Hyper-cycle Self-organizing Evolution of Industrial Innovation

Transcription

1 Hyper-cycle Self-organzng Evoluton of Industral Innovaton Zhao Yuln We Fang School of Economcs, Wuhan Unversty of Technology, Wuhan, P.R.Chna, (E-mal: Abstract Industral nnovaton s the process of the formaton and promoton of ndustral compettve advantage. Usng bologcal evoluton theory and self-organzaton theory, ths paper reveals the dynamc evolutonary law of ndustral nnovaton. It also ponts out that ndustral nnovaton s a hyper-cycle evolutonary process, whch s evolved from ndustral formaton nnovaton, ndustral organzaton nnovaton to ndustral structure nnovaton. Induced by S&T nnovaton, the synergetc functon produced by product nnovaton, technologcal nnovaton and market nnovaton, promotes the development of ndustral formaton nnovaton, ndustral organzaton nnovaton and ndustral structure nnovaton. Such an evoluton demonstrates a hgher cycle level and stronger self-organzng ablty. Key words ndustral Innovaton, self-organzaton evoluton, hyper-cycle 1 Introducton It s a new feld of nnovaton theory that uses bologcal evoluton theory and self-organzaton prncples and methods to research the dynamc evolutonary law of nnovaton. As Nelson and Wnter (1982) have ponted out evoluton theory has the most mportant applcatons to research on ndustral changes [1]. Chrs Freeman and Luc Soete (1997) have dscussed that evolutonary pont of vew s the most mportant, when studyng on technologcal changes [2]. John Zman (2000) llumnated that the ndustral technologcal nnovaton can be consdered as a co-evoluton ecosystem [3]. Evoluton theory has wde applcatons n ndustral nnovaton. It lays theoretcal and methodologcal bass for the developng countres to acheve success of ndustral nnovaton, so that catch up wth developed ndustres and upgrade compettve advantage n the feld of knowledge nnovaton. From the perspectve of ndustral evoluton, ths paper use Hyper-cycle theory to research ndustral nnovaton evoluton. It wll not only enrch the academc research results, but also has mportant realstc sgnfcance on consttutng ndustral polcy and mprovng nternatonal compettveness. The remander of ths paper s structured as follows. Secton 2 analyzes the premse of hyper-cycle evoluton. We ntroduce the three basc forms of ndustral nnovaton and draw an analogy between bologcal evoluton system and ndustral nnovaton evoluton n secton 3. Secton 4 reveals the hyper-cycle evolutonary mechansm of the ndustral nnovaton. We analyze the ndustral nnovaton of Japan s Electron Industry as a case n secton 5. Fnally, we summarze our man fndngs and conclude the study. 2 The Premse of Hyper-cycle Structure Hyper-cycle theory s a prncple of natural self-organzaton, whch s advanced by M Egen (1979). Accordng to the level of evoluton, there are three levels whch are reacton cycle, catalytc cycle and hyper-cycle [4]. Hyper-cycle a specfc mechansm of the orgn of lfe, can explan evolutonary process of the system structure. Selectve Evolutonary theory s the gudng prncple of hyper-cycle, and s also the premse of hyper-cycle structure. When we use Hyper-cycle theory to study on ndustral nnovaton evoluton, t should accord wth Selectve Evolutonary theory frst, that s, t should llumnate the elements of selectvty and evoluton, and necessary condtons of engenderng Darwn Behavor. 2.1 Metabolsm The metabolsm of ndustral nnovaton evoluton s on the bass of oppostes and unformty, whch s assmlaton and catabolsm. Ths contradcton s the source of evoluton. Industral system constantly obtans nnovatve resources from outsde, such as personnel, products, money, technology, nformaton, and combnes them by the nsde operatng mechansm. After varous nternal crculatons, dgeston and absorpton, they turn to producton factors. Ths process s assmlaton. On the contrary, ndustres can create new products by consumng materals. Products and technologes can mprove through product nnovaton, ndustral nnovaton, and market nnovaton etc. Then ndustral 926

