The concept and connotation of innovative modernization

Mondo Three rural Updated on 2024-01-30

The 20th National Congress of the Communist Party of China (CPC) put forward Chinese-style modernization for the first time, and clarified the rich connotation, essential requirements and important characteristics of Chinese-style modernization. The key to China's modernization is the modernization of science and technology. On April 21, 2023, the ** Committee for Comprehensively Deepening Reform deliberated and passed the "Opinions on Strengthening the Main Position of Enterprises in Scientific and Technological Innovation", which changed the past emphasis on enterprises as the main body of innovation to enterprises as the main body of scientific and technological innovation, and further proposed the core role of enterprises in the scientific and technological innovation system. Along this line of thought, we take the overlapping part of scientific and technological modernization and modern industrial system as the research object, and put forward a new concept of innovation modernization, hoping to put forward new thinking and inspiration for the construction of an innovation system in which enterprises are the main body of scientific and technological innovation.

1. Innovation modernization is the result of the evolution of innovation theory.

Adam Smith, the originator of Western economics, pointed out the role of "invention" in "The Wealth of Nations" on economic growth. Marx, the leader of the international communist movement and the spiritual leader of the proletariat all over the world, was also a pioneer of innovative theories, and pointed out in Capital that the development of productive forces can be promoted through changes in production techniques and methods.

J. Schumpeter, professor of economics at Harvard Universitya.Schumpeter was the true founder of innovation theory in the early 20th century. In 1912, Schumpeter first explicitly proposed the concept of "innovation" in his famous work The Theory of Economic Development. In 1939, Schumpeter elaborated in depth his innovative concepts and theories. In Schumpeter's view, "innovation" is the establishment of a new production function that is different from the past, and the entrepreneur realizes the recombination between the factors of production and the conditions of production in order to obtain better "production results". Schumpeter further clearly pointed out the five situations of "innovation": product innovation, technological innovation, market innovation, resource allocation innovation and organizational innovation.

Figure 1 Concept of innovation.

In the 50s of the 20th century, Solow conducted a more systematic and comprehensive study of the theory of technological innovation, believing that "technology" as an exogenous condition, together with "labor" and "capital", contributed to economic growth, and thus established the Solow model of "neoclassical". Solow's research on the production function, Rosenberg's research on the mechanism of technological innovation process, Nelson's research on the theory of techno-economic evolution, and Romer's, Lucas's and others' research on the endogenous growth model of technological progress have greatly promoted the social dissemination and theoretical research of technological innovation theory.

Since Schumpeter first explicitly put forward the concept of "innovation" in 1912 and systematically expounded his concept and theory of innovation in 1934, innovation theory has continued to develop, experienced several generations of evolution, and has become the basis of understanding for the development of innovation modernization.

Of course, from the perspective of the stage division of innovation and modernization development, different scholars have different divisions for the intergenerational evolution of innovation and development.

Some scholars believe that the first generation is the technology-driven model (before the 60s), the second generation is the market-pull model (60s and 70s), the third generation is the coupling chain model (70s and 80s), the * is the integrated innovation model (80s and 90s), the fifth generation is the system integration and network model (90s and the end of the 20th century), the sixth generation is the innovation ecological model (the beginning of the 21st century) and so on

Some scholars believe that since Schumpeter, in the 70s, the American scholar Nelson and Winter were inspired by the theory of biological evolution to establish an innovative economic evolution theory, integrating technological innovation with institutional evolution innovation to form a second-generation innovation theory

In the 90s, Freeman and Lundvall created the third generation of innovation theory represented by the national innovation system, and the regional innovation system, the industrial sector innovation system, the enterprise innovation system, the innovation network, and the integrated innovation emerged

In 2003, the American scholar Chesbrough proposed open innovation, which is regarded by some scholars as the best innovation theory, "open innovation" or "open innovation" (open innovation), which is a new concept of management, economics and strategy compared to the "closed innovation" that focuses on the internal research and development of the laboratory and integrates the internal resources of the enterprise.

Different divisions have different perspectives and concerns, but the common point is that as the generation of innovation increases, the greater the complexity and uncertainty of innovation.

Figure 2 Evolution of innovation theory.

The change of innovation theory is the driving force for the development of innovation and modernization. The evolution of innovation is not a simple generational change, nor is it a continuous superposition of one-way progress, but an adaptive, performative and conditional change of innovation mode. Therefore, innovation modernization itself is also evolving in a more complex, ecological and collaborative direction with the in-depth intersection of technological evolution, industrial transformation and social development.

