超大规模市场优势下技术创新对企业市场势力的影响OACHSSCD

Against the backdrop of incremental demand in China's super-large-scale market with huge potential from its 1.4 billion population,this paper investigates the effect of technological innovation on enterprise market power theoretically and empirically.In line with the strategic orientation of technological innovation in China's eco-nomic and social development,this paper responds to the practical needs of innovation-driven growth,as enterpri-ses contributed 64.4%of China's invention patent applications in 2022. Using a matched dataset of more than 700,000 invention patents from Chinese listed firms and the National In-tellectual Property Administration from 2010 to 2021,this paper finds that technological innovation significantly re-duces enterprise market power.The mechanism is that innovation improves firms'revenue while generating positive spillovers to industry peers,and its impact on individual firms outweighs the impact on the industry average,en-couraging enterprises to innovate even at the cost of lower market power for higher relative returns.This result chal-lenges the traditional three-stage model and the view of Nordhaus(1969),indicating that monopolistic profits are not a necessary condition for corporate innovation.Heterogeneity tests show that the negative effect is stronger in follower firms,non-state-owned enterprises,and non-exporting enterprises,which operate in more competitive do-mestic markets with stronger demand.Using large language models to classify product and process innovation from patent texts,this paper finds that product innovation exerts a stronger and more significant negative effect on market power due to larger technology spillovers,while process innovation has no significant effect.Product innovation boosts industry-wide revenue growth,whereas process innovation generates limited spillovers.These findings reflect the unique benefits of China's super-large-scale market,which supports a virtuous industrial cycle and extends in-dustry growth. This paper's contributions lie in clarifying the mechanism by which innovation reduces market power,and u-sing large language models to categorize innovation from 700,000 Chinese patents.Based on the conclusions,this paper proposes policy implications in three areas:optimizing industrial policies,refining differentiated innovation incentives,and supporting innovative enterprises to expand globally,thereby fully utilizing the super-large-scale market and advancing high-quality economic development.