analysis on the function mechanism of technological innovation promoting industrial structure upgrad

1、<p>　　Analysis on the Function Mechanism of Technological Innovation Promoting Industrial Structure Upgrad</p><p>　　Abstract. Industrial development is the important support for the development of a cou

2、ntry’s economy, and technological innovation is the main factor of industrial development. Technological innovation can improve the productivity of production factors and reduce the long-run average cost of an enterprise

3、 to make the enterprise realize benefit on a scale; develop new products, use new technology and occupy the market in advance to make the enterprise develop rapidly and obtain huge profits. We s</p><p>　　Key

4、 words: Technological Innovation, Industrial Structure Upgrading, Function Mechanism </p><p>　　1. Introduction </p><p>　　Industrial development is an important way for economic development and t

5、echnological innovation is the main measure of industrial structure upgrading. For China’s industrial structure upgrading and economic development in the future, it is very important what form should be adopted for our t

6、echnological innovation, what stage our technological innovation is at, and what policy guidance should be adopted by the government. A country’s industrial structure is always going from irrational to ratio</p>&

7、lt;p>　　2. Understanding of technological innovation </p><p>　　A consensus has been reached both at home and abroad that technological innovation is the important factor of development of modern society, i

8、ndustry and economy. Industrialization process or industrial structure upgrading is inseparable from enterprises, so we can think that enterprise is one of the main bodies of innovation. The concept of technological inno

9、vation research changes with time. The general understanding is that it is a kind of action that the enterprise realizes improvement and p</p><p>　　Broadly speaking, there are three common classification way

10、s for technological innovation: According to difference of technological level before and after innovation, there are two types: improved innovation and radical innovation. Improved innovation is a kind of slow, gentle a

11、nd gradual improvement in technology, which has low speed, small intensity and small “destructive effect”. Radical innovation means that the original technology has undergone a complete change; it is rapid in speed and h

12、a</p><p>　　2.2 Significance and application of technological innovation </p><p>　　Currently, technological innovation is a very common word both at home and abroad, but awareness and understandi

13、ng of it may be wrong. For example, there is an idea saying that technological innovation only has breakthrough in technology level; namely, it equals technological innovation to technological development, pays more atte

14、ntion to quality and promotion of technology and doesn’t mention whether the innovative result is consistent with the needs of market and whether it can create value an</p><p>　　According to different stages

15、 of a country’s economic development level, technological innovation must be divided into several steps; the first step is introduction of advanced foreign technology, being based on imitation innovation and promoting th

16、e upgrading of domestic industrial structure. Imitation innovation has the lowest risk and pays the smallest price, thus it is the road of innovation which must be passed through by underdeveloped regions and countries a

17、t the initial stage. We must st</p><p>　　3. Understanding of industrial structure upgrading </p><p>　　Industrialization refers to that industry occupies a large share in the economy of a country

18、 and becomes the largest one among three main industries and the main basis for development of a country’s economy. It is also a process in which the agriculture-dominated social structure turns into industry-dominated s

19、ocial structure. Industrialization process is fairly long and industrialization plays a great role in promoting of development and progress of human society. But the world’s large scale in</p><p>　　According

20、 to the Hoffman theorem, Leontief’s input-output method and research of Kuznets and so on, industrial structure upgrading is mainly manifested in three aspects: speed, trend and competition. It is specifically expressed

21、in that high and new technology is used a lot and spread in production process, intensive degree is enhanced and higher return to scale is achieved. This change also includes internal change and upgrading of various indu

22、stries. Take industry as an example, with the devel</p><p>　　3.2 Route of industrial structure upgrading </p><p>　　Generally speaking, industrial structure upgrading refers to that industrial en

23、terprise applies high and new technology, plays the main position of self-dependent innovation of enterprise, determines strategy of self-dependent innovation, conducts input for self-dependent innovation, takes the risk

24、, enjoys benefit distribution, transforms scientific and technological achievements into products and output in innovation, pays attention to the function of technology and environmental protection thr</p><p&g

25、t;　　3.3 Manifestation of industrial structure upgrading </p><p>　　Industrial structure upgrading is mainly manifested as that the enterprise uses advanced high and new technology during production process an

26、d creates new products; industrial production has returns to scale, and the enterprise is high intensive and rational; pay attention to heavy chemical industry in industrial structure and development and depth of industr

