Empirical Study on Technological Innovation and Market Performance in Domestic Circulation Industry

Based on the data of 1994-2007, this article establishes the evaluation index system about market performance in domestic circulation industry and obtains the market performance factor of circulation industry by means of factor analysis. Then the article sets up the state space model and multivariate regression model for empirical study, where the market performance is a dependent variable and the level of human capital and technological innovation are independent variables. It is found that technical innovation has improved the market performance in domestic circulation industry, and human capital and R&D funding have a greater positive effect on the improvement of circulation industrial market performance, of which the level of human capital is more important. Regarding this, corresponding proposals are put forward.