Two papers focusing on China’s economy authored by professors from NJU Business School have been collected in the latest issue, No. 5, 2024, of Xinhua News Agency Digest (Xinhua News Agency Wenzhai).
The two papers delve into two key issues of China’s economy.The first paper, "Research on Improving the Basic System of Market Economy" by Prof. Hong Yinxing's team examines the basic system of the market economy in China's economy construction. The second one "Complex Networks-Based Interconnected Innovation in Chinese Enterprises" by Prof. An Tongliang’s team explores interconnected innovation of Chinese enterprises in the era of digital economy.
Abstracts of the papers are shown below:
1. Research on Improving the Basic System of Market Economy, authored by Hong Yin-xing, Wang Hui-ying, and Wang Yu, originally published on Economist (Issue 11, 2023)
Promoting Chinese-style modernization requires a high-standard market economy system, and the key is to improve the basic system of the market economy. Improvement of the property rights protection system not only protects ownership, but also protects the various property rights and interests divided and separated in the property rights structure. The significance of this is to stimulate the vitality of multiple ownership economies, strengthen the incentive function of property rights, promote the efficiency of assets in circulation, and support innovation-driven economic development. There are two main aspects of market access: First, there are markets to enter. Second, there are no restrictions on market access, there are neither market monopolies nor administrative monopolies, and there is no discrimination in terms of ownership. The key to building a unified national market and improving the fair competition system lies in orderly competition, so that opportunistic behavior cannot be allowed to profit from disorderly competition. Anti-market monopoly is not simply to oppose the form of monopoly organization, but needs to oppose all kinds of monopoly behaviors that impede competition as well as unfair competition behaviors committed by monopolistic enterprises taking advantage of their monopoly status. Improving the social credit system mainly involves institutional credit and moral credit, which complement each other, and the combination of the two is the social credit system. Improving the social credit governance system, especially financial regulation, requires not only macroprudence but also microprudence. The construction of a social credit system needs to utilize technological means under the conditions of the digital economy.
2. Complex Networks-Based Interconnected Innovation in Chinese Enterprises, authored by An Tongliang, Wei Jie, and Jiang Ge, originally published on Social Science in China (Issue 10, 2023)
Digital technology has profoundly affected enterprises' innovation behavior, and the linear and interactive innovation in the industrial era is changing to a new mode in the digital era-the interconnected innovation. Interconnected innovation is an innovation model in which multiple distributed agents embedded in the Internet — including firms, heterogeneous knowledge bodies and consumers — establish extensive connections through target knowledge search, resulting in knowledge enrichment and the emergence of innovation.The article constructs an interconnected innovation model based on complex networks to reveal the characteristics of the interconnected innovation network structure and analyses the behavioral characteristics of enterprises as nodes in the process of interconnected innovation network evolution, and empirically tests enterprises' interconnected innovation behavioral mechanism using the data of listed companies in China. The results show that in the digital economy, the more deeply an enterprise is embedded in the interconnected innovation network and the more interconnected innovation activities it carries out, the better will be its innovation performance, because the interconnected innovation behaviors will form the basic characteristics of innovation cost-saving and knowledge preference connections. Interconnected innovation provides a new path for Chinese technological latecomers to search for knowledge, make breakthroughs in core technologies, and regulate innovation.
Writer: Lin Tong
Editor: Shao Yihang