27、ial product processing and assembly industry; pay attention to the function of information during the development process of industrial ent</p><p>　　4.1 Technological innovation enhances productivity of prod

28、uction factors </p><p>　　Economic growth is the common result of input of labor, land and capital, among which labor’s contribution is the largest and labor’s output elasticity occupies an important position

29、. If we combine technological progress and labor input, whether it is promotion of technological knowledge, management knowledge or human capital, workers acquire labor skills through education and learning, thus greatly

30、 improving productivity of labor as a production factor, enhancing the ability to produce goods an</p><p>　　4.2 Technological innovation can reduce production cost of products </p><p>　　Innovati

31、on uses new technology and new forms of organization, improves productivity of production factor and reduces input of production factor, thus the enterprise’s production cost is reduced, it can buy more raw materials and

32、 production equipments, average cost declines, the enterprise’s production gets returns to scale and manufacturer’s profit gets increased. At the same time, due to decline in the cost of production and use of new technol

33、ogy and process, product price declines, but there a</p><p>　　Firstly, technological innovation can have destructive effects; it decomposes the existing production and industrial sectors, and forms new and m

34、ore suitable production departments which enjoy the trust. Secondly, it can transform the old production department to make it meet the requirements of new industrialization. An enterprise’s innovation degree is affected

35、 and restricted by many factors. In the early stage of industrialization, industrial enterprise has insufficient recognization of innov</p><p>　　4.4 Technological innovation promotes optimal allocation of in

36、dustrial resource </p><p>　　According to the general equilibrium theory, different markets are closely linked. Demand, supply and price of product market, production factor market, monetary market and labor

37、market have all kinds of connections with each other. Various markets are interrelated, if supply, demand and price of one market change, another market is bound to be influenced. If technological innovation is realized,

38、 supply, demand and equilibrium price of production factors will have corresponding changes, and this</p><p>　　4.5 Effect of technological innovation on market demand and supply </p><p>　　Techno

39、logical innovation leads to decline in average production cost of enterprise and decline in market price of products. According to demand principle and the law of demand, market demand will expand; it will have impact on

40、 demand structure of economic society and cause changes of production structure and supply structure of industrial enterprise at the same time. On one hand, increased demand demands more output, on the other hand, techni

41、cal progress makes the enterprise enjoy the benefit br</p><p>　　Self-dependent innovation is more in line with China’s national conditions and more suitable for market demand, but self-dependent innovation d

42、oesn’t mean that we close the door and do our own research, but that we should swallow anything and everything, utilize the world pattern of economic integration, absorb advanced foreign experience, improve China’s self-

43、dependent innovation ability and achievements and gradually upgrade industrial structure. In the innovation, we should give full play to </p><p>　　4.7 Effect of government’s support to technological innovati

44、on on industrial structure upgrading </p><p>　　According to the view of “surplus theory”, the externality of innovation brings consumer surplus and damages corporate interests, thus the government should com

45、pensate the enterprise; according to the view of “big project”, technological innovation needs huge investment and benefits the enterprise and the society a lot at the same time, thus the government should give the enter

46、prise some support. Government participation is mainly reflected in construction of national innovation system, such as </p><p>　　Foundation Porjects: Staged Achievements of “Study on Technology Convergence

47、in Coordinated Development of Regional Economy (12BJY023)” supported by National Social Science Foundation of China; </p><p>　　Achievements of Tendering Subject on Governmental Decision Research of Henan --

48、“Study on Henan’s New Industrialization Promoted by Technology Innovation”. </p><p>　　Reference </p><p>　　[1] Gong Weiping. Category Theory of Industrialization [M]. Economic Management Press, 2

49、001 </p><p>　　[2] Gao Hongye. Western Economics (The macro part), the Fifth Edition [M]. China Renmin University Press, 2011 </p><p>　　[3] Feng Zongxian, Wang Qing and Hou Xiaohui. Government In

50、vestment, Degree of Marketization and Technological Innovation Efficiency of China’s Industrial Enterprise. Quantitative & Technical Economics.2011（4） </p><p>　　[4] Xiang Benwu. Research on Technological

51、 Innovation Efficiency of China’s Industry. Scientific Research Management. 2011（1） </p><p>　　[5] Ren Baoping. Analysis on Market Structural Optimization of Enterprise Technological Innovation [J]. Heilongji