The Influence Of Factors Market Distortions To The Industrial Enterprise Independent Innovation

Since our country canceled the product market price double track until now, the basic formation of a unified, competitive product markets, however, relatively lags market-oriented reform process of factor market, labor, capital, land and other important production factor market distortions are widespread, the price of these elements to a great extent, long-term deviate from its equilibrium level, lead to market distortions. For the industrial sector, factor price distortions is more outstanding. This article is based on the elements of China's industrial economic distortions and influence on the enterprise independent innovation launched relevant theory and empirical research.In this paper, using the stochastic frontier production function approach to capital market and calculates the degree of labor market distortions, found that the factors of capital and labor prices in China are negative distorting, and a slow rise. Using Chinese provincial panel data from 1997 to 2011 large and medium-sized industrial enterprises inspected the factor market distortion on the influence of R&D input and regional differences. The results show that the distortion factor market and R&D investment in R&D effort has a different effect, and depressed the increase of R&D capital investment, promote the R&D effort; And its impact on both there are significant regional differences. In this paper, the study found that at the same time factor market distortions of R&D effort is not the same before and after China joining WTO, the influence of influence declined significantly after then. This suggests that the WTO after the rapid development of the factor market to promote the rational flow of R&D manpower, thereby significantly reduces the distortion factor market positive influence on R&D effort.This paper confirms the elements of market distortions is one of the important factors in R&D input differences between regions, as well as the improvement of region itself factors can successfully avoid factor market distortion effect of R&D input; This suggests that regional market development and development can not only by advancing elements to promote R&D ability, can also according to their own situation, in promoting economic development and the fiscal revenue, improve the level of human capital and degree of opening to the outside world and clear property right system and so on under the full time to effectively circumvent the factor market distortion effect of R&D input, and thus to produce adverse effect of enterprise independent innovation ability promotion.