The Impact Of Market Competition Degree On Innovation

Innovation is the driving force for the development of enterprises and is the source of national economic growth.During the "Thirteenth Five-Year Plan" period,China has carried out a large number of optimization and integration of industrial structure in the field of emerging science and technology,intended to create a good economic ecology for enterprises by adjusting the competitive structure of the industry,thus promoting technological innovation.Therefore,The impact of the industrial competition degree on innovation is an important and meaningful problem.Since Schumpeter proposed the innovation theory,the influence of market competition on corporate innovation activities has become a hot topic for many scholars.However,after more than half centuries' discussion,there still has not a consistent answer to this question.In order to make a useful exploration on this problem,this paper first builds a micro-economic mathematical model under the framework of monopoly competition,and mathematically demonstrates the inverse U-shaped relationship between the Lerner index and the R&D investment of enterprises.Then select the data of Chinese industrial enterprises from 2005 to 2007,regard the Lerner index of enterprises as the index to describe the degree of market competition,and regard the intensity of R&D input of enterprises as the agent variable of enterprise innovation,then apply the panel Tobit regression model,finally it is proved that there is a nonlinear(U-type)relationship between the degree of market competition and the innovation activities of enterprises.In addition,the paper also tests the robustness of the empirical results by selecting the subsample and replacing the proxy variable,which turn out to be consistent.Finally,this paper also puts forward the corresponding policy for improve enterprises',incentive to innovate,which has a certain help for the innovative transformation of our country's industry.