Regional Technical Innovation Suitability and Economic Growth in China

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1 Available olie at Procedia Egieerig 5 (20) Advaced i Cotrol Egieerig ad Iformatio Sciece Regioal Techical Iovatio Suitability ad Ecoomic Growth i Chia Da Zhu a, Demig Zeg a, Qig Zhou b,a* a School of Busiess Admiistratio, Hua Uiversity, Chagsha 40082, Chia b Istitute of Maagemet Decisio ad Iovatio, Hagzhou Diazi Uiversity, Hagzhou 3008, Chia Abstract This paper aims to use quatitative method to aalyse the suitability of regioal techical iovatio ad further compare its ifluece to regioal ecoomic growth i Chia. Based o literature review, the authors develop a evaluatio idex system cotaiig four aspects (amely, iovators, iovatio resources, ecoomic eviromet ad techical eviromet). By usig the Niche-Fitess Model, 3 Chiese provices regioal techical iovatio suitability is assessed ito a square matrix. Usig the public data, the regressio aalysis of techical iovatio suitability ad ecoomic growth of each provice is carried out ad correlatio is foud to exist betwee regioal techical iovatio suitability ad regioal ecoomic growth: The higher techical iovatio suitability, the bigger cotributio of techical iovatio to ecoomic growth. 20 Published by Elsevier Ltd. Selectio ad/or peer-review uder resposibility of [CEIS 20] Ope access uder CC BY-NC-ND licese. Keywords: regioal techical iovatio suitability; regioal ecoomic growth; Chia. Itroductio May curret results o iovatio performace measuremet are based o research to a sigle iovatio etity, such as to study the geeratio, developmet ad evolvemet of iovatio behavior from a firm perspective. However iovatio i practice is ot oly the result of a sigle iovatio etity, but is also ofte iflueced by the eviromet where the iovatio etity is i. Uder such circumstaces, iovatio complexity research challeges more ad more the traditioal iovatio * Correspodig author. Tel.: ; fax: address: zhuda@utwete.l Published by Elsevier Ltd. doi:0.06/j.proeg Ope access uder CC BY-NC-ND licese.

2 5344 Da Zhu et al. / Procedia Egieerig 5 (20) study[,2]. This paper uses quatitative method to evaluate regioal techical iovatio suitability, by takig ito cosideratio iovatio complexity factor. It further aalyzes the ifluece of regioal techical iovatio suitability to regioal ecoomic growth i Chia. Curret research o iovatio complexity system cosists of two groups. Some use quatitative method to evaluate the iovatio system, such as Gua ad Liu applied Theil Etropy priciple to assess the iovatio performace of regioal iovatio system i Chia, ad Newma et al. adopted the research method of complexity sciece to aalyze the social etwork research ad collaboratio[3]. Others work qualitatively o the iovatio system, such as Wu did research o the factors ad effects of atioal iovatio system, ad Re described the sources of complexity of iovatio system[4,5]. Suitability refers to the degree of a trait or fuctio, or a group of variables cocerig the mutual adaptability of all the factors i a evaluatio system with some sythetic ad dyamic characteristics. The applicatio of suitability is coducive to the gradual exteralizatio ad fuzzy quatificatio of each process i a evaluatio system, ad ca provide a effective aalysis method to precisely orietate the coordiatio ad couplig amog differet factors. I practical applicatio, may researchers ad scholars have proposed such cocepts as Eco-suitability, Lad Suitability ad Eviromet Suitability alog with correspodig evaluatio methods, which have eriched ad developed the cotets of suitability research. Such as, Bydekerke et al. aalyzed Lad suitability assessmet ad assessed the suitability of lad to grow cherimoya i the provice of Loja[6]. Hirzel et al. estimated habitat-suitability ad compared two habitat-suitability assessig methods, the Ecological Niche Factor Aalysis (ENFA) ad the Geeralised Liear Model (GLM)[7]. Emmauel estimated the evirometal suitability of five of the most commoly used wall materials i Sri Laka ad a Evirometal Suitability Idex was developed based o three parameters: embodied eergy, lifecycle costs ad re-usability[8]. Joa Marull et al. preseted the Lad Suitability Idex, a trasparet, modular hierarchical system of cartographic idices aimed at deliverig Strategic Evirometal Assessmet of developmetal lad uses for regioal plaig[9]. After itegratig ad absorbig the research fidigs above, the paper assumes that regioal techical iovatio suitability refers to the measuremet of the coordiated developmet relatio betwee regioal techical iovatio ad regioal ecoomy, techology, ad other eviromet factors, ad represets the potetial ad practical level of regioal ecoomy, techology as well as other eviromet factors i meetig the requiremets of regioal techical iovatio developmet. 2. The Costructio of the Idex System of Regioal Techical Iovatio Suitability Evaluatio The system suitability is a set of variable for measurig the mutual adaptatio of the elemets i the system, which reflects the degree of syergy amog the elemets. I the process of the practical applicatio ad theoretical research, the ecological suitability, urba suitability, evirometal suitability ad other related suitability research have eriched ad developed the suitability s cotet. Accordig to the characteristics of regioal techology iovatio, the paper cocludes that the regioal techology iovatio suitability measures the relatioship of coordiated developmet amog the techological iovatio, regioal ecoomic, social ad evirometal developmet, reflectig the potetial ad actual level of the regioal ecoomic ad social eviromet, ad promotig regioal techological iovatio. Based o the literatures about the itesive properties of the regioal techological iovatio suitability, we costructed the idex system for regioal techical iovatio suitability evaluatio cosiderig the regioal ecoomic ad techical perspective of the macro eviromet. The measuremet idicators of techological iovatio are divided ito four elemets: iovators, iovatio resources, ecoomic eviromet ad techical eviromet. I order to describe the measuremet idicators i empirical study, this paper has selected some practical idicators to represet the measuremet idicators. Ad the practical idicators are relative

