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The theory of innovation and its application in China

This paper introduces the different views of innovation and expatiates on the national/ sub-national innovation system, including the basic functions, characteristics and models of the national/sub-national innovation systems. A mathematic model of an innovation system is brought forward. Then the innovation system is analyzed with the method of system dynamics. And two causal loop diagrams are given the with cases study of the university sub-system and enterprise sub-system in the innovation system. Besides, the evaluation of innovation system is discussed. Finally, the application of innovation theory in China is introduced, which includes the development of national innovation system and the sub-national innovation systems in The Pan-Pearl River Delta Area, Yangtze River Delta Area and Bo-hai Sea Rim Area. The authors also give some suggestions on construction innovation system.