Enterprise Group Innovation, Transformation, and Growth

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Features: Under the influence of Schumpeter's innovation theory, a large number of economists have conducted theoretical and empirical research on the relationship between market structure, firm size, and technological innovation. One of the key figures of neo-Schumpeterianism, the American economist Edwin Mansfield, used regression statistical analysis models to analyze the role of large firms in technological innovation based on a large amount of statistical data. The conclusions drawn were: ① Large firms account for a significant proportion of innovation and have a major impact; ② The proportion of innovation by large firms is correlated with their market share, but not strictly corresponding, rather depending on the industry conditions; ③ The role of small firms in innovation seems to be declining. The research results of two other American economists, Morton Kamien and Nancy Schwartz (1972, 1975, 1984), showed that there are three main factors that determine technological innovation: ① Degree of competition. Competition creates the necessity for innovation and determines its intensity. Through technological innovation, firms can achieve higher profits than their competitors. ② Firm size. The larger the firm size, the stronger its innovation capacity, and the larger the market it can open through innovation. This makes technological innovation by firms both necessary (triggered by market competition and demand) and possible (with strong innovation capabilities). ③ Degree of monopoly. The higher the degree of monopoly that one or some firms have over certain markets, the stronger their market control, and the more difficult it is for innovation to be imitated, thus the longer the same innovation remains effective. Townshend (H. Townsend) and others believe that innovation is high-risk and requires high monopoly profits as R