Industrial innovation of industrial innovation of industrial innovation of industrial innovation of industrial innovation of industrial innovation of industrial innovation of industrial innovation of

Industrial innovation of industrial innovation of industrial innovation of industrial innovation of industrial innovation of industrial innovation of industrial innovation of industrial innovation of industrial innovation of industrial innovation of industrial innovation

Industrial innovation is the creative destruction of the old industrial structure. Schumpeter, the founder of innovation theory, compared innovation to biological genetic mutation, "which is analogous to the biological theory of mutation, that is, the 'industrial mutation' that constantly revolutionizes the economic structure from within the system and constantly destroys the old and creates a new structure constitutes a ' creative process of destruction."' According to Schumpeter's theory, we can regard industrial innovation as the process of industrial mutation. Then where does the power of industrial mutation come from? The industrial structure of any era is a comprehensive reflection of certain demand structure, technology level and resource structure, and evolves under the influence of changes in these factors. Therefore, the power of industrial mutation also comes from the power system of industrial evolution, and it is the interaction of these forces that induces and promotes industrial innovation.

1. Demand is the idea source and power source of industrial innovation

An industry is bound to provide one kind of product or service for the society. It is because these products and services meet people's consumption habits, meet people's consumption demand, these industries can grow and expand. It is also because people's demand for certain products or services continue to decline, which leads to the shrinkage and decline of these industries. Demand is the basic condition that determines the growth of industry is no objection, so we can also draw the same conclusion: demand is the fundamental driving force of industrial innovation, the birth of any new industry or the transformation of the old industry is the product of demand. Because:

First, customer orientation is the initiator of passive innovation in the enterprise Professor Porter believes that complex, discerning users are an important factor in improving product quality, performance and service. He cited a large number of countries by the user to guide the enterprise passive innovation examples, such as in Japan, consumers regard the video recorder as a status symbol, consumers have a wealth of knowledge about the video recorder, consumers are keen to chase the most fashionable style, the best quality products. In this way, it promotes the continuous innovation of manufacturers and maintains the unique competitiveness of the Japanese VCR industry in the world. China's Taiwan scholars Chen Zhengnan and Tan Dachun through the cross-strait industrial competitiveness of the comparative study also concluded that: the customer's degree of picky and the degree of importance of product quality is an important factor in industrial competitiveness, Taiwan has a picky and demand for complex and sophisticated customers is Taiwan's advantageous conditions.

With the wide application of information technology, the exchange of information between people has become more and more convenient, and the customization of production and the networkization of sales have provided a richer source of ideas for enterprises to innovate in the industry. Moreover, the customers are more likely to be the designers and developers of the products, and the self-participation of the customers will vigorously promote the passive innovation, and the pull of the demand on the innovation of the industry has become more powerful.

Secondly, the potential needs of customers are the guiding light of active innovation. On the surface, active innovation seems to have little relationship with demand, and sometimes it is even said that innovation creates the market and creates the demand. But fundamentally analyze, active innovation is still guided and determined by demand, the decisive role is still demand, that is to say, the driving force of industrial active innovation is still demand, but this demand may be the potential needs of consumers or future demand. Industrial insight or foresight is the starting point and foundation of industrial innovation. Industry insight is the foresight of changes in demand and technological development. According to Hamel and Prahalad (1998, PP.82), the ability to anticipate industrial development is based on a deep insight into the development trends of technology, demographics, regulations and lifestyles. The future is not an extension of the past; the future is the present; and the future needs of people are the present goals of industrial pioneers. For example, Apple Computer wanted to make computers available to children in the 1970s. At that time, computers were still hidden in specially constructed rooms in the company's office building. It is this kind of whimsical industrial foresight that Apple launched the mass market PC in 77, four years earlier than IBM's PC, and Apple succeeded in becoming the innovator and leader of the Pc industry. And if Apple's ability to foresee the Pc industry is divorced from consumer demand, there must be no myth of Apple's successful innovation. Industrial foresight is a long-term, cumulative process of perceiving, thinking, and feeling about market demand. The purpose of cultivating industrial foresight is to recognize the future needs of customers and to determine the direction of industrial innovation.

