Research On China’s Manufacturing Industry Contribution Rate Of Technological Innovation From2001to2011

This paper focuses on the contribution rate of technological innovation in China’s manufacturing sector which has been staying in middle-income stage for a long period. Relying on Slow Residual method basing on C-D production function and Non-parametric Malmquist Index, this paper analyses the sample data of china’s manufacturing ranging from2001to2011. The result manifests that manufacturing’s capital elasticity of output is0.69, which is much higher than its labor elasticity of output which is0.31. It means that the accumulation of labor forces is slow and the using rate of labor forces is low in China’s manufacturing sector. Calculating and decomposing China’s manufacturing TFP (Total Factor Productivity), we can easily find that technical efficiency is a drag on the contribution rate of technical progress to output growth rate. As a result, the contribution rate of technical innovation to the output growth rate of domestic manufacturing sector is only45.58%, which indicates that China’s manufacturing industry is still in a stage of extensive growth of factor driven.According to the results of empirical analysis and the comparison with Japan, Korea and other advanced manufacturing countries, this paper concludes that the driving force of technological innovation of China’s manufacturing is seriously weak. Though the knowledge and technology diffusion effect among various sub-sectors of the manufacturing industry is notable, the overall level of knowledge and technology is quite low. The quality and the quantity of the manufacturing sector are inconsistent, which is far from the pattern of innovation-driven. In view of the problems in China’s manufacturing sector, we should take the following measures at least so that we can promote manufacturing sector to upgrade and step into stage of innovation driven. First, promote technological progress and technical efficiency to cooperate and develop with each other; second, increase the inputs of technological innovation resource; third, create a favorable institution environment for independent innovation; fourth, foster strategic emerging industries; fifth, build networks of technology innovation.