The significance of technological innovation to the economy

The significance of innovation on economic development

Technological innovation is currently a major trend in international economic development, but also a country's competitiveness in the international economic market. Experienced the rapid development of the economy after the reform and opening up, China's economic growth rate is now continuing to fall, China's economy into recession, how to smooth over the recession and enter the rebound stage as soon as possible is a problem that must be solved. Technological innovation as the main source and driving force of China's current economic development, is the key to achieve sustainable economic development.

I. The significance of technological innovation for China's economic development

Technological innovation, broadly speaking, refers to innovation based on the creation of new technologies or existing technological capabilities. And for China's economic development, technological innovation refers more to the process of enterprises or companies to adjust the company's current level of production and conditions, so as to establish a more efficient and faster production system and get more profits. Technological innovation for enterprises is not only embodied in the scientific research innovation, which contains more: technical design, management market and other aspects of the reform, such as: open up overseas markets, update production technology, change the management style and so on. With the progress of the times and the development of science and technology, the theory of technological innovation has gradually become the driving force and source of economic development, because the theory of technological innovation is not a technological theory, but a brand new economic theory, which not only focuses on the improvement of the creative ability and level of technology, but also pays more attention to the application of the technology in the market and management of daily economic activities. At present, the impact of technological innovation of economic development is becoming more and more prominent, China as a major economic power in the world, we should take technological innovation as an inexhaustible source of national economic development, focusing on the study of technological innovation, to realize the sustainable and stable growth of the country's economic development.

The impact of technological innovation on the economy

The impact of new technology on economic development is mainly realized through the efficiency of machines. Marx pointed out that the use of new machines in the enterprise is conducive to improve labor productivity, reduce production costs, enhance the competitiveness of enterprises, and then improve the rate of return of enterprises, people's desire to invest in the enterprise will be a good prospect for development. The emergence of new enterprises and new jobs creates more investment directions, better employment opportunities and better wages, which prompts the economy to enter a period of prosperity. In the West, technology is held by capitalists, so the emergence of machines will crowd out workers in the enterprise, reduce the voice of workers in labor relations, so that the benefits of technological innovation will be owned by capitalists. In our country, due to the role of state control, it is possible to protect the interests of workers to a greater extent, and the benefits of technological innovation will be enjoyed by both labor and capital ****. That is to say, enterprises to a certain extent will take the initiative to search for opportunities to obtain additional profits, under the guidance of entrepreneurs continue to carry out technological innovation, but only to adapt to the market choice of technology to break the original equilibrium for the enterprise to bring more profits, and promote economic development. However, this kind of prosperity will not last long, in the beginning of the boom period, each enterprise will choose their own optimal program, so there will be more and more latecomers through learning and imitation to make the scarcity of the product has been greatly diluted, weakening the competitive advantage of the enterprise. On the other hand, technological innovation is not only the emergence of new products, but also includes the innovation of manufacturing processes, process innovation improves the value chain of product production, and successfully reduces the cost of the product, which in turn lowers the price of the product. This is something we can see from the cell phone price changes on this point. The above two points *** with the reduction of product prices, the decline in prices to terminate the economic boom, at this time the role of the new technology on the driving force of economic development will be delayed, the economy into recession. In order to adapt to the new technology and the formation of the institutional system will no longer be adapted to the needs of economic development, this time not only can not promote economic development, and even hinder the development of the economy to make economic development into recession. The nature of the recession is a special, recognizable absorption process, a process of merging new things and making the system adapt to technological innovations, a way to explore to reach a new state of stasis, through the adjustment of the recession economy towards a new equilibrium, and in the equilibrium state of any enterprise can not get excess profits. At this time, if the economy wants to sustain economic development, we have to look for new technological innovations, break the original system, and gradually form a system that contains new technologies and adapts to new developments. Although technological innovation and economic development cycle is related, but the two are not synchronized, generally in the stage of economic depression, in order to find new economic growth, entrepreneurs will take the initiative to promote technological innovation, this period of technological innovation into a jet-like appearance. And in the economic boom period, entrepreneurs focus on the formation of the corresponding institutional system, so more technological innovation activities. So the economic development is in a spiral cycle upward, constantly upgrading the level of the system, if the institutional system does not get the corresponding upgrade, the impact of the boom effect is meaningless.

Three, the current constraints on technological innovation in China

(a) the enterprise development mode is difficult to change although many enterprises gradually put more funds for scientific and technological innovation to the stage of technological research and development, but the current level of enterprise scientific research and technology is not enough, there is not enough innovation ability to complete technological innovation in a limited period of time. At this time, under the limitation of market and other factors, enterprise managers gradually give up the investment in technological innovation when they see that the effect of scientific research and innovation is not obvious or does not reach the expected goal. Reform and opening up for more than 30 years, China's rapid economic development, but this is a huge material and labor consumption as the price, in the early stage of economic development, physical and tangible capital accumulation as the economic development is an important source of China's enterprises in the short term to achieve the accumulation of capital. However, with the gradual saturation of the market, the role played by human capital and technology level in economic development is becoming more and more important, enterprises in order to achieve sustainable development, it is necessary to technological innovation as the source and driving force for the future development of the enterprise, change the traditional business philosophy, and committed to the research on technological innovation, so as to play a contributing role in China's economic development.

