The Influence Factors Of The Persistence Of Technological Innovation

Under the innovation-driven strategy,technological innovation becomes the key to improve the social productivity and comprehensive national strength.Since market uncertainty and competition is becoming fiercer,in order to survive and develop,firms have to create core power by sustainable innovation.Firms which want to keep the persistence of the technological innovation face many challenges,such as financial constraints,lack of innovation wills,the shortage of talent employees,inadequate technology opportunities and so on.Without innovation persistence,it is hard to improve firm's productivity continuously and mintain firm's competition power.So this thesis is trying to focus on firm's persistence of technological innovation.I try to figure out the potential mechanism and find factors which play important role during the process of innovation persistence.So that firms,government and social institution can understand innovation activity much more clearly,especially the persistence of technical innovation.In order to study the persistence of technical innovation and its influencing factors,firstly,this paper reviews the past literature on this theme.Many research confims the persistence of firm's technical innovation,and it is appropriate to explain this kind of innovation persistence from the angle of state dependence.This study constructs the theoretical research framework of the persistence of technical innovation from the angle of state dependence.It provides three hypotheses to explain why innovation activities might demonstrate state dependence over time from the internal side:"success breeds success",knowledge accumulates over time and sunk cost of R&D investments.Then,we consider market competition and technological opportunity of firm's context as the external factors led to the state dependence of innovation behavior.This study utilizes the listed pharmaceutical manufacturing enterprises as research samples.After collected the patent data and relevant financial data of these firms,I use dynamic random effects probit regress to systematically study the persistence of technical innvation and related influencing factors.It turns out that the technical innovation behavior is permanent at firm level.Internal and external factors work together and provoke the state dependence of innovation,and finally lead to the persistence of technical innovation.Among these internal factors,accumulative effect plays the core role and financial resources also have important impact,but the influence of innovation input to the innovation persistence is not as important as it played during innovation process.In detail,firm's age,size and financing capacity have significant impact,on the contrary,profitability,innovation input and capital intensity don't show signific ant influence.In addition,in the context of firm,market competition status has significant negative influence on the persistence of innovation and the impact of regional technology opportunities aren't significant.After scientific analyses,I can conclude that firms which want to keep the persistence of technical innovation should attach great importance to the accumulative process of various experiences,knowledge and resources.Profitability,R&D input and capital are important for business operation and innovation,but they cannot ensure the persistence of technology innovation unless persist for a long time.Besides,firms should realize that market status represent firms'past effort including business and innovation activities,but in the other hand,great market status may reduce the innovative motives.