Enterprise Industrial Structure Transformation and Upgrading and Regional Innovation Capability Enhancement Strategies - An Empirical Analysis Based on VAR Models

The transformation and upgrading of enterprise industrial structure and regional innovation ability are the concerns of social development in recent years. This paper introduces the global entropy method and VAR model to construct the indicators of enterprises’ industrial structure transformation and upgrading and regional innovation ability with the enterprises in X place as samples. The development level is measured through weight calculation and comprehensive evaluation, and after the smoothness test, the impulse response function and variance decomposition are applied to study the dynamic relationship between the two variables, to research the transformation and upgrading of enterprise industrial structure and the enhancement of regional innovation capacity. The study shows that the level of industrial structure transformation and upgrading of enterprises in the cities of X place has increased steadily from 2016 to 2020 as a whole, but only the level of the eastern cities is all over 0.3, which still needs to be further improved. Through the variance decomposition, the variance contribution rate of changes in regional innovation capacity to changes in the transformation and upgrading of enterprise industrial structure increases from 13% to 26.16%, and the variance contribution rate of changes in the transformation and upgrading of enterprise industrial structure to changes in regional innovation capacity decreases from 99.14% to 74.42%. The level of transformation and upgrading of the enterprise industrial structure can be improved to continuously promote the enhancement of regional innovation capacity and further promote the construction and development of the city. © 2023 Hongkai Cui, published by Sciendo.