Abstract
Technical innovation and institutional innovation are indispensable to the development of enterprises. From different points of view, different schools of thought have different theories on the relationship between technical innovation and institutional innovation. What is the relationship between them? Which is more important? Based on the fact that technical innovation and institutional innovation are interactive and have dynamic contradictions, this essay probes into this kind of relationship. On the one hand, technical innovation is the base and motive of institutional innovation. It both supports and restricts the institutional innovation. On the other hand, institutional innovation guides, supports and protects the technical innovation. In view of this, the essay proposes that technical innovation should be regarded as a decisive factor to push forward and decide the change and innovation of institution and make a reality interactive and coupling relationship between them.
Highlights
Since 1990s, enterprises in China have attached more importance on technical innovation than ever
As technical innovation falls into the category of productive forces and institutional innovation falls into the category of production relations, the dialectical unity with productive forces and production relations reflects the relation between technical innovation and institutional innovation. (1)Productive forces determine the productive relations
According to Marxist Political Economics, technical innovation falls into the category of productive forces and institutional innovation falls into the category of production relations, so technical innovation determines the institutional innovation. (2)Production relations adversely affect the production forces
Summary
Since 1990s, enterprises in China have attached more importance on technical innovation than ever. Techno-Determinism, represented by Veblen, insists that technical innovation is the dynamic factor of economic growth and change of technology will determine the change of institution. He considers that advance of technology is prerequisite while the adjustment of institution and social ideology are sufficient for economic growth.
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