Application Of Similarity System Theory In The Analysis Of The Economic Benefit Of Satellite Application Industry

Existing economic benefit evaluation models or methods for high technology industries usually require sufficient statistics. Satallite application industry, which is a sunrise high technology industry in China, so far is lack of integrated statistics. It's difficult to find an effective way to quantitatively estimate its economic benefit. Based on deep analysis on characteristics and rules of world satellite industry development, this paper applies Similarity System Theory to evaluate the economic benefit of China satellite application industry through the U.S. statistic data. It puts China satellite application industry into the integrated satellite industry chain which is composed of"Satellite Manufacturing - Launch Industry - Ground Equipment - Satellite Services"and transforms the U.S. satellite application industry system based on Similarity System Theory.The application of Similarity System Theory is as follows: first compare the difference between structure of China satellite application industry and that of the U.S.. Set up a rough China satellite application industry similarity system by extracting similar parts and eliminating different parts; secondly analyze the different development levels of China and the U.S. satellite application industries according to the characteristics and rules of world satellite industry development. Define each coefficient of satellite manufacturing, launch industry, ground equipment and satellite services of China and the U.S.; lastly refine the China satellite application industry similarity system by adding weights to each attribute.Based on data of Year 2006, we get the following results by applying Similarity System Theory: In 2006, China satellite industry (not including satellite navigation industry) generated $2.814 billion in revenues and identified a total economic impact of $6.7 billion to the national economy, among which satellite application industry (not including satellite navigation industry, same hereinafter) generated $1.6884 billion in revenues and identified a total economic impact of $3.55 billion to the national economy. The production induction coefficient of satellite application industry was 2.1044, which meant $1 billion final demand for China satellite application industry could generate $2.1044 billion in economic impact to the national economy. The economic benefit of China satellite application industry will be more with the development of satellite TV (DBS/DTH) services.To verify the above results, we evaluate satellite industry development levels of China and the U.S. by applying principal component analysis and cluster analysis. It proves the validity of performing Similarity System Theory since we get similar results.Applying Similarity System Theory to estimate economic benefit of an industry has never been reported. This research demonstrates that Similarity System Theory is an effective forecast model to evaluate industry economic benefit. It complements the existing economic benefit analysis models and presents considerable rationality and feasibility, as it combines qualitative cognition with quantitative analysis harmoniously. This paper supplies a new method for interrelated researches in the future although statistics validation and model modification need to be further improved.