(ii) the lack of attention of enterprises to technological innovation at present China's slow development of technological innovation, not only the slow progress of innovation, but also the quality is not high, which led to the country's economic development fell into the high input, low output, high consumption, low efficiency of the nausea in the cycle. This is largely due to the current technological innovation rewards, incentives system in China has not yet been perfected, technological innovation development and market operations are seriously disconnected, thus leading to the current situation. China's technological innovation is currently facing great difficulties, although under the call of the state, enterprises and companies on technological innovation investment continues to increase, but in the role played by the enterprise is minimal. China's enterprises are currently investing in scientific research is mainly divided into: basic research, experimental development of products, strategic high-tech research in these three aspects, data show that most of China's enterprises' scientific research investment intensity is extremely low, at present, as of 2016, China's research and experimental development expenditure of 1,567.7 billion yuan, of which basic research accounted for 5.25%, applied research accounted for 10.27%, and the development of research accounted for 84.47%, which indicates that the investment in basic research is seriously insufficient for the core technology capability of the industry, and the lack of destructive innovation to break the existing equilibrium. As a result, it is difficult for all enterprises in China to master the core technology of scientific and technological innovation, and the acceptance of external technology is very poor, resulting in the road of technological innovation is blocked. On the other hand, from the point of view of the number of patents, the number of patent applications accepted in 2016 was 3,464,800, of which the number of invention patent applications accepted was 1,338,503, and most of the patents were design patents and other types of patents that could not form technological innovation.

(C) China's economic growth rate has gradually slowed down since the reform and opening up, China's gross domestic product (GDP) has always been on an upward trend, from 458.76 billion yuan in 1980 to 743,585.05 billion yuan in 2016, basically maintaining the upward trend, but the growth rate of the GDP has been obviously fluctuating, and the growth rate of the GDP has reached a peak in about 2007,. In fact, that time was during the economic crisis, and from 2007 onwards the GDP basically showed a downward trend, and in 2016 it was as low as 6.7%, which was basically the same as that in 1980, indicating that China's economic growth rate has gradually slowed down. And China's economic development is mostly driven by the secondary industry, the use of China's large number of cheap labor to attract foreign investors to open factories in China, increase employment opportunities, improve wages and salaries, in order to promote China's economic growth. However, there are a series of problems in the development of secondary industry. Firstly, China's secondary industry relies on the demographic dividend, and as the demographic dividend declines, the contribution rate of the secondary industry is also decreasing. Secondly, China's secondary industry is mostly based on low-level manufacturing industry, with low value-added industry and overcapacity. Finally, China's secondary industry is too dependent on exports, nearly 90% of the output of China's secondary industry, especially the manufacturing industry, is used for exports, and the purchasing power of foreign countries declined after the economic crisis in 2007, and by 2016 China's exports had fallen by nearly 8 percentage points compared with 2015.The contribution rate of the secondary industry to the gross national product was 50.1% in 2007, and by 2016 the contribution rate had declined to 37.8%, in contrast, the contribution rate of the tertiary industry to the GNP has increased from 47.3% to 57.5%. That is to say, it shows that the pulling effect of the secondary industry on economic development is gradually decreasing. Can be seen by relying on China's large number of cheap labor to attract investment to promote the development of the secondary industry has been gradually weakened to information technology as the driving technology of the fifth round of the economic cycle has entered into a period of recession, with the corresponding institutional system is about to reach the end of the line, the need to look for new technological innovations to promote the sustained development of the economy.

Four, improve China's technological innovation capacity of the method

(a) improve the innovation system innovation system is a country to enhance the level of innovation, the development of effective innovation mechanism and promote the development of enterprises and socio-economic wind vane. Only the country to improve the corresponding innovation system, arrange the corresponding system, actively coordinate the problems and disputes between the government and enterprises, formulate relevant policies to mediate the market problems, and constantly improve and develop the innovation system, in order to better promote the level of China's technological innovation capacity and sustainable economic development, in constant practice, out of a road of technological innovation belongs to their own.

(2) the state to improve the legal system of intellectual property protection of technological innovation can not leave the state of intellectual property protection, and the legal system of intellectual property protection is more encouragement of technological innovation. At present, China's scientific and technological innovation capacity is at a low level, so a technological innovation often need to invest a lot of human, material and financial resources, and if there is no intellectual property rights legal protection, these resources are often unable to recover the investment, not to mention the use of technological innovation to obtain income, so the cycle, technological innovation will be difficult to achieve results. The state needs to improve the current legal system of intellectual property rights, these legal systems are the basis and guarantee of technological innovation, because technological innovation is an intangible scientific achievements, only through the production of products can be shown, and its specificity determines the attribution of such property judgment on technological innovation, need to rely on the intellectual property rights of the law, can be realized. Only the state has perfected the corresponding law, so that the results of technological innovation to have protection, enterprises and researchers can devote themselves to scientific and technological innovation, and promote the enterprise and the national economic **** with the development.

(C) enterprises focus on innovation ability, improve the innovation incentive system in China's economic development type of continuous transformation at the same time, the enterprise's attitude towards technological innovation is still unclear, still not technological innovation as the source of sustainable development of the enterprise, the lack of innovation motivation, the technological innovation did not pay attention to. If enterprises want to improve the technological innovation ability, they must establish technological innovation as the main body of the enterprise, carry out a series of property right system reforms according to the modern enterprise system, establish the autonomy of the enterprise's operation, obtain the enterprise's ability of self-transformation and development in technological innovation, and continuously obtain the profit in technological innovation, and the results of technological innovation can be the driving force of the company's sustainable development. In order to realize these purposes, the enterprise must increase the investment in technological innovation, strengthen the enterprise's innovation ability, develop a series of technological innovation system, and improve the corresponding technological innovation reward system.

In short, China wants to maintain economic development, we must start from technological innovation, looking for new economic growth points. Make full use of the logical relationship between technological innovation and economic development, technology-driven economy, to help China's economy smoothly through the "new normal".