The research on the technological innovation capability of enterprise from effective demand perspective

Abstract

This paper researched the technological innovation capability of enterprises in the theoretical and empirical levels from effective demand perspective. The scale of effective demand is the key factor that affects on enterprise to carry out technological innovation. The income gap and market segmentation have a decisive impact on the effective demand. The escalated income gap has formed the deformed demand structure and preferences. Simultaneously, China's domestic market segmentation has greatly weakened the expansion and extension of effective demand scale. That have weakened the inducing effects on enterprise technology innovation' power caused by the effective demand. Both theoretical and empirical analysis show that, at the policy level, China should further expand effective demand and exert the important role of induced demand for innovation.