System Competition,Network Effects and Government Roles in the Early Time of the Industry Development:Evidences of Color TV Industry in(1978～2002)

When we discover the development mechanism of the color TV industry in China in 1978~2002,there are some new findings that the most important source of success of development is government policy under system competition context,which is free entry,improving product quality on hardware side,and repairing if buying in all over the country on software side,and the create the indirect network effect to attain success.Further more,the logic of CTV industry development demonstrates that economic comparative advantage,importing technology lead to industry development,developing countries insist indigenous innovation to acquire industry development success,and wealth created by market growth.