A Study On The Microcosmic Mechanism Of Unbalanced Development Between Real And Virtual Economy

Improving development quality of real economy is a serious issue faced by China in recent years.The big discussion about the chip industry triggered by the ZTE incident highlights the characteristics of China's large but weak manufacturing industry and lack of core competitiveness.The difficulties faced by real economy is significantly related to the unbalanced development between real and virtual economy,with an important characteristic that many entity enterprises put too many resources in virtual economy.This paper attempts to analyze why firms participate in virtual economy and how their departure from real economy to virtual economy leads to industry's low-quality development.By setting up a duopoly game of firms producing complements,we study how virtual economy undermines firm's profitability through its influence on R&D investment,from the perspective of R&D spillover.Based on this,two propositions are proposed.The first proposition is the crowding out of R&D investment by the virtual economy,and the second proposition is that the virtual economy makes the entire market fall into the "prisoner's dilemma".Results indicate that high return from virtual economy can crowd out firm's R&D investment,thereby lead to a prison dilemma with low profits for each firm and the whole industry.By investigating data from listed companies in Yangtze River Delta,which is the most developed areas of manufacturing and also has a quite active virtual economy,and introduce the mediation effect to explore the conduction path of research and development inhibition,this paper finds that virtual economy does result in R&D inhibition,thereby damage enterprises' profitability.And the development of virtual economy respected by real estate industry can enhance this negative impact.The long-term development imbalance between the real economy and the virtual economy is an important reason for the current sluggish real economy in the Yangtze River Delta region and even the whole country.The article proves from a microscopic point of view that the excessive involvement of physical enterprises in the market in the virtual economy will have a more obvious crowding-out effect on their own R & D investment,which will eventually damage their own profitability.Therefore,this article proposes that the government should use market-oriented means to optimize stocks,build a deep integration of industry-university-research and technological innovation systems,improve the development of domestic multi-level capital markets,build new global value chains,and intelligently transform traditional industries to The coordinated development of traditional industries and emerging industries.