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On the Interacting Mechanism between Firm' s Technological and Institutional Innovation

This paper aims at to analyze the condition, internal cause and mechanism of interaction between the firm's technological innovation and institutional innovation.It shows that the condition of the formation of such a interaction between technological innovation and institutional innovation is that the firm is provided by society with sufficient incentives and space to innovate, whereas the internal source of interaction is that the firm has to become both the subject of technological innovation and of institutional innovation.