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									Mar.2002                                                                      Mei-Zhong Jingji Pinglun,ISSN 1536-9048
Volume 2,NO.3 (Serial No.4)                                                   USA-China Business Review,New York City,USA



           Study on Enterprise’s Technological Innovation Ability Index
                                     Based on Complexity Analysis
                                             Ximing Sun1       Jinglong Zhang2


     Abstract: As enterprise’s technological innovation is a complex process, study on the ability index must
apply the theories and methods of system engineering and should be based on complexity analysis. This paper
discusses enterprise’s technological innovation ability index with the method of systematic analysis, putting
studies of others together.
     Keywords:       Enterprise’s technological innovation; index system; complexity analysis


      Introduction:
    Enterprise’s technological innovation is the technological activity of making realistic or latent improvement in
the variety, function, quality and service of it’s products or services. With the integration of world economy and
the opening of all economies, international competition is getting more and more vigorous. As to China, it’s
accession to WTO has made technological innovation3 the motive force of enterprises’ exiting and progressing.
There are pressures from market demands and competitions and pushes from enterprises’ internal economical
interests and employees’ spiritual pursuit. Under these circumstances, it has become a important part of
enterprise’s strategic management that how the technological innovation ability can be recognized and improved,
how to formulate the index system of appraisal and thereafter, how to handle the innovation process and lead it to
standardization through regular evaluating and inspecting. As enterprise’s technological innovation is a complex
process, study on the ability index must apply the theories and methods of system engineering and should be
based on complexity analysis. This paper discusses enterprise’s technological innovation ability index with the
method of systematic analysis, putting studies of others together.


      The basic principles of establishing enterprise’s technological innovation ability index
     Scientificity. The quality of appraisal is closely related to the scientificity and reasonableness of the index
system. In order to reflect the connotation and regularity of technological innovation, the index must be
representational, complete and systematic. Based on modern technical statistic theory, both qualitative and
quantitative index should be adopted to ensure reasonable and objective conclusions.
     Orientation. The purpose of establishing technological innovation ability index is to standardize and
orientate the innovation activities and monitor them.


1
  Ximing Sun, Ph.D candidate of Huazhong University of Science and Technology, Assistant professor of Wuhan Institute of
             Chemical and Technology. E-mail: xmsun65@sohu.com.cn,
2
  Jinlong Zhang, professor and Ph.D advisor of Huazhong University of Science and Technology,E-mail: jlzhang@public.wh.hb.cn
-----This paper would like to thank Science Fund of Hubei province . Support Numbers: 20001p2501.


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               Study on Enterprise’s Technological Innovation Ability Index Based on Complexity Analysis


    Comparability. The indexes must be quantitative and expressed in relative value. That makes the
comparison of different periods practicable and thus promote the development of enterprise’s innovation.
     Operability. The primary purpose of establishing technological innovation ability is to put it to practice in
enterprise’s innovation work. Therefore, the practicability and operability are needed for the index system and it’s
appraisal methods. The setting of the index system should try not to slip into a army of indexes or complicatedly
leveled index tree. Generally, the data should be easy to collect and the formula must be simple, which makes the
appraisal process easy to handle.


     The definition of enterprise’s technological innovation ability
      According to traditional research findings, enterprise’s technological innovation ability is the ability of using
new innovated technology to drive the development of enterprises. That is, to enhance the enterprise’s competition
ability of meeting or creating market demands through introduction or development of new technologies. Modern
technological innovation ability is a combined conception. It can be reflected in all aspects of the enterprises. It is
generally admitted that six major aspects are involved, namely, innovation resource input, innovation management,
innovation inclination, R&D, manufacture and marketing.
      Innovation resource input. It refers to the quality and quantity of new resource which is put into innovation.
According to international practice, it can be divided into R&D input and non-R&D input. The former mainly
consists of expenditure, staff, and equipment. The later covers two aspects: one is the expense on activities other
than R&D, including market research, designing, craftwork and materials, trial-sale and advertising. The other is
the investment on introduction and reformation of technology.
     Innovation management. The ability of innovation management is shown as the ability of generating and
evaluating innovation opportunities as well as that of organizing and managing innovation activities. An enterprise
which is good at innovation management must have clear and feasible innovation strategy and effective
innovation mechanism. Since systematization is one of the basic characteristics of modern technological
innovation activity, effective innovation mechanism includes the innovation staff being reasonably settled,
excellent communication channels among R&D, manufacturing, marketing and administrative which can realize
collaborations among different departments, effective staff floating and awarding measures, a set of scientific
means of selecting innovation projects and effective cooperation with external technological resources such as
universities and research institutions.
      Innovation inclination. Technical innovation is the result of entrepreneurs’ seeking of excellence and
positive enterprising and the embody of entrepreneurship. It centrally reflects the innovative consciousness and
ability. Shown as high innovation rate, broad innovation view, long-term innovation plan and strong innovation
desire, innovation inclination is the spirit of go-ahead and look-forward that entrepreneurs possess.
     R&D. R&D competence results from accumulative innovation resource input. But it cannot be replaced by
the ability of innovation resource input. The later emphasizes not only R&D input but also non- R&D input, while
the former places emphasize only on the output. As far as introduction of technology is concerned, the ability of
absorption after introducing can serve as one of the measure index of the enterprise’s R&D competence.
     Manufacture. This refers to the ability of transferring the research findings in the lab into products up to