3 Da Zhu et al. / Procedia Egieerig 5 (20) idicators, which cosider the relative distributio of iovators ad iovatio resources, such as the practical idicators of eterprise is ratio of regioal large-scale idustrial eterprises to the total i Chia takig ito accout the relative distributio of large-scale idustrial eterprises, which have a direct impact to the relative level of regioal iovative activities. Of course, the practical idicators may ot be able to fully reflect all the iformatio of the measuremet idicators, but, to some extet, they ca tell some basic iformatio of the measuremet idicators of the regioal techical iovatio suitability. The characteristics of iche fitess model accord well with the research goal of techical iovatio suitability. Therefore, the paper has chose iche fitess model for the evaluatio of regioal techical iovatio suitability. We assume there are some regioal techical iovatios, amouted to m, ad y (i=,2,,m;j=,2,,) represets the observatioal value of ith techical iovatio regioal o the jth ecological factor. Ad we ca get the data by the followig o-dimesioal process: y =y () I equatio (), y max represets the max value of y. After o-dimesioalizig, y represets techical iovatio reality iche site. Ad we assume y is the optimal iche site: y =max(y ) (2) The computig model of regioal techical iovatio suitability value ca be desiged as: ' ' mi{ y } + ε max{ y } Pi = γ j ' ' y + ε max{ y y } j= (3) I equatio (3), P i represets the ith regioal techical iovatio suitability value, which is greater, the higher the fitess of the regioal eco-techological iovatio, the better for iovative activities of ew regioal group. The symbol of r i represets the weight of the ecological factor jth, which reflects the degree of iche factor impactig regioal techical iovatio suitability. The parameters of ε ( 0 ε ) are model parameters, whose value ca be estimated by defiig P i =0.5. ϕ = y i =,2,..., m ; j =,2,..., (4) ϕmax = max{ ϕ } (5) ϕmi = mi{ ϕ } (6) m ϕ = ϕ (7) m i= j= ϕmi + εϕ ϕ + εϕ max max = 0. 5 The value of ε ca be calculated with formula (4-8). Assumig Y t =(y t,y t2,,y tm ) is the reality iche site of regioal techical iovatio, Y a =(y a,y a2,,y am ) is the optimal iche site, the evolutioary mometum of regioal techical iovatio ca be calculated with formula (9), which reflects the developmet opportuity of the regioal techical iovatio system. /y max (8)

