The Performance Of China's Economic Reform And Its Influence On Technological Innovation Capacity

It has been more than 30 years since the reform and opening up, the economic reform policies have been carried out one by one, Chinese economy has been grown rapidly, and our technological innovation capacity has also been improved steadily.To find out the outcome of our economic innovation and its impact on our technological innovation capacity, several reform policies were thoroughly analyzed. An economic reform index which include four first class indicators(financial development, degree of opening-up, variation of ownership structure, and development of technical service system) and ten second class indicators were established to display the outcome of our economic reform. Then, the mechanism of how economic reform can influence our technological innovation capacity was analyzed. And finally, an empirical approach was used to testify the actual influence of economic reform on technological innovation capacity.The results show that, firstly, the result of our economic reform was pretty good, four first class indicators have all improved a lot. Among which, the index of variation of ownership structure and development of technical service system have grown more rapidly; however, the index of degree of opening-up has experienced more fluctuations. This means reform policies regarding foreign trade and investment need to be improved. Secondly, it can be shown from the result of mechanism study and empirical test that the performance of economic reform has an important impact on the technological innovation capacity. Specifically, there is a one-way causation and a long-run equilibrium relationship between the performance of economic reform and technological innovation capacity. No matter in long term or in short term, the performance of economic reform contributed a lot on the improvement of technological innovation capacity. Finally, based on the result of this study, several suggestions on how to optimize economic reform policies and improve our technological innovation capacity are given.