Capital Innovation Theory

As a special factor of production,Capital is the product of the socio-economic development in a certain stage.The most essential difference between Capital and other factors of production is that the goal of the Capital is to pursuit the profit,and it is always in a development of changes.Capital follows the general law in the process of the movement,it not only brought to the society a positive effect,but also brought many contradictions and problems to the social development.To take full advantages of Capital,to promote economic,political,cultural,social and all-round development,we must overcome inertia of the Capital,and bring the innovation potential of Capital into play.The purpose of this paper is more deeply on the basis of fully understanding the nature of Capital to study the innovation of the Capital and its practical value.With the development of the times,the connotation of Capital is constantly enriched,but the nature of its pursuit of profits has always been the same,this nature determines the Capital has an unparalleled advantage compared to the other factors of production--innovation potential.This paper revolves around the theme of "why Capital is the factor of production to be able to innovate",and takes Marx's "Capital theory" and its economic manuscript as the text,and uses the methods of text analysis,system analysis,historical and logical unity and so on.in order to research why Capital can innovate,comparing with other factors of production.The overall logical structure of this study is as follows:why Capital can be innovated(in addition to the promotion of innovation of the Capital determined by the internal nature,entrepreneurship,institutional supply and other external factors also promote Capital's innovation)—the elements of the Capital's innovation(including the reasons of Capital's innovation,the features of the innovation,the way of innovation)--the social significance of Capital's innovation(how Capital's innovation promotes social development and progress).Marx once said:"Since the Capital came to the world,from head to toe,every pore is dripping with blood and dirty things," in the work "The Capital" and his economic manuscripts,he exposed the evil of the Capitalist system,criticized the behaviors of the Capitalists as personification of the Capital to extracts the extraction of the residual value in maximize,we can see that Capital criticism is an important dimension of Marxist political economy theory.Nevertheless,Marx did not deny the positive role of Capital.He has repeatedly pointed out that the Capitalist system is more civilized in the way of squeezing surplus value than the backward slavery and serfdom.In the work "Communist Manifesto",Marx argues that "the bourgeoisie in less than a hundred years created more compared to the productive forces created in the past".Therefore,we should also affirm the positive role of Capital while exposing the brutal Capitalist exploitation and criticizing the negative effects of Capital.In the pursuit of surplus value,the Capitalist production methods shows its most greedy nature and higher efficiency,which greatly exceeds the mode of production in the past which were based on the mandatory work.In the beginning,Capital forced workers to produce for their own based on the existing production technology conditions,in order to pursue profits,it had to extend the working hours or increase labor intensity,but it can only take a limited surplus value-The absolute surplus value,then in order to pursue more surplus value,Capitalists must change the existing production methods,improve production efficiency.The nature of Capital determines that the Capitalists' pursuit of surplus value is endless,once the Capital cannot obtain profits,it will make a change as quick as possible,this change is innovation.It can create new production methods,update production technology,change the original production way and so on.Capital's innovation is the active subject-Capital to pursue profits,to constantly change the production technology and social organization.Based on the research of the characteristics of Capital,it is concluded that what Capital's innovation is.Capital's innovation is a behavior of economy,as a subject,the purpose of Capital is to get the profits.With the promotion of the other condition,such as culture,economy,politics,with the help of others,such as companies,government,people,Capital overcomes its inertia and factors which affect the pursuit of profits of Capital.Break the old economical system,recombine the productive factors and condition,rebuild the law and policy,assimilate the advanced culture,in order to build the modern market economy system and political system,to create free cultural atmosphere,and promote the all-around development of society.As can be seen from the definition,the basic factors of Capital's innovation include three aspects,the reason of Capital's innovation,the characteristics of Capital's innovation,the ways of Capital's innovation.Through the analysis and research on the connotation and elements of Capital's innovation,it can be seen that the Capital has been able to innovate.In addition to the internal factors of Capital,the external factors,such as ideology,culture and institutional environment,can also promote Capital innovation.At the same time,Capital's innovation also has a negative effect to the above factors:to establish a healthy and orderly modem market system,to form open cultural atmosphere,to establish a sound system and so on.Capital not only brings more profits to the society,but also has other important function,to build a healthy orderly modern market economy system,build almost perfect political system,create free cultural atmosphere.So the economical behavior of Capital's innovation not only brings profits to the economical subjects,but promotes social to develop.It can be concluded that Capital's innovation is as a driving force for the comprehensive development of society,taking obtaining profits as the fundamental purpose,promoting social and economic growth,technological innovation and ideological and cultural innovation,and makes important contributions to improvement of social systems.