4 5346 Da Zhu et al. / Procedia Egieerig 5 (20) y ti ai t= Qi =, i =,2,..., m (9) 3. The empirical aalyses of the regioal techical iovatio suitability i Chia We ve selected 3 provices as the objects of empirical aalysis. There are maily two sources of data i this study. The first oe icludes statistical yearbooks, such as Chia Statistical Yearbook (2008), Chia Statistical Yearbook o Sciece ad Techology (2007), etc. The secod source icludes relevat reports from the official website of Natioal Bureau of Statistics of Chia. The idicators of high-tech idustrializatio ad eviromet of scietific ad techological advacemet origiate from the official statistic reports o the website of Natioal Bureau of Statistics; the ratio of R&D istitutios to the total i Chia origiates from Chia Statistical Yearbook (2007); other data origiate from Chia Statistical Yearbook (2008). Firstly, we stadardize the primary data of the 3 provices based o formula (). We assumed r =r 2 = =r j =/m. Usig the value i the Table 2, we ca calculate with formula (2)-(8), ad get ϕ max=0.9999, ϕ mi =0.000, ad ε =0.77. Followig the formula (3) ad (9), we get P i = γ j j= y + Q i = 5 t= y ti 5 ai, i =,2,...,3, (0) Ad we ca get the values of regioal techical iovatio suitability ad evolvemet mometum with formula (0). Provices with values of suitability over 0.7 fall ito the first phalax; those with values betwee 0.5 ad 0.7 fall ito the secod phalax; those with values betwee 0.45 ad 0.5 fall ito the third phalax; ad those with values smaller tha 0.45fall ito the fourth phalax. Based o such a classificatio, we ca get four levels of regioal techical iovatio suitability i Chia from the highest to the lowest. Beig ad Shaghai fall ito the first phalax with the highest techical iovatio suitability; Tiaji, Guagdog, Jiagsu, Zhejiag, Shadog ad Liaoig fall ito the secod phalax with relatively high techical iovatio suitability; Fujia, Hubei, Shaxi, Ier Mogolia, Sichua, Hebei, Jili, Hea, Chogqig, Hua, Heilogjiag, Shaxi fall ito the third phalax with relatively low techical iovatio suitability; ad other provices fall ito the fourth phalax with the lowest techical iovatio suitability. I terms of the developmet tred of each provice idifferet regios, the values of regioal techical iovatio suitability of Beig ad Shaghai is the biggest, which are followed by those of Tiaji, Guagdog, Jiagsu, Zhejiag, Shadog, Liaoig. Ahui, Xijiag, Jiagxi, etc. have smaller values. This idicates that Beig ad Shaghai are more suitable for iovators to carry out iovatio activities compared to other regios, while the weak suitability i Ahui, Xijiag, Jiagxi ad other provices i the wester ad cetral regios i Chia suggests a greater potetial for their developmet ad evolvemet. This coclusio has bee clearly proved i examiig the value of evolvemet mometum of regioal techical iovatio suitability, i which Ahui, Xijiag, Jiagxi ad other provices i wester ad cetral regios have bigger value of evolvemet mometum. The Solow Swa growth model is a term used to sum up the cotributios of various authors to a model of logru ecoomic growth withi the framework of eoclassical ecoomics. I Solow's model, ew capital is more valuable tha old (vitage) capital because - sice capital is produced based o kow techology, ad techology improves with time - ew capital will be more productive tha old capital. Both Paul

