Research On China’s Industry Modularity Upgrading Path From The Perspective Of Technological Innovation

As we all know,industry is the foundation of a great country.Especially since the reform and opening up,China’s industry has obtained great development.In 2010,the amount of China’s industry was bigger than it of The United States and China got the first place in the world.However,the industry of China is still in a “big but not strong”state and the industry increasing value rate is far lower than it in developed country.Furthermore,it is facing “double squeezing” dilemma making by industrialized countries and other emerging countries.In this paper,it researchs the problem how China’s industry gets out of the dilemma through upgrading.First of all,it simply makes a prospect of industry modularizing upgrading by inducing the trend of future industry developing which is proposing through summarizing the experience of industry upgrading and the strategy of reindustrialization of the United States,Germany and Japan.Then considering the developing stage of China and on the basis of theories of modularity and industrial upgrading,it constructs a theotetical analysis trinity-framework of modularity-property-marketization which is endogenous technological innovation via a intermediate variable of technological innovation.Finally,based on China’s industry panel data from 1999 to 2011,it makes a empirical research by using fixed effect model.The conclusions are:first,the higher degree of industrial modular has a strong positive effect on industrial upgrading by promoting technological innovation.Second,state-owned equity is negative to industry upgrading due to the insufficient motivation to technological innovation.Last,more perfect market mechanism and higher degree of marketization conduct more technological innovation and then promote industrial upgrading.Basing on above conclusions,the main implications in this paper are following(1)On the behalf of goverment,some measures should be taken to promote industrial upgrading,such as adopting active industrial organization policy for boosting the degree of modularity,deepening state-owned equity reform and market-oriented reform and so on.(2)For the entrepreneurs,facing opportunities and challenges,they should enhance the core competitiveness of enterprise through seizing the comparative advantage modular by walking on modular development path.