决策与创新1111.docVIP

Chapter 1 THE PROBLEM AND ITS BACKGROUND Introduction In the 21st century, the world economy has changed from the material economy to knowledge-based economy. China has become the center of the worlds high energy-consuming industrial and manufacturing industries, but with the excessive consumption of resources and the rapid growth of energy demand they have done more harm than good. High input, high consumption and economic growth will inevitably lead to excessive depletion of the natural and a variety of non-renewable resources which will affect economic development of Chinese enterprises. China has greatly improved after 30 years of development, but compared with developed countries there are still significant gaps. The reason is that by the shackles of internal and external institutional environment there is still lack of lasting power and capacity of innovation. Chinas reform has not been completed. There is still large room for institutional innovation. Institutional innovation and institutional change is still considered an important driving force of Chinas economic growth. China is also facing the problem of a transition that can’t always rely on the price and cost competition. Chinese enterprises must compete on value and shall be innovative. A lot of innovations are on products which maybe a series of innovative processes, forms of organization and finance. On the enterprise management level, it is the management of enterprise system innovation on concept ideas, institutional mechanisms, methods and means are necessary. Innovation is forced out of the fierce competition, aimed at solving practical problems. Chinese enterprises must turn to the value of competition through institutional innovations. Continuous innovation is the core competence of the dynamic capability formation process. It is a concentrated expression of institutional innovation in the enterprise decision-making process. The system of innovation refers to peoples exist