| Propelled by the economic, science and technology globalization, as the most important science and technology activity, R&D has gone further in its depth and dimension with organization of R&D more optimized, the division of labor more specialized and R&D turning increasingly commercialized. R&D industry is not only an academic concept but also an emerging industry in the realistic economy. A thorough study on the R&D industry from the perspective of industrial economy, with discovering and revealing the formation of R&D industry as well as the inherent law of its development will be of benefit to deepening the theoretical research in R&D industry, to improvement of R&D industry management and to promoting the advancement of R&D industry. It is of important realistic significance to take leading role of R&D industry in adjusting the industrial structure and particularly to promote the development of China's R&D industry and hasten the transformation of China from a country rich in S&T resources into a country with powerful S&T.This paper conducted research in the following three aspects: firstly, the formation of R&D industry; secondly, the R&D industry and thirdly, the development of China's R&D industry. Based on the research reports from home and abroad, starting with the R&D activities, analyses are made on the implications and cause of the R&D industry with commercial R&D, the core of R&D industry, as the focus; a summary is made on the scale, main features and impact factors of R&D industry. Then, analysis is made on the major players of the R&D industry and their games; the paper describes the industry equilibrium achieved through the dynamic gaming in the R&D industry, establishes the industry growth model on the basis of R&D industry and summarizes the development trend and major problems faced by the R&D industry. The paper also analyses the roles of different players in the management of R&D industry and what the core of R&D industry management. At last, based on the inspection on the status-quo of China's R&D industry development and conducts SWOT analysis, this paper puts forward the overall strategies, strategic tasks and arrangement by stage for the development of China's R&D industry, outlines the roadmap of development and finally proposes solutions.The major conclusions of this paper are that R&D industry is a product of R&D activities; technology, demand and competition are the major driving mechanism for the formation of R&D industry; the R&D industry is a industry that mainly produces non-material outputs like technology and knowledge. The output of this industry provides powerful tools and means for other industries; R&D industry has been on a suitable scale, the suppliers and demanders play dynamic games in the commercial R&D activities and through various R&D strategies finally reached equilibrium in supply and demand by the price of R&D product; the existence of R&D industry will have positive impacts not only on the promotion of the R&D activities but also on the adjustment and upgrade of industrial structure and, as a result, promoting the economic growth. The major problems faced by the R&D industry in its future development are IPR protection, reducing technical barriers, promoting the sharing of information resources and scientific instruments, establishment and improvement of evaluation system and dealing with relationship between the host country and home country of multi-national companies; talents, patents and technical standards are the core of the management of R&D industry; Developing R&D industry is the core of building Chinese National Innovation Systems, the strategic tasks of the development of China's R&D industry are to clearly define status-quo, foster favorable environment, improve organization, optimize mechanism and promote collaboration.This paper ends with some issues that deserve further research, including the division of R&D industry and statistics, the quantitative analysis of R&D industry impact, and the market analysis of R&D industry.
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