Your current location:

20

2022

-

06

Digital Innovation Development Economic System: Framework, Evolution and Value-added Effects


Abstract:In the digital age, data as a new element enters the innovation and development economic system, changing the original element composition and subject relationship, and there is an urgent need to improve the theoretical basis of the research on the innovation and development economic system under the background of digitalization. This paper puts forward the concept of digital innovation development economic system and its analysis framework, and defines and understands the connotation of digital innovation development economic system from the two mutually integrated value-added systems of "economic system formed around digital self-innovation development (type I)" and "digital economic system of innovation development (type II). This paper holds that in the digital age, the continuous upgrading and breakthrough of digital technology, the continuous optimization of knowledge production methods, the continuous enhancement of the relationship between innovation factors, the continuous expansion of the boundaries of innovation subjects, and the continuous improvement of systems and conditions provide the driving force for the evolution of the economic system of digital innovation development. Finally, this paper expands Schumpeter's economic theory of innovation and development under the background of digitalization, and points out that the economic system of digital innovation and development realizes value-added through five types of channels, such as input innovation digitalization, product innovation digitalization, process innovation digitalization, market innovation digitalization and organizational innovation digitalization.

 

Key words:digitalization, innovation and development, economic system, digital technology, value creation

 

Abstract: The new wave of technological revolution and industrial transformation represented by digital technology is reconstructing the global economy and technology landscape. China is actively deploying digital transformation policies, hoping to promote the digital transformation of economy. The digitization has strengthened the connection of the innovation development elements, resulting in blurred boundary between different actors in the innovation system, making traditional innovation development theory faces a new environment. So, there is an urgent need to build a framework of digital innovation development economic system, and to characterize its evolutionary power and value-added path. Numerous literatures examined the impacts of digital transformation, revealed that digital transformation can not only affect innovation, but also create economic value. However, the existing research has not constructed a framework that combines digital innovation and digital economic development, which makes it difficult to systematically comprehend China′s digital transformation. In this study, we define the basic concepts such as data element, digitization, and innovation development economic system. Then we construct the framework of digital innovation development economic system from two aspects of "the economic system formed by innovation development of digital elements (Type I)" and "the digital transformation of the innovation development economic system (Type II)", which are deeply integrated and symbiotically evolving. Secondly, the paper analyzes the internal driving force of the digital innovation development economic system. It shows that the evolution of the digital innovation development economic system is as follows: the digital technology has become the core force of innovation development, promoted the transformation of scientific research paradigm to data-driven, strengthened the relationship among innovation elements, and expanded the scope of innovation actors. Furthermore, this paper introduces the changes of driving force caused by digital innovation development economic system into Schumpeter′s theoretical framework of innovation development. This study reveals the value creation effects of the digital innovation development economic system from five perspectives as followed: (1) Input innovation. Driving by digital technologies, data has become a new production factor and helps to optimize and reconstruct traditional production factors. (2) Product innovation. The digital transformation can enrich the variety of products, but also improve products′ quality. (3) Process innovation. Data elements can save the cost of other elements such as capital and labor, promote intelligent production. (4) Market innovation. The digital transformation can satisfy the needs of an existing market, and create new markets by precise pricing and marketing. (5) Organization innovation. Digital platform connects firm with external entities at low cost, makes the boundaries of different entities appear flexible. Finally, this study proposes that it is necessary to strengthen the theoretical framework and system monitoring research of the national digital innovation development economic system, explore the policy construction of the digital innovation development economic system that responds to the needs of development transition. This article analyzes the compositions, driving forces, and value creation paths of digital innovation development economic system, enriches the theoretical discussion of innovation development economic system and sheds light on how digital transformation shapes innovation and economic development.

Key words: digital transformation, innovation development, economic system, digital technology, value creation

 

Author: Kang Jin, Chen Kaihua

Author: Institute of Science and Technology Strategy Consulting, Chinese Academy of Sciences

The full text has been published in Scientific Research Management, Issue 4, 2021.

Key words:

Partners

See more>