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               Study on Enterprise’s Technological Innovation Ability Index Based on Complexity Analysis


the design. It is usually shown in two aspects: enterprise’s advanced equipment; workers’ technical rank,
adaptability and quality of work.
      Marketing. Marketing ability involved in technological innovation is not only the ability to promote the
developed products but also the ability to make customers accept them through market study and to enlarge the
market share of new products by improving them according to the feedback from users and competitors.
Enterprise’s innovation ability based on the standpoint of “process” is the integrated ability of the enterprise as a
whole to analyze the market’s technical needs, conceive and plan innovation, do the R&D, manufacture and
realize the value. More important, those activities are series-connected, instead of paralleled as described by
traditional views. That means different steps of the process affect each other, which is quite obvious. Broadly
speaking, the quality of the earlier round of innovation will affect that of the next round too.


     Enterprise’s technological innovation ability index
     According to different comprehension of enterprise’s technological innovation ability,many scholars have
established different index systems which also have some commonness. Based on the previously discussed
principles and with reference to《Establishment and Synthetically Appraisal of Enterprise’s Technological
Innovation Ability Index System》, Multi-hiberarchy Grey Appraisal of Enterprise’ Technological Innovation
Ability, The Structure and Synthetically appraisal of Enterprise’s Technological innovation Ability Index system
,Enterprise’s technological Innovation Ability Appraisal Index system Research,and the analysis of innovation
successes and failures made by British economists: J. Langrish, Flaiman, R.G.Cooper, this paper establishes the
appraisal index system presented in the chart 1. There are marking and classifying in the index system. “C” means
quantitative index and “U” means qualitative index. Because of the limited space, the meaning of each index and
the ground of classifying is not explained.


     References
[1]Shi xiaoyan, Establishment and Synthetically Appraisal of Enterprise’s Technological Innovation Ability Index
   System, Journal of Shanxi Economic & Trade Institute.
[2]Tang yantao, Zhou shanggang, Multi-Hiberachy Grey Appraisal of Enterprise’ Technological Innovation Ability,
   Science & Technology Progress and Policy.
[3]Hu ehua, The Structure and Synthetically appraisal of Enterprise’s Technological innovation Ability Index
   system, Science Research Management.
[4]Chao chongyan, wang huaixue, Enterprise’s technological Innovation Ability Appraisal Index system Research,
   Prediction.


Attached:

                      Chart 1. Enterprise’s Technological Innovation Ability Index System



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                                   Study on Enterprise’s Technological Innovation Ability Index Based on Complexity Analysis



                                                                                                 R&D input intensity (A11) (C)

                                                                      Innovation Input Ability   Quality and quantity of R&D staff (A12) (C)
                                                                               (A1)              Non-R&D input intensity (A13) (C )
                                                                                                 Information collecting ability (A21) (U)
                                                                                                 Innovation inclination (A22) (U)
                                                                                                 Innovation mechanism (A23)(U)
                                                                      Innovation management
                                                                              ability            Enterprise culture and atmosphere (A24)(U)
     Enterprise’s technological Innovation ability index system




                                                                               (A2)              Technological innovation prediction and appraisal
                                                                                                 ability (A25) (U)
                                                                                                 Research and produce cooperation with outside
                                                                                                 organization ability (A26)(U)
                                                                                                 Technological level’s advanced degree (A31) (U)
                                                                                                 R&D success ration (A32)(C )
                                                                           R&D ability           Absorption ability (A33)(U)
                                                                               (A3)              The number of patent and possessed technology
                                                                                                 (A34)(C )
                                                                                                 Technological expanding (A35) (C)
                                                                                                 Equipment level’s advanced degree (A41) (C )

                                                                                                 Technical rank and work quality of staff (A42) (C )
                                                                         Produce Ability
                                                                                                 Usage ratio of modern marking technology (A43)( C )
                                                                               (A4)
                                                                                                 Introducing technology producing ratio (A44) (C )
                                                                                                 Standard work level (A45) (U )
                                                                                                 Marking comprehension degree (A51) (U )
                                                                        Innovation Marking
                                                                                                 Marking system adoption (A52) (U )
                                                                            Ability (A5)
                                                                                                 Marking web degree (A53) (C )
                                                                                                 Market share of new produce (A61)(C )
                                                                                                 Technological trade index (A62) (C )
                                                                     Innovation Output Ability
                                                                                                 Products market share (A63) (C )
                                                                               (A6)
                                                                                                 Technical level (A64 )( U )
                                                                                                 Enterprise competition (A65) (U )
                                                                  Chart 1. Enterprise’s Technological Innovation Ability Index System


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