Research On The Influence Of Independent Innovation On The Upgrading Of Manufacturing Industry

After the financial crisis, "return to manufacturing industry" was put forward by reflected on the relation between real economy and virtual economy. This kind of return is not a simple repetition, but a return to the new manufacturing industry which take independent innovation as the drive. Therefore, manufacturing industry upgrading once again became the focus of competition among different countries. Chinese manufacturing industry development has entered the last stage, with industry upgrading appeared bottleneck. Compared with developed countries, China manufacturing industry value-added level is relatively low. Since 2008 our country manufacturing industry did not only upgrade, but also occurred retrograde phenomenon. The plight of China’s manufacturing industry upgrading comes from the former stage of China’s industrialization processed mainly by investment, which focused on increase of added value, instead of quantity growth. Therefore, how to effectively promoting the upgrading of Chinese manufacturing industry is an urgent problem to be solved. Currently, our country repeatedly put forward the concept of public entrepreneurship and innovation of peoples’, willing to independently accelerate innovation as the drive to promoting the upgrading of Chinese manufacturing industry.Industry upgrading can be defined as industrial structure upgrading or industrial chain upgrading. A large number of scholars have discussed the relationship between independent innovation and industrial structure upgrading and the relationship between global cooperation and industrial chain upgrading in existing literature. While, relatively few scholars discussed the relationship between independent innovation and industrial chain upgrading. Even there is no empirical method to test the relationship between those two. Therefore, the author study the relationship between independent innovation and Chinese manufacturing industry upgrading through theoretical analysis and empirical test based on industrial chain perspective.Smile curve theory is the foundation of industry upgrading. Independent innovation enhances the level of added value to promote industry upgrading in several ways:(1) innovation stimulates the market demand; (2) innovation promotes enterprise technology innovation; (3) innovation promotes the flow of the main factors in the industry; (4) innovation guides the international trade status changes. Through the study of the characteristics of Chinese manufacturing industry, the author found that:(1) manufacturing industry in our country locates in the low-end position of the global value chain, which resulting in a larger gap of additional value between the developed countries and our country; (2) In the early stage of industrialization, our country stimulates economic growth through investment, which lead to the oversupply of production capacity. After the outbreak of the financial crisis, the declining of domestic and external demand revealed excess capacity, so that added value level of Chinese manufacturing industry decreased year by year. Through examines the fact of our manufacturing industry independent innovation, and analysis the relationship between enterprise ownership, industry concentration and independent innovation, the author found that:(1) foreign enterprises, Hong Kong/Macao/Taiwan fund enterprises and mixed ownership enterprises are the backbone of manufacturing industry innovation in our country; private enterprises have certain innovation advantage, but the overall innovation capability of them needs to be improved; state-owned enterprises input the most innovation, but output the least efficiency; the innovation ability of collective enterprise is poor; (2) the innovation behavior of enterprises in oligopolistic market is the most active; the low industrial concentration and enterprise scale difference are the important factor restricting enterprise innovation; administrative monopoly is not conducive to enterprise innovation, either. Finally, the author made empirical test to examine the relationship between independent innovation, per capita capital, industrial concentration, enterprise ownership and industrial upgrading. The empirical results showed that:(1) independent innovation has positive effect on promoting industrial upgrading; Although innovation input level in traditional industry is relatively low, it promotes industrial upgrading more obviously than in high technology industries; (2) per capita capital has a positive effect on promoting industrial upgrading; (3) the higher industry concentrated degree, the higher industrial upgrading level; (4) the higher the proportion of foreign/Hong Kong/Macao/Taiwan fund enterprises, the higher industrial upgrading level.At the end of this paper, the author summarized the previous research results, and put forward the countermeasures and suggestions of Chinese manufacturing industry upgrading. (1) solving the problem of excess production capacity in China; (2) enhancing the independent innovation capability of China’s manufacturing industry; (3) paying attention to the upgrading of traditional industries in China.