation ability,are these influence positive or negative and how to empirically evaluate these policies' influence on it.the current literature on innovation policies can't give the answers,thus bothering the official staffs and researchers.In order to evaluate the effectiveness of these policies and providing some good suggestions for further constructing the innovative province,this study will focus on the following three aspects to solve above questions,Firstly,we will construct the theoretical framework between innovative policies and innovative capability based on theoretical analysis and Literature review.Then Our research develops a panel data set for 31 provinces from 2006 to 2013 to exam the factors affecting provincial innovation ability,especially estimate the impact of the talent policy,the industrial cluster policy and the innovative province construction policy on innovation capacity in China.Finally,we will present the result and discussion of the analysis,certainly policy implications will be summarized at the end of this paper.This paper proceeds as following six parts:On the basis of knowing current situation about innovation policies research,we provide an extensive review on innovation policies,innovation capacity and the relationship between innovative policy and innovation capacity in the first part of this paper.secondly,we combine the related contents of innovation actuation theory,the innovation system theory and the public goods theory,to construct the theoretical framework between innovative policies and innovative capability,Next,four mechanisms are give,namely,innovation oriented mechanism,sharing on risks,security and benefit influence mechanism.Then Our research develops a panel data set for 31 provinces from 2006 to 2013 to estimate the impact of the talent policy,the industrial cluster policy and the innovative province construction policy on innovation capacity in China.We select the ability of basic science innovation and technology innovation,as well as thecomprehensive innovation ability as dependent variables,and the talent policy,the industrial cluster policy and the innovative province construction policy as the independent variables,these variables,in which a detailed description of research methods and data collection strategies will be demonstrated in the following section;followed by the result and discussion of the analysis,policy implication will be summarized at the end of this paper.Provinces' innovative construction should be put in a prominent position under the national innovation-driven development strategy,as its irreplaceable role in undertaking the instruction of central government.This paper studies the impact of innovation policies on innovation ability by setting a panel data.Based on a sample regression analysis of 31 provinces over a eight-year period(from 2006 to 2013),Several policy suggestions could be drawn based on the results.Firstly,talent is the key to innovation.The personnel policy directly affects the competitiveness of provinces for a innovative province construction.Thus continuous policies guarantee the talents' development should be emphasized,such as enlarging financial support channels,encouraging colleges and universities to cultivate professional talents of science and technology under the demand of innovation province construction,as well as insisting on demand-oriented development.Secondly,industrial cluster is the driving force to innovation,and the industrial policy plays a crucial role in improving innovation ability.However,because of the difference existed among enterprises in the cluster,the stimulus effect of this policy is different too.The larger enterprises are in the advantageous position of knowing the marketplace,gaining resource and information easily form the extrusion effect for those small and medium-sized enterprises.Therefore,to optimize the structure of the cluster under the orientation of efficiency and fairness is the next direction for regional governments' consideration.Finally,considering the comprehensive policies which have no significant impact,the government should make more specific implementation details to intensify the implementation of policy,to broaden the scope and to regard the implementation effect as the assessment criteria for governments' performance.So that the policy can play a real role in innovative province construction.