5 Da Zhu et al. / Procedia Egieerig 5 (20) Romer ad Robert Lucas, Jr. subsequetly developed alteratives to Solow's eo-classical growth model. Today, ecoomists use Solow's sources-of-growth accoutig to estimate the separate effects o ecoomic growth of techological chage, capital, ad labor. Therefore, we use the Solow Swa growth model to evaluate the ifluece of techical developmet to ecoomic growth, ad assume the productio fuctio of Gross Regioal Product as follow: R=Ae µt L α K β () Where R represets the total productio i a regioal, A represets a factor of total productivity, T is techical iovatio suitability, L is ratio of techical staff amout to the urba eterprises, K is aual total fixed assets ivestmet per capita.µ α ad β separately represet techical-output coefficiet, labor force-output coefficiet ad capital-output coefficiet, α+β=. We ca get the value of α ad β with Cobb Douglas fuctio. Defied G Q = Δ Q/( Δ T*Q),G L = Δ L/( Δ T*Q), G K = Δ K/( Δ T*Q),we ca get G A =G Q -αg L -βg K usig Complemetary method. E=G Q /G A represets the relative cotributio value of techical developmet to ecoomic growth. I the calculatio process, the relative value is stadardized by the formula (). This study rus with the software SPSS, after stadard umerical regressio aalysis, the parameter values are A=0.423,µ=.0,α=0.698,β=0.302,the productio fuctio of the ecoomic growth ca be show as follow: R=0.423e.0T L K (2) We calculate the relative cotributio values of techical iovatio suitability o the ecoomic growth with formula (2), which are listed i Table. Table displays that uder the curret techical iovatio circumstace the techical iovatio suitability of Beig cotributes most to Beig s ecoomic growth, with a value of Other cities, with techical iovatio suitability cotributes more tha 0.5 to their ecoomic growth, are Liaoig, Jiagsu, Shaghai, etc. i total 2 provices ad muicipalities. This result fits i practice as for the positive applicatio of techical iovatio suitability to promote their ecoomic growth i these provices. O the other had, the techical iovatio suitability of Tibet, Haia, Qighai ad Nigxia has little cotributio to their ecoomic growth, due to the extesive mode of growth, so that techical iovatio plays a relatively small role i the ecoomic growth of these regios. Table. Relative cotributio value of techical iovatio suitability o the ecoomic growth Rak Provice Relative cotributio value Rak Provice Relative cotributio value Rak Provice Relative cotributio value Beig Tiaji Shaxi Liaoig Hebei Fujia Jiagsu Zhejiag Guagxi Shaghai Hubei Guizhou Hea Jili Xijiag Shadog Yua Heilogjiag Sichua Guagdog Gasu Shesi Jiagxi Nigxia Chogqig Ier Mogolia Qighai 0.228

6 5348 Da Zhu et al. / Procedia Egieerig 5 (20) Ahui Hua Haia Tibet Discussio ad coclusio Our aalysis to the developmet state of each provice i Chia demostrates that Beig ad Shaghai have the highest techical iovatio suitability, which meas that these two muicipalities are more propitious to techical iovatio activities of the iovatio etities. Provices like Ahui, Xijiag ad Jiagxi have relatively weaker techical iovatio suitability, thus more room for suitability developmet. This has bee proved by the rather large evolutioary mometum of regioal techical iovatio suitability of these provices. O the other had, the comparative aalysis to the ecoomic developmet level of each provice shows that more developed provices, such as Shaghai, Tiaji, Guagdog, Jiagsu ad Zhejiag, have relatively higher techical iovatio suitability values. Less developed provices like Xijiag, Nigxia, Guagxi, Qighai ad Yua get low values i techical iovatio suitability. This pheomeo illustrates that ecoomically developed regios have more motivatio ad capability to perfect ad cultivate regioal techical iovatio eviromet, ad the ehacemet of techical iovatio suitability is a process, which eeds time for the accumulatio ad eeds ecoomic developmet as a support. Our aalysis shows that regios with higher techical iovatio suitability, their techical iovatio cotribute more to their ecoomic growth. This does ot mea, o the atio-wide rakig, that high techical iovatio suitability provices have absolutely high techical iovatio cotributio. There exists betwee these two obvious correlatio ad also some differece. For the Chiese provices ad muicipalities may mea that ot oly the costructio of techical iovatio suitability is importat, but also takig measures, such as promotig techical iovatio achievemets ito productio, to ehace the role of techical iovatio to regioal ecoomic growth. Ackowledgemets The authors would like to thak NSFC, Chia, for fudig the project coded ( ). Refereces [] Katz J.S.. Idicators for complex iovatio systems. Research Policy, 2006,35, [2] Katz, J.S., Cothey, V.. Web Idicators for Complex Iovatio Systems. Research Evaluatio, 2006,4(2), [3] Gua, J., Liu,S.. Comparig regioal iovative capacities of PR Chia-based o data aalysis of the atioal patets. Iteratioal Joural of Techology Maagemet, 2005,32(3/4), [4] Su Y., Wu G.. The Defiitio ad research methods of Natioal iovatio system. Forum o Sciece ad Techology i Chia, 999,3, 6-8. [5] Re J., Gu P.. Research o the iovatio system based o the complexity theory. Studies I Sciece of Sciece, 2002,20(4), [6] Bydekerke L., Rast E.V., Vamechele L., ad Groeemas R..Lad suitability assessmet for cherimoya i souther Ecuador usig expert kowledge ad GIS. Agriculture, Ecosystems ad Eviromet, 998,69, [7] Hirzel A.H., Helfer V., Metral F.. Assessig habitat-suitability models with a virtual species. Ecological Modellig,200,45(2/3), -2.

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