single-jc.php

JACIII Vol.21 No.6 pp. 1048-1055
doi: 10.20965/jaciii.2017.p1048
(2017)

Paper:

Innovation Path of Manufacturing Enterprises and Strategies for Transformation and Upgrading in China

Guangtong Gu*,**,***,† and Bing Xu***

*School of Economics and Management, Zhejiang A & F University
Hangzhou, Zhejiang 311300, China

**Center for China Farmers’ Development of Zhejiang
Lin’an, Hangzhou, Zhejiang 311300, China

***Research Institute of Quantitative Economics, Zhejiang Gongshang University
Hangzhou, Zhejiang 310018, China

Corresponding author

Received:
December 25, 2016
Accepted:
May 2, 2017
Published:
October 20, 2017
Keywords:
manufacturing enterprises, enterprise transformation, innovation path, research and development, capital investment
Abstract

The economy is facing transformation and technological upgrading, which is particularly imperative to upgrading the real economy in China. It is well known that manufacturing is the core of the real economy. Therefore, insights into the innovation path of manufacturing enterprises are helpful in understanding problems that exist, and they suggest future strategies in manufacturing innovation. In this paper, based on historical data from 2000 to 2014, Bayesian methods and time-varying parameter dynamic regression models are used to identify the innovation path of manufacturing enterprises. This paper shows that the relevant research departments within firms need to improve the efficiency of research and development (R&D) institutions and mobilize the enthusiasm of full-time R&D personnel to provide a solid foundation for innovation, and transformation, and upgrading of the manufacturing industry. The paper also shows the need to improve the efficiency of R&D investment and new product R&D investments. In addition to independent R&D, manufacturing enterprises should also increase the adoption of foreign technology into their own manufacturing processes. Finally, some future strategies with regards to transformation and upgrading are discussed.

References
  1. [1] G. Ahuja and C. M. Lampert, “Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions,” Strategic Management J., Vol.22, Issue 6, pp. 521-543, 2001.
  2. [2] A. Phene, K. Fladmoe-Lindquist, and L. Marsh, “Breakthrough innovations in the u.s. biotechnology industry: the effects of technological space and geographic origin,” Strategic Management J., Vol.27, Issue 4, pp. 369-388, 2006.
  3. [3] D. T. Coe, E. Helpman, and A. W. Hoffmaister, “International R&D Spillovers and Institutions,” C.E.P.R. Discussion Papers, Vol.53, pp. 1-35, 2008.
  4. [4] G. M. Grossman and E. Helpman, “Quality ladders in the theory of growth,” Review of Economic Studies, Vol.58, Issue 1, pp. 43-61, 1991.
  5. [5] W. M. Cohen and D. A. Levinthal, “Innovation and learning: the two faces of R&D,” Economic J., Vol.99, Issue 397, pp. 569-96, 1989.
  6. [6] Y. Kinoshita, “R&D and Technology Spillovers via FDI: Innovation and Absorptive Capacity,” William Davidson Institute at the University of Michigan, 2000.
  7. [7] J. A. Schumpeter, “The theory of economic development: An inquiry into profits, capital, credit, interest, and the business cycle,” Transaction Publishers, 1934.
  8. [8] R. M. Solow, “A contribution to the theory of economic growth,” The Quarterly J. of Economics, Vol.70, Issue 1, pp. 65-94, 1956.
  9. [9] P. Howitt and P. Aghion, “Capital accumulation and innovation as complementary factors in long-run growth,” J. of Economic Growth, Vol.3, Issue 2, pp. 111-130, 1998.
  10. [10] P. M. Romer, “Are Nonconvexities Important For Understanding Growth?,” American Economic Review, Vol.80, Issue 2, pp. 97-103, 1990.
  11. [11] J. Chen, “Development of chinese small and medium-sized enterprises,” J. of Small Business and Enterprise Development, Vol.13, Issue 2, pp. 140-147, 2006.
  12. [12] A. Zhang, Y. Zhang, and R. Zhao, “A study of the R&D efficiency and productivity of chinese firms,” J. of Comparative Economics, Vol.31, Issue 3, pp. 444-464, 2003.
  13. [13] P. M. Romer, “Increasing returns and long-run growth,” J. of Political Economy, Vol.94, Issue 5, pp. 1002-37, 1986.
  14. [14] J. Schmookler, “Invention and Economic Growth,” Harvard University Press, 1966.
  15. [15] J. Bound, “The disincentive effects of the Social Security Disability Insurance program,” Harvard University, 1987.
  16. [16] P. Beneito and A. Sanchis-Llopis, “Ownership and the cyclicality of firms’ R&D investment,” Int. Entrepreneurship and Management J., Vol.11, Issue 2, pp. 343-359, 2015.
  17. [17] P. Boeing, E. Mueller, and P. Sandner, “China’s R&D explosion analyzing productivity effects across ownership types and over time,” Research Policy, Vol.45, Issue 1, pp. 159-176, 2016.
  18. [18] J. Humphrey, H. Schmitz, “Governance and upgrading: linking industrial cluster and global value chain research,” Brighton: Institute of Development Studies, 2000.
  19. [19] S. Broadberry, “Sources of industrial leadership: studies of seven industries,” Review of Industrial Organization, Vol.19, Issue 1, pp. 121-123, 2001.
  20. [20] R. Kaplinsky, M. Morris, and J. Readman, “The globalization of product markets and immiserizing growth: lessons from the south african furniture industry,” World Development, Vol.30, Issue 7, pp. 1159-1177, 2002.
  21. [21] L. Brandt, “Policy Perspectives from the Bottom Up: What Do Firm-Level Data Tell Us China Needs to Do?,” Policy Challenges in a Diverging Global Economy: Proc. from the 2015 Asia Economic Policy Conf., R. Glick and M. M. Spiegel (eds.), Federal Reserve Bank of San Francisco, San Francisco, CA, 2015.
  22. [22] M. Kalli and J. E. Griffin, “Time-varying sparsity in dynamic regression models,” J. of Econometrics, Vol.178, Issue 2, pp. 779-793, 2014.
  23. [23] S. Fruhwirth-Schnatter, “Markov chain Monte Carlo estimation of classical and dynamic switching and mixture models,” J. of the American Statistical Association, Vol.96, Issue 453, pp. 194-209, 2001.
  24. [24] Y. Chunmei, Y. Xiaodong, and C. Tao, “Electromachining Cloud Platform Based on Cloud Manufacturing,” Electromachining and Mould, Issue 2, p.3, 2016.
  25. [25] X. Chen, “A tale of two regions in chinarapid economic development and slow industrial upgrading in the pearl river and the yangtze river deltas,” Int. J. of Comparative Sociology, Vol.48, Issue 2, pp. 167-201, 2007.

*This site is desgined based on HTML5 and CSS3 for modern browsers, e.g. Chrome, Firefox, Safari, Edge, IE9,10,11, Opera.

Last updated on Dec. 15, 2017