The Innovation Research Of Liaoning Equipment Manufacturing Industry Based On Institution

The Equipment Manufacturing Industry is a general term that provides production technology and equipment through simple reproduction and expanded reproduction for a country’s national economy, that is, Machine Manufacturing Industry producing machines. It is the core of economic competitiveness and is called the “engine” of the industrial construction as well as the “mother” of industry development of a country.In the past twenty or thirty years, Chinese Equipment Manufacturing Industry, especially Liaoning Equipment Manufacturing Industry, develops rapidly relying on its advantage of low cost and plays a decisive role in the world market, particularly the low-end market of Equipment Manufacturing Industry, which has made a significant contribution to the rapid development of our national economy. According to the statistics of the United Nations, China’s manufacturing output reaches $ 2.45 trillion on the basis of the exchange rate at the beginning of 2012, which surpasses USA for three consecutive years and became the highest country of the world’s manufacturing output. However, in the high-end field, Liaoning Equipment Manufacturing Industry is still in weak position on the whole, although it has bright spot occasionally.In recent years, the advantage of low cost has gradually disappeared in Liaoning Equipment Manufacturing Industry and the advantage is gradually getting smaller in the low-end world market of Equipment Manufacturing Industry. The reasons are as follows: the rise of labor costs, the appreciation of RMB, the problems of environment, resources and so on. Meanwhile, Liaoning Equipment Manufacturing Industry has not made a substantive breakthrough in high-end field. If Liaoning Equipment Manufacturing Industry wants sustainable development, it must get rid of relying purely on the advantage of low cost and make a breakthrough in other areas, that is, innovation.From Schumpeter’s innovation theory, the author regards the whole development of Liaoning Equipment Manufacturing Industry as a process of continuous innovation, that is, from the cost innovation to the enterprise organization innovation along with technology innovation. Meanwhile, this paper quotes North’s Institution Change Theory and regards the change of innovation form as a process of institution change. Also, different forms of innovation correspond to different institutions. At present, Liaoning Equipment Manufacturing Industry is weak in enterprise organization innovation and technology innovation. Essentially, institution change is not successful, behind which there must be resistance from formal or informal institution.This paper argues that the biggest problem in enterprise organization innovation of Liaoning Equipment Manufacturing Industry lies in unsound reform of mechanism in state-owned enterprises, which leads to the imperfect selection mechanism of operator, the problems of capital structure and the low degree of vertical integration in state-owned enterprises. The problems in technology innovation of Liaoning Equipment Manufacturing Industry exist in inadequate investment of technology innovation, insufficient participation of colleges and universities and a serious brain drain due to “government standard” thinking.This paper sorts out and classifies all the above problems into three types: the problems of the reform of state-owned enterprises, the construction of informal institution and the improvement of technology innovation system. Meanwhile, according to these three problems, this paper puts forward the corresponding strategies and suggestions: to realize the reform of state-owned enterprise from “shareholder” to “creditor”, to construct the informal institution meeting the market demand and to increase the participation of colleges and universities in the innovation.