Vo1 15 No.2 Apr.2003 Of course, when we say that demand is the source of ideas and direct impetus for industrial innovation, we should also initially consider various possibilities to meet the demand, such as resource conditions and technological possibilities, because human needs are infinite, and it is not possible for any enterprise to satisfy the needs of its customers in a comprehensive manner. Industrial innovation can also only satisfy the demand in a specific period of time or better than before.

2. Technological innovation is the engine of industrial innovation

In general, scientific and technological breakthroughs are the first external source of the idea of industrial innovation. Scientific and technological breakthroughs do not only refer to scientific and technological inventions and discoveries, but also extend the connotation of scientific research to the introduction of scientific research results that can be used in production. The advanced form of scientific and technological breakthrough and technological innovation is technological revolution, and the advanced form of industrial innovation is industrial revolution. The industrial life cycle is similar to the technological life cycle. The Dutch economist van Zwijn pointed out in his book Economic Long Wave and Innovation that the product life cycle exists in the process of technological development, and technological innovation, diffusion and turnover are all reflected in the development of industrial change. Take the fuel industry as an example, the fuel industry has experienced a major shift from wood a coal a natural gas, oil a nuclear fission fuel a solar energy, etc., and each of these shifts is a product of technological innovation.

Facts show that the lower level of technology in the maturity stage of the life cycle, the new technology produced in the latter period of rapid growth, replacing the former technology, become the core technology of the industry, the level of industrial technology in the alternation of traditional and new technologies continue to rise to a new level, through a number of industrial innovation industry is also to the advanced and knowledge-based development. It is a well-known fact that technological innovation directly promotes industrial change and industrial evolution.

Of course, technological innovation is not important in itself. And some technologies are difficult to diffuse or industrialize. However, if the technological innovation significantly affects the competitive advantage of the enterprise or the industrial structure, or if it can replace the original technology, then it has a greater impact on industrial innovation and will induce industrial innovation.

3. Entrepreneurial innovation spirit is the inexhaustible power of industrial innovation

Schumpeter in the "theory of economic development", "capitalism, socialism and democracy" unique entrepreneurs as "innovators", emphasizing that with the daily work and pure management is different from the "innovation" is the real entrepreneur. Innovation" is the real function of entrepreneurs and the quality they must have. According to Schumpeter's innovation model, not all managers can be qualified to be called entrepreneurs, and only managers who make creative reflections on the economic environment in order to promote production growth can be called entrepreneurs. Schumpeter emphasized and valued the unique role of "entrepreneurs" in the process of capitalist economic development, and regarded "entrepreneurs" as the "soul" of capitalism, the "soul" of "innovation", "innovation", "innovation", "innovation" and "innovation". "Innovation", "new combination" of production factors and the main organizer and promoter of economic development. Industrial innovation is the highest level of entrepreneurial innovation, and all entrepreneurs who have had a significant impact on history are pioneers of brand-new industries. The birth of most new industries is essentially the work of a few innovative entrepreneurs. In their book Competing for the Great Future, Hamel and Prahalad state bluntly, "Anyone who has enjoyed the material achievements of the American middle-class lifestyle has to admit that he or she has been greatly blessed by these industrial pioneers." The Henry Ford Museum in Greenfield Village in Dearborn, Michigan, chronicles the great pioneers of industrial innovation in American history, such as Deere, Eastman, Charleston, Bell, Edison, Watson, the Wright Brothers, and Ford.

Examined from the entrepreneurial growth mode, entrepreneurs have experienced four stages: owner-type entrepreneurs, inventor-type entrepreneurs, manager-type entrepreneurs, and expert-type entrepreneurs. Different types of entrepreneurs have the *** same characteristics is the ability of industrial innovation. Industrial revolution is essentially an entrepreneurial revolution, and entrepreneurs are the soul of industrial revolution. Entrepreneurs to create profits as the goal, and profits are the return of industrial innovation. Entrepreneur's innovation spirit is the inexhaustible power of industrial innovation. Schumpeter's five cases of innovation can at least be said to be the basic connotation of entrepreneurial industrial innovation.

