Industrialized Innovation： The Connection of Science ＆ Technology Innovation with Industrial Innovation

Abstract In light of the relationship and the current disconnection between science ＆ technology （S＆T） innovation and industrial innovation in China, it is necessary to put forward and emphasize the concept of industrialized innovation. Industrialized innovation is the bridge and intermediation between S＆T innovation and industrial innovation, which is not only a concept, but also a mechanism and combination force. There are two ways to achieve industrialized innovation： through industry-university-research coordination and through technology entrepreneurship. The meaning of industry-university-research coordination is not about coordination among industry, university and research sectors in an institutional sense; rather it is about the coordination of the functions of cultivation and development in new industries, new technologies, and new talents of industrialized innovation. The incentive mechanism for industrialized innovation should motivate not only innovation but also coordination. Technology entrepreneurship is the industrialization of new technology through business start-ups, which occurs beyond the stage of incubation and development of new technology. The capital of technology entrepreneurship is the set consisting of knowledge capital manifested through technological innovation, human capital manifested through entrepreneurs, and physical capital in the form of venture capital. While physical capital is indispensable, knowledge capital and human capital play the decisive role in technology entrepreneurship. The industrialization of technological innovation involves two requirements： one is to enable the new technology industry to achieve a large scale rapidly, and the other is to fully realize the potential value of the new technology. Both requirements are reliant on effective innovation in business models.

The effect of domestic and foreign trade coordination on technological innovation： complements or substitutes？

Based on the theory of technology spillover in international trade, this paper discusses the technological innovation effect of trade by taking the influence of domestic trade into account. Under the constraint of the production possibility frontier, there is either complementarity or substitutability between domestic and foreign trade. It must be decided whether resources should be concentrated in one of the sectors （trade specialization） or instead allocated equally （trade equalization） between the two sectors. This paper firstly discusses how domestic trade and foreign trade work together to influence technological innovation, and how trade equalization and specialization affect different types of innovation. Using a provincial-level panel dataset from 2007 to 2015 in China, this paper constructs the indicators of domestic and foreign trade linkage and examines the impact of trade on innovation. The findings show that trade equalization mainly promotes incremental innovation, while trade specialization improves radical innovation. Thus, in the area of incremental innovation, attention should be paid to the equalized development of domestic and foreign trade, while in areas pursuing radical innovation, emphasis should be put on the specialization of the trade sector, avoiding equal allocation of resources to the two sectors.

Empirical Study of ＂Double Threshold＂ Modified Model on New Product Diffusion

The innovations actually diffuse among social network nowadays.Individual heterogeneity,interactions between individuals and network topology influence a lot.We established a "double threshold" modified model and took the number of neighbors,neighbors' adoption and the cost-benefit parameters as crucial influencing factors.The diffusion of DaLingTong(CDMA450)products in MeiShan city of SiChuan province during 2004 to 2007 has been used to verity the model on Matlab.The validation results fit the actual diffusion pattern of DaLingTong(CDMA450) products very well.The results indicate that there exists a "tipping point(threshold)" in the process of innovation diffusion.If the initial adoption quantity is larger than the tipping point,then the product will spread to a large portion of people,otherwise is will collapse to zero.The model can effectively predict the diffusion of new products,and can influence the diffusion process by changing the value of the parameters.