ABSTRACT Technical innovation is the power and resource for the sustainable and healthy development of enterprises, and is re- lated to the improvement of social productivity and the establishment and improvement of national innovation system. Technical innovation is the process of the enterprise using the original knowledge and transforming it into new tech- nology. The input and output of knowledge of (i.e., creating new technology) presents S curve, experiencing the stage of imitating type, fusion type and original type, which is subjected to the synergistic action of institutional arrangements factor and its operating factors. Through the analysis of evolution mechanism of different stages of technological inno- vation stages, this paper verifies the rationality and scientific nature of the theoretical assumptions.
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