Research On The Lock-in Effect And The Independent Innovation Strategy Of Chinese Enterprises

The strategy of constructing innovative nation should be realized through independent innovation by our own enterprises. The independent innovation should follow the basic rules. Lock-in is one of the basic rules in the process of technology development. However, there have been few researches on the function mechanism of lock-in in the process of independent innovation in Chinese enterprises at present. So the study on this issue might have great significance in directing our enterprises'independent innovation.Lock-in means the current choices are constrained by the previous choice. It was firstly brought forward by W. B. Arthur when discussing the affection of self-reinforcing mechanisms in occupying the market with competitive technology. From the time when W. B. Arthur found the phenomenon of lock-in to now there have been rich achievements on the study of it. But lock-in effect has not been probed into forwardly as an independent object. Shapiro C. and Varian H. thought it switching cost that caused lock-in. In the view point of this paper, it was not overall to consider this effect only from switching cost as lock-in is the constrained decision and the cost is not the only factor. This paper elicited the choice formula of switching actions by studying the decision of the subject when changing actions. The choice formula of switching actions showed that lock-in effect did not only depend on switching costs, but also depended on the payoff and opportunity costs of the switching choice. Through analyzing the effect of previous decision actions to present choice formula of switching actions, this paper pointed that the previous decision could lead to reversion of the present choice formula of switching actions and lock-in by ways as follows: increasing income of locked-in actions,reducing cost of locked-in actions,increasing unlock-in switching cost,reducing income of unlock-in actions or by all these means concurrently. It was showed that by the factors such as increasing returns, asset specificity, compatibility, uncertainty and risk reverse, bundled rationality and group selection, the previous choice changes the balance of the switching formula and leads to lock-in. On this the basis, according to the factors of affecting the choice formula of switching actions this paper put forward tactics of overcoming and using lock-in: changing actions would happen on the condition that(1) increasing income of unlock-in actions; or(2)reducing cost of switching actions; or(3)reducing opportunity cost of switching actions. And these could be realized by reducing prophase investment,reducing risk of switching actions,reducing asset specificity and increasing income switching coefficient and so on.The strategy of independent innovation is of great significance for our nation. It should be realized by Chinese enterprises. A lot of researches showed the importance of the lock-in effect in the process of competitive technology development. The analysis of predicaments and opportunities caused by lock-in in technology innovation could be benefit for the independent innovation of Chinese enterprises. However, up to now there have been few studies on lock-in effect in the technology innovation in Chinese enterprises. On the basic of analyzing the predicaments of Chinese enterprises in the process of technology innovation and the economic nature of lock-in, this paper revealed three main predicaments: the encumbrances to enhancing the independent innovation ability of our national enterprises-"the leap trap of technology ability",the holdbacks to marketing extending of the new product of our national enterprises-"the target customers lock-in"and"the technology standard lock-in"which used by advanced countries in connection with developing countries in comprehensive technology innovation. Then, through applying tactics of overcoming lock-in and taking advantages of lock-in effect, integrating results in existence and summarizing experiences of successful corporations, this paper brought forward tactics to overcome three main lock-in predicaments in independent innovation of Chinese enterprises: the technology enhancing tactic based on effective R&D,the tactic of overcoming customers lock-in and the tactic of founding anti-abusing technology standard rule,the tactic of executing technology standard to overcome technology standard lock-in. After expatiating predicaments caused by lock-in and solving means, this paper discussed several positive effects that lock-in could bring to technology innovation. It also pointed out tactics and principles of using lock-in. This theoretical analysis was strongly proved by the domestic and overseas business cases.The innovations of this paper can be showed in three aspects as follows:(1) This paper summed up the achievements in existence about lock-in effect, put forward the choice formula of switching actions, analyzed factors which cause lock-in and brought forward tactic frame to overcome lock-in effect and make use of it. (2) This paper analyzed three predicaments of Chinese enterprises during independent innovation. By lock-in effect analysis frame, this paper gave policy suggestions of overcoming and using lock-in effect in the independent innovation of Chinese enterprises.