Study Of Correlation Between Technology Innovation And Product Heterogeneity In China's Manufacturing Inductry

In recent years,the study of technological innovation and product heterogeneity received extensive attention of scholars, but there are few studies on the analysis of correlation between them. In this paper,research on the relationship between technology imovation and product heterogeneity is propitious to provide reasonable suggestions about R&D investment for enterprise managers, which is beneficial to improve the activities of production-manufacturing for enterprises.This paper aims to analyze the correlation between the technological innovation and product heterogeneity, as well as to study the threshold effect about product heterogeneity produced by technological innovation, and then estimate the threshold effect value,which is more advantageous to provide some suggestions on optimal R&D strength for enterprise managers. Based on the existing literature and related theories, the paper makes an analysis of relationship between technological innovation and product heterogeneity in manufacturing industry, and then uses the threshold regression model to make an empirical analysis of automobile manufacturing industry, which will effectively explain the complicated nonlinear relationship between technology innovation and product heterogeneity.Based on the above theoretical research and empirical test, this paper gets the following conclusions. Firstly, the results indicate that the relationship between technology innovation and product heterogeneity is not a simple linear correlation, but become a kind of threshold effect.Secondly, via an empirical research of automobile manufacturing industries, we can estimate the threshold value of 2.9%. That is to say, in the region beyond 2.9%, the effect of technology innovation on product heterogeneity is quite obvious, while in the higher region above 2.9%,the effect of technology innovation on product heterogeneity is much smaller.Based on the relationship between technology innovation investment and heterogeneity, the paper had an in-depth analysis from a micro level. Besides, through constructing a threshold regression model,the empirical study of automobile manufacturing industries estimated the threshold effect value, which is beneficial for automobile manufacturing enterprises to determine the reasonable R&D intensity and provide intellectual support for other manufacturing industries.