2 compettve advantages wll be enhanced. The process s called catabolsm. Assmlaton and catabolsm s mutual condton. One can not do wthout the other. Otherwse converson wll stop, and the ndustry des smultaneously. 2.2 Self-replcaton The molecular structure n competton needs a knd of nternal capacty to gude ts own synthess. Ths self-catalyze s necessary for any self-selecton mechansm. It wll lose stablty, when there s a sngle copy whch s benefcal to mutaton. Therefore, self-replcaton capacty s a necessary condton to accumulate and preserve nformaton for system. Wth the development of an enterprse or ndustry, nnovaton s self-replcatng. Ther technology and capacty of personnel constantly mprove through self-accumulaton. There are traces of orgnal nnovaton as well as reproducton and self-replcaton. It upgrades spral and turns to a new self, thereby acheve the success of ndustral nnovaton. 2.3 Varaton Varaton n physcs always assocated wth self-replcaton, but t s also necessary for evoluton. Varaton means new nformaton emergng. It s lkely to form mutaton whch s sutable for survval. However, when t evolves fastest, mutaton rate has a certan threshold value whch can not exceed, except that all the accumulated nformaton s lost n the course of evoluton. In process of ndustral nnovaton there are many changes such as economc polcy, technology, and supply channels of raw materal, enterprses strateges compettve stuaton, and users needs. Any change s lkely to affect success or falure of nnovaton, so that a qualtatve change would happen n ndustral nnovaton. 2.4 Dynamc Dfferental Equaton of Industral Innovaton Evoluton. We suppose that s a enterprse whch can self-replcate. x stands for ts growng rate. x dx / dt refers to the changng coeffcent of the enterprse. A Q x stands for spontaneous metabolsm, that s, assmlaton. D x s spontaneous catabolsm. Spontanety means the two reactons have postve appetency. A contans all the matter and energy for nnovaton. Qualty gene Q descrbes varaton. Q refers to the rate of correct replcaton. w k s a parameter whch stands for the contrbuton. w x s k k k the total contrbuton. Φ s the ndvdual flow, whch represents the success or falure of nnovaton. And then we can get the dynamc dfferental equaton that descrbes the process of ndustral nnovaton evoluton. As shown n Equaton 1.. x ( AQ D ) x + w x + Φ (1) 3 The Basc Forms of Industral Innovaton Chrs Freeman, founder of Industral Innovaton Theory, has ponted out nnovaton s a systemc concept, ncludng techncal nnovaton, product nnovaton, technologcal nnovaton, management nnovaton (ncludng organzatonal nnovaton) and market nnovaton. We thnk that ndustral nnovaton s a knd of systemc nnovaton, whch contans knowledge nnovaton, technology nnovaton, market nnovaton and organzatonal nnovaton etc. Knowledge nnovaton s orgnator, whle technology nnovaton s core. It s a process of changng ndustral state, ncludng change ndustral form and structure. Therefore, the process of ndustral nnovaton s that of enhancng ndustral compettve advantage. There are three basc forms of ndustral nnovaton, namely ndustral formaton nnovaton, ndustral organzaton nnovaton and ndustral structure nnovaton. 3.1 Industral Formaton Innovaton Industral formaton nnovaton refers to nnovaton of a sngle ndustry, that s, the formaton process of a new ndustry. It can be descrbed as follows. Enterprses, ndustral basc elements, have ntally establshed dvson system by mutual cooperaton. Then they ntegrate varous resources develop from scratch, eventually offer products or servce ndependently. The process of ndustral formaton nnovaton s just the course of mprovng compettve advantage, that s, the formaton process of a new ndustry through knowledge nnovaton, technologcal nnovaton, and technologcal nnovaton. For example, cassette recorder was nvented by Phlp Co. of Holland n In 1975 Sony Co. made the vdeo recorder frst. Then Panasonc Co. carred out market nnovaton to mprove qualty, reduce product capacty, cut producton cost and prce. As a result, market rato of Panasonc Co. was hgher than that of Sony Co. It s product nnovaton, techncal nnovaton and market nnovaton that realze the process of ndustral formaton nnovaton. 3.2 Industral Organzaton Innovaton k k k 927

