The Externalities Of Regional Innovation Formation Mechanism And Industrial Upgrading

In an increasingly advanced information technology and the changing economic environment, the enterprises in order to survival and development, had to use all the external environment and a variety of resources available to improve their own technology and innovation. As an systematic innovation institutional arrangement, the Innovation networks emerged (Imai and Baba,1989), to help the enterprises access to external resources to achieve to improve their own skills, innovation, human capital accumulation and sustainable competitive advantage an important choice.As we all know, externalities refers to the behavior of economic agents which cause positive or negative impact on others, but others do not have a appropriate compensation as their behavior. So, any behavior of economic agents, as long as the behavior can be observed, other subjects might be affected, resulting in some kind of externality. Regional Innovation Network which is a regional organization that in a certain geographic space, constituted by production enterprises, research institutes and universities and other higher education institutions. In the network society, various network-related environmental factors will be affected by the network, the externalities of regional innovation network has a very important impact on industrial upgrading.over the years, Scholars have in-depth inquiry in the theory of industrial upgrading, the upgrade path, upgrade mechanism and other aspects of government management measures; The externalities which related to entrepreneurs collective learning, knowledge spillovers, increasing returns, the accumulation of social capital studies have corresponding effects, etc., but lack of systematic,Therefore,papers from the view of externalities, to explore the formation mechanism of network externalities, and from the positive and negative externalities outside perspective to analyze its impact on industrial upgrading mechanism, designed to provide a different perspective for the upgrade of Industry Analysis for a variety of industrial upgrading strategy provides theoretical reference.By analize the formation mechanism of network externalities, found that the externality arises is because of the network related entities through the interaction of market mechanisms result.And from a detailed analysis extracted some factors which significantly affect industrial upgrading, including knowledge spillovers, joint research, highly competitive and economies of scale, and then analysis how these factors affect industrial upgrading and while they promoting industrial upgrading,what bad things will come to the industrial,such as organizations tend to imitate, lemon market and overcrowded phenomena, in order to strengthen the persuasiveness of this article, the paper select a single case to validated, the impact of the mechanism proposed has be verified, and obtain the final conclusions.