System Innovation In The Economic Development Of Zhejiang

With the continuous advancement of the society and economy,the relationship between the institution and economic development has been the growing concern.The former belongs to relation of production,the latter belongs to productive forces.Relation of production must adapt to the development of productive forces,while acts on the productivity at the same time, performances as "push" and "hinder" in both directions.Therefore,we should play a positive side actively to avoid its negative side.So,the only effective way is to build the systems of institutional innovation.How to build the effective system of innovation is important.In this areas,some foreign scholars have more studies.Domestic scholars also combine the China's specific national condition to make a number of studies.However,we must consider the the regional development gap in China.So,I select the "three decades since reform and opening-up economic development in Zhejiang Province institutional innovation system"as my study object.This article wishes to explore the reasons of the relative success of institutional innovation in Zhejing.This article has two main purposes:first,providing theoretical guidance to Zhejiang Province which through institutional innovation to promote sustainable economic development;second,provide a reference to other provinces and cities in the region that also hope to innovate institution to promote regional economy.Overall,this article studise the institutional innovation of the province to deepen and expand China's institutional innovation in economic areas,and contributes to a better understanding of relationships of micro-main,markets,and the government.In this paper,I use the history-materialist dialectics,theoretical analysis,empirical analysis,normative analysis,comparative study of theory,historical analysis,relatively static and relatively dynamic analysis.I also use the sociology,political science,psychology,behavioral science disciplines.The basic point of view are:First,the research of institutional innovation must combine the "time and space" features. Only the combination of certain features of the history and space,we can understand and grasp the system of institutional innovation truly.Second,the innovation power come from four aspects:(1) the prevalence of conflicts;(2) the prevalence of competition;(3) the existence of externalities;(4) the existence of uncertainty;(5) uncertainty of reform.This is an abstract conclusion.Specifically,these four aspects change when the "space-time" changes.For example,when the reform and opening-up began,Zhejiang innovation power came from five aspects:(1) an enormous potential benefits from the reform and opening-up;(2) the effective function of a market economy needs innovation;(3) shortage of resources;(4) less investment and control from country;(5) the uncertainty in the process of reform and market buliding.In the new stage,the innovation power come mainly from the economic globalization,knowledge-based economy,the marine economy and national regional development strategy and the opportunities and challenges that come from economic development.Third,the main factors of the economic institution innovation comes from three aspects, namely,market micro-main,market and government.The thrust of these three were also subject to the informal system,the development of productive forces and interest group constraints.The reason of relative success of institutional innovation is correctly handling the three forces relationship with the "space-time" changes,that is,the success is to choose the right path of innovation.Fourth,the path of economic institutional innovation can be classified as three levels:(1) micro-level:the central government-led supply;micro-main demand-led type;local government demand-led and micro-main demand-led type;the central government-led supply and local government demand-led;(2)meso-level:individual growth to a number of growth innovation; from the "point" to combination of "point,line and plane" innovation;the innovation from rural to urban areas;"Zhejiang" people as the carrier of innovation diffusion;"transfer industry" as the carrier of innovation diffusion;(3) The macro level:from the production areas to the trading areas, and distribution areas and finally to the consumer areas.Fifth,The next stage of economic institutional innovation in Zhejiang Province should pay attention to three issues,namely(1) must recognize the existing power of innovation clearly(the opportunities and challenges),the original power of innovation has been weakened;(2)the key point of innovation is the "coordinated interaction"t of the three thrust of the institutional innovation;(3) the second key of innovation is to improve "the productivity of the system ",and the ultimate goal is to improve the social productive forces.Sixth,the innovation mechanism should handle the relationship well between the four areas: (1) opening regional innovation culture;(2) the establishment and perfection of the modern market economy system;(3) construction of services-government;(4).to prevent the "government failure"We have to do is not the innovation of specific institutional arrangements but the innovation of "system innovation" environment,and guide the evolution of within institution to our ideals;secondly,to do a good job between innovation of exogenous institution and within institution. Institutional innovation is a tool of economic development,not our ultimate goal.Effective institutional innovation is a gradual process.Because any innovation must follow the law of self-evolution,or will lead to failure.Therefore,we should not only through institutional innovations to promote economic development,but also to avoid ineffective or even negative effect of institutional innovation.There are five chapters:the first chapter reviews the related theory,research ideas and methods from abroad and domestic;the second chapter reviews the institutional innovation since the reform and opening-up in Zhejiang and analysis of performance and features;the third chapter focuses the analysis of power and thrust of institutional innovation in Zhejiang;the fourth chapter focuses on the path of formation,development and proliferation of institutional innovation;the fifth chapter pionts a number of issues which Zhejiang Province should pay attention to in the next stage and proposes a mechanism to promote institutional innovation.This paper is only a start in researching the economic development of Zhejiang,with the further development of socio-economic,the studies of this paper need to improve continually.