Public R&D And Endogenous Growth

With the development of contemporary science and technology, single corporation cannot integrate local or countrywide resources and bring forward national technical innovation, and thus original technical innovation model that regards only corporations as innovation subject has been changed radically. Nowadays the government takes more and more important part in integrating resources of all fields and putting forward technical innovation. Especially since 1990s, communication revolution has been accelerating global economic, scientific and technical integration. Although corporations' international competition decides national competitive competence, governmental part is also the key factor. So the new function of governmental public R&D policy is to enhance national competitive competence and promote economic growth.Yet among theoretical research, both technical innovation theory and endogenetic growth theory regard governmental public R&D as a supplement to rectify market failure. They mainly argue how to settle marker failure effectively, and hardly refer to functionary mechanism between governmental public R&D and economic growth. Only since early 1990s, a few western scholars have begun to do research on this problem.Nowadays China meets strategic opportunities, to enhance innovation competence independently and build an innovative nation is one of our strategies. Although we have constructed a multiplex R&D expenditure pattern including corporations and the government, governmental public R&D will still play an important part in a long time because of the limitation of corporation's scale. Therefore it is very pressing and significative to discover the functionary mechanism between governmental public R&D and economic growth, enhance the part of governmental public R&D in economic growth and improve independent innovation competence.This paper researches on the intrinsic relation between governmental public R&D and economic growth, assimilates the main thoughts of Aghion's & Howitt's (1998) Neo-Sebumpetertan endogenous growth model, introduces a variable—governmental...