Research On The Paths Of Industry Catching-up Led By Demand

Although the gap between developing countries and developed countries is narrowing,catching up through innovation is still a major and urgent issue for China.It is widely recognized that the catching-up should mainly be realized by narrowing the technology gap between China and developed countries.However,as China has become the second largest economy in the world,its huge and growing market demand and strong purchasing power are becoming another significant source of innovation.Therefore,how to make use of China’s unique demand advantage and huge growth potential to promote and enhance innovation capability,and then achieve industry catching-up has become a very important issue,especially under the current international new situation and China’s double cycle strategy.By constructing a history-friendly model,this paper studies the role and mechanism of demand-led innovation in China’s industry catching-up,and obtains the following main results through simulation:(1)Demand plays an important driving role in industry catching-up.Innovation and catch-up caused by the growth of demand size and the diversity of demand preference is a significant path of industry catching-up.When demand size and preference,technological capability,learning capability have been interacted,another industry catching-up path with more significant effect will be formed.(2)The growth of demand size can expand the scope of industry innovation,and the diversity of demand preference can increase the possibility of innovation success.However,expanding the size of demand alone is not enough to lead to the success of industry catching-up.Only when it plays a role with the diversity of demand preferences together,can it lead to innovation and achieve industry catching-up.(3)Demand-led technological capability promotes industry catching-up from two aspects:it accelerates the process of industry catching-up and intensifies the result of industry catching-up;The improvement of learning capability can provide the driving force for industry catching-up.As a necessary condition for industry catching-up,learning capability is complementary to the change of demand size and demand preference.The research results of this paper emphasize the significance of demand to industry catching-up,and have important theoretical and policy importance to promote innovation and industry catching-up by taking advantage of its own unique demand advantage for China.