Enterprises, Innovation Incubation And Macroeconomic Fluctuations

Accelerate the implementation of innovation-driven development strategy and create the policy environment and institutional environment of the mass entrepreneurship and innovation is the source and fundamental guarantee of China’s economic development in the current situation and for a long period of time. This paper argues that knowledge innovation can’t have an effect on the economy directly, it needs to be hatched into the economic knowledge by entrepreneurs which includes the technology innovation and the management innovation, than it can have an effect on the economy through the economic knowledge. Therefore, the innovation incubation of entrepreneurs is the key to build and improve the innovative economic system.In this paper, the university-industry innovation system will be incorporated into the research framework of dynamic stochastic general equilibrium (DSGE) model, which contains enterprises, entrepreneurs and ordinary families. Meanwhile, this paper abandon the traditional technology shock and introduce a new shock of innovation incubator—the knowledge innovation shock is hatched into the economic knowledge by entrepreneurs. And this paper separate the Solow Residual into the economic knowledge and the institutional change to research the impact of the innovation incubator shock and the institutional shock which works on macroeconomic fluctuations respectively.This paper calculates the numerical simulation by using the Matlab software after the DSGE model has been linearized and the model parameters have been calibrated. We can find that the model can explain 94.91% fluctuations of output,98.61% fluctuations of investment,112.62% fluctuations of consumption,204.61% fluctuations of capital stock,65.70% fluctuations of entrepreneurs’ labor and 61.58%fluctuations of ordinary families’ labor. Overall, the model economy make a well explanation of the real economy, and has a well stability and predictability. Finally, by comparing the impact of the innovation incubator shock and the institutional shock which works on macroeconomic fluctuations, we can find that the shock of innovation incubator would have a more durable impact on the Economic System and fade more gently, and the institutional change shock could impact the Economic System more intensely and have a more rapid fading process.