The Research Of China's Competitive Advantage Of Manufacturing Industry Based On Technological Innovation

The competition of international trade between countries has transferred from factor endowment level to the technological level. In the reasons of influencing an industry to acquire competitive advantage, technological innovation is one of the most important facts. So more and more authors concentrate on the study of technological innovation and industries' international competitiveness. There are two main methods to research on the relationship between the technological innovation and international competitiveness. One is analyzing by building and deducing a pure theoretical model, the other is to find the relationship between them by collecting and analyzing the world manufacturing industry data and index.This paper selects 21 departments of China's manufacturing industry as the research sample and makes regression analysis by CDM model based on the panel data from 1996 to 2006. The result shows that although part of the Chinese manufacturing industry has a strong international competitiveness, these industries are still mainly in the non-technology-intensive industry, so the manufacturing sectors between China and developed countries do not form a direct competition relationship. In this paper we also find that there is a positive correlation between the scientific and technological innovation input and output. Furthermore, we have the result that the scientific and technological activities play a positive role in our country's manufacturing industry.