The Interaction Mechanism Between Technological Innovation And Industrial Organization Modularization

The world economy has entered into the information economy and internet economy era since 1980s. The traditional industrial economic production form is not adaptable to new trend:the consumer's individual requirements, the quickly change of the market, therefore the industrial organization gradually appeared modular. In this trend, vertical disintegration of the enterprise is more and more apparent; the division of task between the enterprises is more and more meticulous. In order to adapt to these changes, as a newly competitive method, technological innovation brings enterprise's core competitiveness improvement and enterprise value added. Those who quickly carry through technology innovation to the changing market often can achieve good economic benefit, get bigger market share. While if those make technology innovation negatively, respond to the market change slowly, they will be difficult to earn profit, even eventually be out of business.Facing this reality, I discuss the two-way interaction mechanism between the enterprise technological innovation and industrial organization modular, based on the theory of evolution economics and game theory. Technological innovation level is the basis of industrial organization modular. The industrial organization modular development speed depends on the speed and intensity of technological innovation. Technology innovation ability is the core competitive advantage of the industrial organization modular. Consequently, it is undoubtedly that the technical innovation can promote the development of industrial organization modular. From the perspective of evolution economics, we consider the industrial organization as an individual of the biological communities, the technical innovation as a gene which can influence and control the enterprise's behavior, the evolution of industrial organization as biological community change process, and then, in the process of repeated game, we establish an evolutionary game model. With the increasing number of game, the technological innovation decision creates much higher value for the enterprises, so as to prove the gene, technological innovation, can invades the original population, promote industrial organization modularization.On the other hand, in the condition of industrial organization modularization, the division between different enterprises is specific, the technology between different enterprises has relative independence, and the value between them has highly correlation and complementarities. Enterprise can expect to its innovative returns and risks. In addition, the modularization reduces and disperses the innovation risk, and enhances the enterprise technological innovation motive. We establish two game models:module suppliers and module integrators dynamic game model, module between suppliers dynamic game model. Through the method of game theory, we can show that the technological innovation is the optimal decisions of the enterprise in the situation of modularization.Subsequently, from the perspective of the technical innovation, we discuss the issue that "non-bordered organization" appears in industrial organization modular, and point out the future "silicon valley" type of modular organization is the development tendency of industrial organization modular, also indicate the limitations of this production organization modes. Finally, the paper discusses the modular trend appearing in the Internet of Things in our country, under the background of internet economy.