System dynamic model of leading high-tech industry growth

This article constructs the model of dynamics of leading high-tech industry (LHTI) growth by system dynamic method. Then the article takes electronic and telecommunications equipment industry for empirical analysis. The results show that the dynamics of leading high-tech industry growth is a complex dynamic system including multiple cyclic feedbacks and synergistic effect of science and technology innovation, market demands, enterprises competitions and government behavior; the role of the government in LHTI's growth isn't regulating directly or promoting it but making good use of the synergistic effect of science and technology innovation, market demands and enterprises competitions with each other and with government itself; the adjustment keystone including loosen the government regulation, inspire the ability of independent innovation of enterprises, further increase the input of R&D and professional works' education, and show the specific way by making a decision game at last.