4. Competitive pressures on firms within an industry also turn into a driving force for industrial innovation

Every firm is a collection of activities used to design, produce, market, deliver, and play an ancillary role in the product (Porter, 1985, PP.36). Different firms compete at various points in the value chain of an industry. The value chain of the same industry is essentially the same. In a competitive market, every firm can survive only if it has an advantage that distinguishes it from other firms. The basic source of a firm's competitive advantage is through innovation in one or more links of the basic value chain (basic and supporting activities). It is now recognized that competition is the soul of a market economy and an inexhaustible driving force for economic development. It can be said that without competition there would be no economic success today. Although competition has its disadvantages, it is by no means as Marshall said: "The term 'competition' is already full of sinful connotations and contains a certain egotism and indifference to the welfare of others." On the contrary, monopoly is the enemy of the market economy and the root of all evil. This is precisely the reason why monopoly is generally prohibited in Western countries. For example, one of the first propositions of the U.S. antitrust law is that too much industrial concentration produces explicit or implicit **** schemes. A review of the history of modern economic development leads to the exact opposite of Marshall's conclusion: namely, that competition is a fundamental feature of industrial life and a direct driving force for industrial innovation. Competition among firms within an industry drives industrial innovation in the following ways:

First, firms invest in innovation to develop new products or improve the performance of existing products. If there is no competitive threat to the enterprise, there is no incentive to invest in innovation. Just as the R&D investment ratios of some of China's natural monopoly industries, such as telecommunications, post and telecommunications, electricity, water, etc., are the lowest of all industrial sectors, there can be no innovation investment without competition. The generalized innovation investment of the enterprises in the industry will promote the industrial technological progress or accelerate the diffusion of new technology in the industry, or develop new products, which promotes the industrial innovation in many ways.

Secondly, the competitive pressure of enterprises promotes industrial segmentation and industrial reconstruction. Due to the existence of competitive pressure, enterprises in order to obtain survival space, on the one hand, constantly increase the degree of product differentiation or develop new alternative products; on the other hand, they constantly break through the boundaries of the original industry, to the extension of related industries, especially when the industry is in recession. The result of these behaviors is to produce industrial refinement, alternative industries or new industries.

In addition, changes in government policy system and factor supply are the driving force of industrial innovation. The government's strong support for emerging industries, mainly high-tech industries, has greatly facilitated the pace of industrial innovation. Changes in the degree of scarcity or relative price of industrial supply factors such as raw materials, energy and human resources will also become the driving force of industrial innovation. For example, two global oil crises occurred in the 1970s, and the price of crude oil rose by about 14 times in less than 10 years. The oil crises not only triggered innovation in the energy industry itself (new energy sources were constantly being developed), but also led the global economy into an era of energy-efficient and low-energy-consuming industries. It is because of the oil crisis) in the hit, has contributed to Japan's leading industries from the original high energy consumption of heavy chemical industry, raw materials industry (iron and steel, non-ferrous metal smelting, etc.), machinery industry and other industries to the low energy consumption of assembly and processing industry (such as the electronics industry, the automobile industry, mechatronics industry, etc.) of the transformation. The direct impetus for Japan's industrial transformation is the pressure of the energy crisis. Therefore, changes in industrial supply factors (mainly rising scarcity) and fortuitous events may also become the driving force of industrial innovation. Such as mankind has just entered the 21st century, the global price of crude oil shook straight up, the high energy consumption industry (such as heavy chemical industry, automobile industry, fertilizer and pesticide industry, etc.) constitutes a fatal blow, which will surely become the direct driving force of industrial innovation. Another example is that with the increase of global water scarcity, the increase of water value is inevitable, which provides a wide world for industrial innovation. The various forces of industrial innovation are interconnected and mutually reinforcing, and they may form interactive benign feedback to promote industrial innovation.