Second, the basic concept and logical relationship of innovation and modernization.

01 The concept of innovation and modernization.

The essence of innovation modernization is the intersection of scientific and technological modernization and industrial modernization, which refers to taking enterprises as the main body of scientific and technological innovation, constantly creating new wealth and benefiting mankind through technological innovation, organizational innovation, cultural innovation, etc., constantly optimizing the living space and environment, and maintaining an advanced socialization state that keeps pace with the times and leads the development of the times.

The scientific and technological revolution is the main driving force for innovation and modernization. The first and second scientific and technological revolutions gave birth to Britain, Germany, and the United States becoming developed capitalist countries in the world, established the global economic order under the leadership of the West, established the capitalist system in the world, and pushed the world's modernization to a historical climax.

The third scientific and technological revolution is another major leap in the field of science and technology in the history of human civilization after the revolution in steam technology and electric power technology. This scientific and technological revolution has not only greatly promoted the changes in the social, economic, political, and cultural fields of mankind, but also affected the way of life and thinking of human beings, and made human social life and human modernization develop to a higher realm.

02 The logical relationship of innovation and modernization.

According to Schumpeter's definition of innovation theory, we put forward the three-layer logical relationship of innovation modernization from the generation of innovation, value, and internal and external relations.

Clause. First, the kernel layer, that is, the internal innovation power, is the basic core of the formation of innovation and modernization. Innovation is endogenous in the production process. "By 'development' we mean only changes in economic life that are not imposed on it from within, but that occur from within". Although changes in the amount of capital invested and labor can lead to changes in economic life, they are not the only economic changes;There is another kind of economic change, which cannot be explained by the impact of data from the outside, it occurs from within the system. This change is the cause of so many important economic phenomena that it seems worthwhile to build a theory for it. This other economic change is "innovation".

Innovation is a "revolutionary" change. Schumpeter once made the analogy that no matter how many post wagons or mail cars you add up in succession, you will never get a railroad. "And it is precisely this 'revolutionary' change that is what we are dealing with, that is, the question of economic development in a very narrow and formal sense. This fully emphasizes the characteristics of the suddenness and discontinuity of innovation, and advocates the "dynamic" analysis and study of economic development.

Clause. Second, at the organizational level, the main body of innovation and modernization is "entrepreneurs". Schumpeter called the realization of a "new combination" a "firm", and the people who make it their profession to realize this "new combination" are "entrepreneurs". Therefore, the core function of the entrepreneur is not to operate or manage, but to see if he can execute this "new combination". This core function, in turn, distinguishes genuine entrepreneurial activity from other activities. Every entrepreneur is only a true entrepreneur if he or she actually achieves some kind of "new combination". This makes it possible for "being an entrepreneur to be an entrepreneur is not a profession, nor is it generally a permanent condition, so entrepreneurs do not form a social class in the special sense of the word." Schumpeter's unique definition of the entrepreneur aims to highlight the particularity of innovation and illustrate the special value of innovative activities. However, taking whether or not a certain "new combination" can be actually realized as the intrinsic prescriptiveness of entrepreneurs puts too much emphasis on the dynamic nature of entrepreneurs, which not only brings difficulties to the research on the subject of innovation, but also makes it difficult to grasp in the actual life process.

Clause. Third, on the outer side, innovation means destruction at the same time. Generally speaking, "new combinations do not have to be carried out by the same people who control the production or commercial processes that have been replaced by the process of innovation", i.e. it is not the owner of the stagecoach who builds the railway, but, on the contrary, the construction of the railroad implies the negation of the stagecoach. Thus, in competitive economic life, new combinations imply the elimination of old organizations through competition, albeit in different ways. For example, innovation and destruction in a state of perfect competition often occur between two different economic entities;With the development of the economy and the expansion of economic entities, innovation is more transformed into a kind of self-renewal within economic entities.

Innovation must be able to create new value. Schumpeter believed that invention comes first, and innovation comes later;Invention is the discovery of a new tool or method, whereas innovation is the application of a new tool or method. "As long as the invention has not been actually applied, it is not economically viable. "Because the use of new tools or methods plays a role in economic development, the most important meaning is to be able to create new value. Separating invention from innovation has its own theoretical flaws;However, it is of great significance to emphasize that innovation is the application of new tools or new methods, and new economic value must be generated, which is of great significance for the research of innovation theory. Therefore, this idea has been inherited by many scholars who have studied innovation theory since then.

