Theoretical And Empirical Study Of The Optimal Market Structure Of Technological Innovation

After reviewing the studies both at home and abroad, on the basis of the SCP framework to instrument for the theoretical analysis, the enterprise market through a new awareness of behavior, enterprise behavior will be divided into price competition and non-price-competitive conduct two categories, and non-price competition is divided into technological innovation acts and acts of non-technological innovation (advertising, collusion, rent-seeking, etc.). These are the goal of profit maximization of the enterprise may choose to act, so between them there are alternatives: in the Perfect Competitive Market, the main competition is price competition; in the monopolistic competition market, the competitive behavior by pure price competition into the competitiveness of product differentiation (different from technological innovation of the product); and in oligopoly markets, technological innovation, an act which is an important market behavior, but because of advertising, collusion, rent-seeking and other non-technical Innovate acts making handsome profits, businesses will be more resources into the behavior of non-technological innovation; complete monopoly in the market, major energy companies are focused on maintaining its monopoly position in technological innovation for the possible emergence of an absolute decline or relative decline, while the rent-seeking, the acquisition of potential competitors and other non-technological innovation into a more active behavior. Enterprises because of the objective is to maximize profits rather than the level of technological innovation to maximize the objective, therefore, the monopoly of the market structure and technological innovation of the relationship between the level, there may be increased at first, then reversing the decline in Inverted U-relations, After the first rapid increase or slow increase until the S-type relationship between stagnation.In empirical part of this article, using the two-thirds of China's manufacturing industry-bit data, the relationship between the test and found that market concentration in the market structure measure of the level of technological innovation, showing a relationship between S-type, but not found inverted U-relationship. Therefore, most conducive to technological innovation of manufacturing efficiency of the market structure in the middle level of market concentration. According to this conclusion, we have made the manufacturing sector for China to promote technological innovation policy recommendations.