3 Industral organzaton nnovaton s the fundamental changes n organzatonal structure. Compared wth technologcal nnovaton, technologcal mtaton costs much lower and has less rsk, so the achevements n technologcal nnovaton can be easly mtated. In order to mantan sustanable compettveness, an ndustry must have organzaton nnovaton. When t comes to Handcraft Industry, Large-scale Machne Producton s ndustral organzaton nnovaton. So s the emergence of monopoly ndustres. Snce market competes fercely, the orgnal form of ndustral organzaton has been some new changes, such as prevously the orgnal ndvdual enterprses expand through mergers and acqustons. Now many small and medum enterprses through nnovatve network concentrate n the same area to acheve ndustral-scale expanson and ndustral organzaton nnovaton has also realzed. Scott and Storper (1992) ponted out the world becomes obvous economc mosac n a form because of ndustral agglomeraton, whch created the man wealth of world [5]. Such as n mddle of 1990s, the amount of 380 ndustral agglomeraton areas n the Unted States gave brth to 60% output. Not only there s car ndustral agglomeraton of 20th century n Detrot, but also there s Slcon Valley whch appears n 1960s, solds n 1980s, consdered as the classc ndustral agglomeraton. Today, ndustral agglomeraton has compettve advantage and plays an mportant role on the development of economy. 3.3 Industral Structure Innovaton Industral structure nnovaton refers to the structure changes of tradtonal ndustral system, that s to say, ndustral border becomes fuzzy, ndustral structure turns flexble, and new ndustral system s gradually takng shape, whch s called the emergence of ndustral convergence. Schumpeter (1990) sad that nnovaton s smlar to Bologcal Mutaton Theory [6]. That s to reform the economc structure contnuously, to destroy the old and create new structures, to mutate a knd of "creatve destructon". Therefore, Industral structure nnovaton can be consdered as evoluton of ndustral structure. Snce 1990s, wth the development of nformaton and the extensve applcaton of Internet, t pushes forward to the convergence of publshng, televson, musc, advertsement and educaton etc. Accordng to the analyss, n recent years the contrbuton rate of IT ndustry to economy n the Unted States s over 35%. At present, through ndustral convergence, nformaton technque s used n every aspect of manufacturng ndustry and has revolutonary functon. 4 Hyper-cycle Structure of Industral Innovaton The three basc forms of ndustral nnovaton are just lke the three level cycle of evoluton. So we can use Hyper-cycle theory to research the dynamc evoluton law of ndustry nnovaton. 4.1 Reacton Cycle: Industral Formaton Innovaton Industral formaton nnovaton s on the bass of knowledge nnovaton, technologcal nventon and so on. Industry s a new one. There s no compettor n the market, so t has absolute advantage. Through product nnovaton, products are enrched and unt costs become lower. Productvty s mproved too. Through technologcal nnovaton, processes and producton equpment are updated, and producton methods are reformed. So productvty s also mproved and compettve advantage s enhanced. Through market nnovaton, many new markets emerge. It realzes commercalzaton, extends product lfe cycle, and accesses to more lastng nnovaton profts, thereby enhances ndustral compettveness. Industry formaton nnovaton s the process of a sngle ndustral nnovaton, equaled to a reacton cycle. For example, enterprses that make the same product are correspondng to mutants. Product nnovaton, technologcal nnovaton, and market nnovaton are smlar to enzyme for replcaton. After reacton cycle, t generates new technologes, new processes, and new markets, emergng more enterprses. Fnally t forms a new ndustry. As shown n Fgure 1. Here, E stands for Enterprse. Fgure 1 Reacton Cycle: Industral Formaton Innovaton 928

4 4.2 Catalytc Cycle: Industral Organzaton Innovaton Enterprses that have the same products cluster n the same area, sharng nfrastructure and servces, labor pool and technology spllovers. Thus these enterprses save transportaton costs, management costs, and transacton costs. Prevously there s compettve relatonshp among enterprses of the same ndustry, but now n condton of ndustral agglomeraton, cooperatve relaton comes nto beng. At last t acheves ndustral organzaton nnovaton. Industral agglomeraton has advantages of combnng resources. By ndustral agglomeraton, t provdes new busness or servces, and good envronment for nnovaton. Thereby nnovatve cooperaton s strengthened between users and producers. It wll help to mprove productvty, enhance