| Technological innovation in enterprises is of great significance in the economic development of our country. It is relating the enterprise, the entire industrial competitive advantage and the prospects for development. There is different understanding about the technological innovation. If regards it as the method which the enterprise obtain the competitive advantage, it is an enterprise's behavior for the purpose of promoting the barrier to entry. If regards it as an important content of technology advancement, it is a key evaluation index of economical achievements target. Anyway, it should obviously relate to the market structure. This article analyzes the effect of market structure on technological innovation. It attempts to explain technological innovation capability and motive of the enterprise are stronger under what kind of market structure. It takes the way of experience research, by the data amendment and adjustment and basis econometrics software in order to prove whether the conclusions of the market structure and technological innovation in the western industrial organization theory could be established in China.After the classic controversy between Schumpeter hypotheses and neo-classic theory on"how monopoly influence the innovation", these are a large number of researches focus on it and have not form a unanimous conclusion yet. Base on the basis of commentary on existing empirical researches, the article discusses how market structure affects technological innovation under three situations: perfect competition, monopoly and intervenient market structure. The article performs a empirical analysis on the panel data of China's manufacture sectors, it analyzes the influences of market structure to the technological innovation of enterprises in reference to the capability and motive. The results tell the invert-U relationship between market concentration rate by Herfindahl-Hirschman index and innovation input, the subtractive relationship between market concentration rate and innovation output. It also illuminates that monopoly and competition market structure should be propitious to technological innovation.Finally, according to result, considering the complexion that excessive competition and administrative monopoly combine exist in our country, we proposed some measures, such as standardizes and controls non-monopoly competition; suitably expands the enterprise scale; harmonizes the relationship between big and small enterprises, in order to promote cooperation; relaxes the administrative control, establishes monopoly and competition market structure pattern. In order to promote technological innovation of our country enterprise, thus enhances our country enterprise the international competitive power. |