The impact of innovation & entrepreneurship on the structural updating for certain industry based on empirical analysis

During the COVID-19, the recovery of the world economy is facing a severe challenge. Specifically, a revolution in science and technology is developing in depth and due to the change of global economic industrial transformations are taking place gradually. For the sake of analyzing the effects of innovation and entrepreneurship on the upgrading of industrial structure (UIS), this study uses the data of the number of scientific and technological achievements, fiscal expenditure and industrial structure in China from 1995 to 2019 were selected as the research variables. Besides, the correlation between variables was analyzed based on vector autoregressive model (VAR), Johanse cointegration test, VECM, and also impulse response analysis. Empirical analysis indicates that a long-term equilibrium relationship exists between innovation and entrepreneurship, fiscal expenditure and the upgrading process. Innovation and entrepreneurship and fiscal expenditure have a positive effect in promoting the structure. These discussions shed light on guiding further exploration of guiding the main path break-throughs and policy management in the new era.