Market Power Formation by Product, Market Innovation and Differentiation

Because of the lack of market power and innovation, Chinese exporters face the situation of "increased quantity but reduced price". This dissertation points out the mechanism to enhance market power and achieve the positive feedback of technology and market environment by depending on product & market innovation and differentiated competition targeting at asymmetrical market demand. It also analyzes the enlightening of this mechanism and suggests Chinese enterprises figure out the markets that are not fully tapped but within their abilities to get over the lateral competition with differentiation based on market and product innovation.