Analysis on the Function Mechanism of Technological Innovation Promoting Industrial Structure Upgrad.docVIP

Analysis on the Function Mechanism of Technological Innovation Promoting Industrial Structure Upgrad 　　Abstract. Industrial development is the important support for the development of a country’s economy, and technological innovation is the main factor of industrial development. Technological innovation can improve the productivity of production factors and reduce the long-run average cost of an enterprise to make the enterprise realize benefit on a scale; develop new products, use new technology and occupy the market in advance to make the enterprise develop rapidly and obtain huge profits. We should have a correct understanding of the status of technological innovation and its function mechanism on industrial structure upgrading, give full play to enterprises’ status and function as the main body of technological innovation, increase support of innovation from the government and research institutions, accelerate upgrading of China’s industrial structure and step into the well-off society as early as possible. 　　Key words: Technological Innovation, Industrial Structure Upgrading, Function Mechanism 　　1. Introduction 　　Industrial development is an important way for economic development and technological innovation is the main measure of industrial structure upgrading. For China’s industrial structure upgrading and economic development in the future, it is very important what form should be adopted for our technological innovation, what stage our technological innovation is at, and what policy guidance should be adopted by the government. A country’s industrial structure is always going from irrational to rational state. If industrial structure is irrational, it will influence the country’s national economy and its economic growth will be slow, thus the country will be in a backward phase. And slow growth of national economy will hinder industrial structure upgrading and vicious cycle can even appear; If we can make full use of economic resources, effectively