Innovation and modernization are the essential provisions of economic development. Schumpeter sought to introduce innovative concepts in order to explain economic development in terms of mechanisms. In his view, the economy can be divided into two situations: "growth" and "development". The so-called economic growth cannot be called development if it is caused by the growth of population and capital. "Because it does not produce a phenomenon that is qualitatively new, but only the same process of adaptation, like change in natural data. "The development we mean is a peculiar phenomenon, quite different from what we might observe in the cycle or in the trend towards equilibrium. It is a spontaneous and intermittent change in the circulation channel, a disturbance of equilibrium, which is forever changing and replacing the pre-existing equilibrium state. Our theory of development is nothing more than an exposition of this phenomenon and the processes that accompany it. So, "what we mean by development can be defined as the execution of new combinations." That is to say, development is the interruption of the process of economic circulation, that is, the realization of innovation, innovation is the essence of development, and innovation and modernization are the link system of science and technology and development.

3. The requirements of innovative modernization and Chinese-style modernization.

01 The essential requirements of innovation and modernization.

In the drive of innovation and modernization, we must have an ecological consciousness. Innovation ecology refers to the formation of an open and complex system of symbiotic competition and dynamic evolution between various innovation communities and the innovation environment in an interval through the connection and transmission of material flow, energy flow and information flow. Innovation is the internal driving force of scientific and technological development, and has increasingly become a key element in the transformation of old and new kinetic energy and the promotion of high-quality social development. This requires that scientific and technological innovation must shift from emphasizing speed and quantity to the development direction of emphasizing ecology. Innovation and modernization in the context of Chinese-style modernization requires that current innovation should create a good innovation ecology, let the "seeds" of innovation continue to take root, let the "seedlings" of science and technology innovation thrive, and finally form a "tropical rainforest" innovation ecology of symbiosis and co-prosperity of towering trees and shrubs, so that the main body of innovation can grow and grow like mushrooms after a rain under a good innovation ecological environment.

It is necessary to have a sense of foresight in innovating and modernizing. At present, the global competition in scientific and technological innovation is intensifying. The rapid development of science and technology is reshaping the global industrial chain, innovation chain, and value chain, changing the arena and rules of industrial and economic competition, and promoting profound changes in the balance of power among countries. Major countries have strengthened the frontier areas of scientific and technological innovation and the layout of future industries, accelerated the gathering of advantageous innovation resources, accelerated the promotion of disruptive technological breakthroughs, stepped up the establishment of new rules for scientific and technological and industrial competition, and tried to seize the initiative in a new round of competition. Countries are focusing on new technologies such as information, biology, materials, and energy to nurture future industries. The United States has proposed to focus on the development of new technologies such as artificial intelligence, advanced manufacturing, quantum information science and 5G communicationsJapan focuses on supporting the development of future industries such as artificial intelligence, digital economy, and environment and energyIn Korea, radiation technology is defined as a next-generation "new nuclear energy industry" and is being cultivated with a focus on it. At present, the competition for high-end innovation elements such as knowledge, technology, and talents is intensifying, and the competition for the leading role in innovation rules, regulation, management, and standard formulation continues to increase. Innovation and modernization in the context of Chinese-style modernization requires a higher level of strategic cognition and vision, advanced layout of key technologies and future industries, and strive to construct a strategic layout of scientific and technological innovation with international first-mover advantages.

In the drive of innovation and modernization, it is necessary to have an industrial consciousness. According to the United Nations International Standard Industrial Classification Index for All Economic Activities (1971), China does not lack any kind of industrial category, which is a unique advantage of China's industrial development. The characteristics of the whole industrial chain are conducive to improving the innovation efficiency of each industrial chain, and from a micro point of view, a complete industrial system is conducive to building an enterprise-based innovation system, which can reduce the innovation cost of upstream and downstream enterprises in the industrial chain and improve the production efficiency of enterprisesFrom a macro perspective, the whole industrial chain is conducive to increasing the risk resistance of China's industrial chain in the international industrial position, and making the high-quality development of China's economy more stable. The phenomenon of regional industrial agglomeration in China's industry has greatly promoted the formation of the regional innovation system, which is conducive to the faster agglomeration of innovation elements in the region and in turn promotes innovation. Industrial agglomeration will greatly enhance the efficiency of innovation in the region and improve the efficiency of the transformation of technological achievements. Therefore, innovation modernization needs to pay more attention to the construction of the industrial chain and promote innovation with industrial awareness.

