Function Mechanism & Simulation of “Chain Mode Innovation” Policy in the Optimization and Upgrading of the Industry Structure

ABSTRACT

This article explicitly stated the concept of national value chain and “chain mode innovation” from the two perspectives: first is to organize capable enterprises embedded in the value chain of global industry, and urge them to stretch on both ends of the “smiling curve” to reach a higher level of cooperation, and then catch the leading position of the value chain; second is to construct technology innovation system that matches the development of related industries, cultivate the national prominent value chain of domestic companies, evolve the global value chain to a higher level through the continuous optimization and upgrading of the industrial structure; next is to explain function mechanism of “chain mode innovation” and framework of industrial policy mix, design and simulate the evolution process under the action of the policy, then evaluate the effect of the policy mix. Finally it is concluded that policy mix of “chain mode innovation” has the best effect.

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