RESEARCH OF LOCAL GOVERNMENT BEHAVIOR IN ECO-TECHNOLOGICAL INNOVATION PROCESS

Abstract

The formation of Eco-technological Innovation comes from the rational introspect of conflicts between economy growth and destruction of ecosystem in traditional technology innovation. By considering the mutual relations and interactions, the innovation regards economic activities, natural ecosystem, social ecosystem and spiritual ecosystem of human as an organic system, at the same time considers the mutual relations and interactions of them. In order to make technological innovation good for environmental protection, healthy existence of human as well as social harmony, the innovation, it takes the protection and reconstruction of natural ecosystem as premise and the harmonious development of economic social ecosystem as the target. This thesis begins from the economics characteristics analysis of enterprise eco-technological innovation and discusses the Characteristics of Sunk Cost, Externality and Public Goods in the process of eco-technological innovation. Market failure exists in consequence and the solution is the guidance and support from all levels of government. The thesis substitutes the Multiple Target Function of Local Government into Cournot Equilibrium and Beicrand Equilibrium to study how the local government behaviors can influence the enterprise eco-technological innovation process.
Key words: Economic Behavior, Eco-technological Innovation, Local Government Behavior, Coevolution