compettve advantage. Industral agglomeraton s a form of organzatonal nnovaton. It s as well as a new space theory of ndustral organzaton. It s that mutant has varaton n the system. So catalytc cycle s formed n the ndustry, whch s ndustral organzaton nnovaton. As shown n Fgure 2. Here, IA stands for Industral Agglomeraton. Fgure 2 Catalytc Cycle: Industral Organzaton Innovaton 4.3 Hyper-cycle: Industral Structure Innovaton Wth the emergence of ndustral convergence, the orgnal Industral Classfcaton system s broken by operatonal convergence and technology convergence. The borders n technology, busness and market are dsappeared. A new ntegrated ndustral system forms. Industry convergence wll be conducve to ntegrate resources and avod repeated constructon. It promotes economy optmzed, ndustral structure adjusted and ndustry value chan formed. Industry convergence can ncrease the overall economc benefts, so as to enhance ndustral compettveness. Industry convergence wll create a new hghly compettve form and realze the evoluton of ndustral structure. Ths consttutes a hyper-cycle structure. As shown n Fgure 3. Here, IC stands for Industral Convergence. Fgure 3 Hyper-cycle: Industral Structure Innovaton 5 Emprcal Analyss: Industral Innovaton of Japan s Electron Industry After War II, Japan s electron ndustry develops fast. In 1966, Japan s ndustres, unverstes and research departments nnovated together, frst developed the ntegrated crcut technque nto color televson. But the wreless company of the Unted States couldn t sale the color televson of sold model untl Mddle of 1970s, Japan s color televson occuped half of the producton quota of world and exports the three quarters of world. In 1970s Japan successfully makes use of the electroncs technque that the Unted States used for publc product, home applances and car etc. It s ndustral convergence that helps Japan access to the market advantage. Table 1 descrbes the development of Japan s electron ndustry. 929

5 Table 1 the Development of Japan s Electron Industry year Producton value thousand bllon yen perod ncreasng rato per year % / / ~60s ~70s ~80s 10 Japan has stronger sprt of absorpton, dgeston and nnovaton. Though Japan s electronc technque mostly ntroduces from the Unted States, Japan's own technque level has overstepped the Unted States through techncal nnovaton, and organzatonal nnovaton etc. It has strong competton ablty n the world market. The development of Japan s electron ndustry s the process of ndustral nnovaton. 6 Conclusons Industral nnovaton s a hyper-cycle evolutonary process. It s from ndustral formaton nnovaton, ndustral organzaton nnovaton to ndustral structure nnovaton. Industral formaton nnovaton refers to nnovaton of a sngle ndustry, equaled to a reacton cycle. Industral organzaton nnovaton s the fundamental changes n organzatonal structure, whch s the catalytc cycle bass on ndustral formaton nnovaton. Industral structure nnovaton refers to ndustral border turns fuzzy, ndustral structure becomes flexble, and new ndustral system s gradually takng shape. It s hyper-cycle. Induced by S&T nnovaton, the synergetc functon produced by product nnovaton, technologcal nnovaton and market nnovaton, promotes ndustral formaton nnovaton, organzaton nnovaton and structure nnovaton. Cycle level s hgher, and self-organzng s much stronger. In order to enhance natonal and regonal ndustral compettveness, we should strengthen S&T nnovaton, and promote ndustral formaton converson, ndustral agglomeraton and ndustral convergence. References [1] Nelson, R.R. and Wnter, S.G.. An evolutonary theory of economc change [M]. London: Cambrdge Unversty Press, 1982: [2] Chrs Freeman and Luc Soete. The Economc of Industral Innovaton (Thrd Edton) [M]. London: Prnter, 1997: [3] John Zman. Technologcal Innovaton as an Evolutonary Process [C]. London: Cambrdge Unversty Press, 2000: 5 [4] M Egan and P Schuster. Translated by Zeng Guopng, Shen Xaofeng. Hyper-cycle theory [M]. Shangha: Shangha Translaton Press, 1990 : 4 5(In Chnese) [5] Scott A.J. and Storper, M.. Pathways to Industralzaton and Regonal Development [M]. London: Routledge, 1992: 3 20 [6] Joseph Schumpeter. Translated by HE We, Y Jaxang. Theory of Economc Development [M]. Bejng: The Commercal Press, 1990: (In Chnese) 930