Institutional Quality, Transaction Efficiency And Regional Innovation Capabilities

With the advent of the era of the knowledge economy,innovation capabilities have become new competitiveness.Innovation will be the main driving force for the economic development of various countries and the way to win competition among countries.From the perspective of China’s policies,the State Council issued 48 policies aimed at promoting the development of China’s innovation and entrepreneurship from 2012 to 2018.In September 2014,Premier Li Keqiang also proposed "mass entrepreneurship and innovation for all," showing the importance of innovation.Before Schumpeter put forward the concept of innovation in the sense of economics,the process of innovation was technological progress.The classical and neoclassical schools took technological progress as an input element,but did not study where technology advances came from.Based on this,It will be very necessary to study the driving factors and internal mechanisms of regional innovation capabilities.From the current research status,scholars mostly focus on the research on the impact of research and development investment,property rights system and other aspects on innovation capabilities.The transmission mechanism remains to be explored.In China,innovation is almost equivalent to the production of knowledge,such as patents,papers,and other achievements.How is knowledge produced? This problem should be based on the core theory of economics,the theory of evolution of division of labor.This article analyzes the transmission mechanism from the perspective of the evolution of division of labor.According to the theory of emerging classical economics,in the process of division of labor,the increase in transaction efficiency leads to an increase in the number of intermediate products,the division of labor gradually deepens,and the intangible intermediate products are also separated.The knowledge is exactly It is produced in this process,so this article believes that the essence of innovation is the process of evolution of division of labor.Combined with the viewpoint of new institutional economics,it is precisely in the process of economic production that the existence of transaction costs hinders the deepening of division of labor,and the emergence of institutions can well reduce transaction costs.Therefore,this article combines these two theories to analyze the quality of institutions The internal mechanism between the system and the regional innovation capabilities strives to make improvements to existing research and enrich existing research results.In the empirical aspect,by constructing panel regression model and referring to the method of Strategic Development Research Institute,the data of 2002-2017 in 39 countries with active scientific and technological innovation activities are selected for empirical analysis,and the contribution of six decomposition indexes of system quality and system quality to regional innovation ability is examined layer by layer.On this basis,39 selected countries are divided into higher income and higher income according to the index of per capita GDP Lower income countries explore the impact of institutional quality on regional innovation capacity.In terms of variable selection,the core explanatory variable system quality is the synthesis of six indicators of global governance indicators by principal component analysis.It is found that the institutional quality of 39 countries or high-income and low-income countries has a significant positive effect on regional innovation capacity.In addition,R & D investment and human capital can promote the improvement of regional innovation ability.Among the six decomposition indexes of system quality,political stability,government efficiency,control quality and rule of law have significant and positive effects on regional innovation ability,while the coefficients of discourse power,accountability and corruption control are also positive,but the impact is not significant,which shows that the government has a series of control and support for R& D innovation Formal and informal institutional quality can create a good environment for innovation.Therefore,it is very important to improve the regional innovation ability by strengthening the management of system quality,reducing the transaction cost,improving the transaction efficiency and promoting the deepening of division of labor.At the same time,we should pay attention to the investment in R &D innovation,human capital,infrastructure construction and other aspects,reasonably treat the role of foreign investment in regional innovation capacity,and strengthen independent R & D investment.After verifying the direct impact,the transaction efficiency was introduced into the model as an intermediary variable,and the intermediary effect was analyzed.The results show that the quality of the system can affect the improvement of regional innovation capabilities by improving transaction efficiency.