In innovating and modernizing, we must have a sense of efficiency. ** The general secretary emphasized: "It is necessary not only to create higher efficiency than capitalism, but also to more effectively safeguard social fairness, and better realize the balance, promotion and unity of efficiency and fairness." "At present, the situation at home and abroad has undergone profound and complex changes, and China's scientific and technological innovation is still facing problems such as weak original innovation ability, low overall efficiency of innovation system, and low efficiency of scientific and technological input and output. Under the new situation, China's long-term main reliance on resources, capital, labor and other factors to support economic growth and scale expansion has been unsustainable, China's development is facing the heavy task of power transformation, mode transformation, structural adjustment, China's low-cost resources and factor input to form the driving force is significantly weakened, the need to deeply implement the innovation-driven development strategy, focus on improving the strategic support role of innovation efficiency for China's high-quality economic development, and lay a solid foundation for building a modern socialist country. Innovation and modernization in the context of Chinese-style modernization need to pay more attention to the improvement of innovation efficiency, which is more conducive to the innovation speed of China's scientific and technological innovation, and promotes the rapid development of China's enterprises and the construction of international competitive advantages.

02Innovation and modernization help Chinese modernization.

The report of the 20th National Congress of the Communist Party of China clearly stated that the central task of the Communist Party of China is to "comprehensively promote the great rejuvenation of the Chinese nation with Chinese-style modernization", and gave a detailed interpretation of "Chinese-style modernization", clearly explained the basic connotation of Chinese-style modernization, and summarized Chinese-style modernization as "modernization with a huge population, modernization of common prosperity for all people, modernization of coordination between material civilization and spiritual civilization, modernization of harmonious coexistence between man and nature, and modernization of taking the path of peaceful development". There is a clearer roadmap for promoting the great rejuvenation of the Chinese nation, and there is a new understanding and transcendence of the modernization theory.

There is a certain theoretical basis for realizing innovative modernization in the context of Chinese-style modernization. To achieve innovation modernization, it is necessary to rely on the national innovation system, and the theory of the national innovation system is based on the national innovation system represented by Freeman, that is, the innovation network built by the public and private sectors to realize the creation, introduction, improvement and diffusion of technology. He believes that Japan promotes scientific and technological development and economic growth through science and technology policies. It can be seen that innovation modernization needs to rely on the national innovation system and rely on top-level design, strategic planning and industry guidance to achieve innovation modernization in the context of Chinese-style modernization.

There is a solid historical logic to realize innovative modernization in the context of Chinese-style modernization. Since the founding of the People's Republic of China, China's scientific and technological innovation work has entered the stage of "leading" from the stage of "following". For a long time, China's innovation work has been benchmarked against Western developed countries, and now the Chinese modernization proposal has broken the misunderstanding that "modernization" is equal to "Westernization", and the innovation in the context of Chinese modernization should also be different from Western countries for redefinition, that is, the current and future innovation should rely on the characteristics of Chinese modernization to achieve innovation modernization. In the context of Chinese-style modernization, innovation and modernization should not copy and copy the Western model, but should be in line with the five characteristics of Chinese-style modernization, and should serve the innovation and modernization of a huge population, the realization of common prosperity for all people, the coordinated development of material and spiritual civilizations, the harmonious coexistence of man and nature, and the path of peaceful development.

In the context of Chinese-style modernization, the realization of innovative modernization has a realistic logic that conforms to social development. Innovation and modernization are in line with the phased law of China's current innovation and development, and China's economic development has entered a stage of high-quality development, and it already has the foundation for high-quality development. According to the Global Innovation Index, China ranked 11th in the world in 2022, ranking first in a number of innovation quantitative indicators such as the number of self-respecting patent applications and the number of applications in the above table. Therefore, China already has the foundation for high-quality development and has the stage of "leading" innovation. Secondly, the general secretary profoundly pointed out that "innovation is a decisive factor in building a modern socialist country in an all-round way and realizing the second centenary goal", emphasizing that "innovation is the first driving force to lead development." To grasp innovation is to grasp development, and to seek innovation is to seek the future". It requires us to actively adapt to the iterative trend and internal laws of scientific and technological innovation, strengthen forward-looking awareness, focus on the main direction of attack, unremittingly improve innovation capabilities, and accelerate the construction of a new development pattern and promote high-quality development driven by high-level innovation.

Authors: Han Lu1, Liu Huiwu1,2

1 Research Center of China High-tech Zone.

2 Institute of Science and Technology Strategy Consulting, Chinese Academy of Sciences.

This article is from WeChat***High-tech Zone Research Center.

Thank you for your support and attention, and welcome to submit papers.

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