Tuesday, October 04, 2011

Research on Equipment Manufacturing Industry China: IPR Significant Impact on Transition From Imitative To Independent Innovation

The Journal of Technology Management in China (Vol. 6 No. 3, 2011, p 257-266) has an interesting article  A study of the evolutionary path of technological innovation modes in the equipment manufacturing
industry of China written by Yuan Yi-jun and Lv Cui-jie (Department of Economics, Dalian University of Technology). 

Yuan and Lv use evolutionary game theory to research what hinders the transition from imitative innovation to independent innovation in the strategically important equipment manufacturing industry. 

The authors come to the conclusion that the obstacle factors from imitative to independent innovation are internal and external mutation conditions:

  • Internal: path dependence and lack of benefit incentives;
  • External: lack of fiscal support and lack of intellectual property protection

Yuan and Lv: "The results show that the pursuit of the benefit (innovation return or above-average profits), as an internal mutation condition, is the most fundamental motivation for independent innovation, while policy incentives, as the external mutation conditions, have a significant impact on the evolutionary transition from imitative innovation to independent innovation in equipment manufacturing enterprises."

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