The Performance And Path Evolution Of Product Innovation

At present, the irrational structure of industrial growth power is a radical crisis, because the maim power system is still the investment expansion and the demand stimulation which are all depend on the government, but the growth of investment, demand and output which driven by industrial innovation are not the maim power system. We insist that there are two causes of it. The one is that many corporations are facing surplus press, cost increasing and low rate of profits, so product innovation should be an important tactics to move away the market press. For the other one, the innovation capacities of many corporations are still rather poor, and they have to imitate other’s product, so they usually fall in the dilemma that they will have to wait to death if they don’t innovate, or they maybe look for death if they innovate. Thus we must improve the upgrade and evolution of the product innovation path in order to develop the innovation capacities of many corporations, and product innovation can drive investment, demand and output and become an important endogenous power of industrial growth. This paper involves jobs as follows:In the first place, we analyze the influence to economic growth of product innovation in detail. We first analyze the performance of product innovation in different fields such as science and technology innovation, industrial development, economic endogenous growth and macroeconomic fluctuation. Then we analyze the performance of product innovation by some historical case in Japan and US at different time, including in China. We also give an empirical analysis on the performance of product innovation in last twenty years in our country, and we find by comparison that there is a better performance of product innovation than it of investment. In other words, it can improve economic growth more efficiently, and become a more important power system.Secondly we analyze some factors influencing on product innovation, and analyze empirically the performance of some influence factors. We first carding and classify the factors influencing on product innovation, and summarize some famous researches and arguments, and we insist that some factors are important such as technology, market, process upgrading, government support, Macro-economy condition, and so on. Then we summarize comprehensive influence factors of open product innovation based on the last theory of open innovation. We also give an empirical analysis on the performance of some influence factors in industrial corporations. We find that the input of upgrading process and equipment can produce more positive effect on product innovation than the input of developing new product based on time-varying parameter model, and the input of developing new product can give a little influence on the sale income of new product based on structural vector auto-regression model (SVAR). However, the sale income of new product or the demand of new product can improve the input of developing new product effectively. We also find that GDP growth almost have no influence on the input of developing new product.Thirdly we put forward a new analytical paradigm and a comprehensive dynamic framework based on the summary and analysis of the path and its evolution of product innovation. The form and tactics of product innovation usually comply with a special path. The resources and factors have different performance in different path. This will lead to different capacity, form and tactics of product innovation, and will carry out different path of product innovation and its evolution orientation. So we summarize and suggest three paths of product innovation such as the path of imitative innovation, the path of innovation after introduction, and the path of radical independent innovation, and then we suggest three evolution orientations of product innovation paths such as path sustaining, path up-grading and path backing. We also introduce some relative theories into the evolution theory of product innovation path, such as the contingency theory, the resource-based view, the core competence theory, and the resource-based view of open innovation. So we bring forward a new analytical paradigm using to analyze the path evolution of product innovation based on the classical paradigm of technology and economy, and the chain-linked model. The new paradigm is "Input (structure), Path (evolution), performance (feedback)". And then, we analyze the evolution system of product innovation path, and suggest a comprehensive dynamic framework based on t new paradigm and the system. Through the analysis with the framework, we find that if the corporations want to succeed in upgrading of the path of product innovation, their technologic aggregate must be enough effective to meet the demands of knowledge and function in the new product from the innovation race among corporations and the consumer preference. Conversely this gives an explanation just for the path backing of product innovation path in our corporations in the case of the high growth of the inputs of product innovation.In the forth place, we give an empirical analysis on the path evolution of product innovation in our industrial corporations. We first judge roughly the evolution tendency of product innovation path with the existing documents and the change trend of the input structure of science and technology, and we find the main trend of changing from the path of imitative innovation to the path of innovation after introduction. Through the empirical analysis we find that it is still a efficient path of product innovation which to imitate other’s product by buying modern machine, and the high input of developing new product don’t carry out high output of new product. Thus it means that the path up-grating of product innovation in our corporations may come to the risk of path backing. In other words, the path of product innovation will back from the path of innovation after introduction to the path of imitative innovation in some corporations.In the end we insist that in order to improve the continual up-grading of product innovation path, product innovation should be at a rather important station in the national innovation strategy. So some systems about product innovation should be innovated. We need to strengthen the interaction between the Macro pumping policies and the Micro actors. We also need to manage separately the big innovation objects and the little ones, and then support the big objects of product innovation with the concentrated resources and finance in order to carry out some radical product innovation and to enhance their effect of proliferation, derivation and relation. At the same time we also need to improve the flowing of social innovation resources to middle and little firms through market system, policy tools and long-run mechanism.