Study Of Knowledge Production Of Industries In An Open Economy

This article studies relationship between knowledge production and the absorptive capacity of Chinese industries under the framework of endogenous growth theory, that is to say the mechanism and affects of different dimensions of absorptive capacity has been investigated under open conditions. And combining with the theoretical model, the author has analyzed the knowledge production function of 20 Chinese industries empirically, using panel data and threshold model. On these bases, a further research, from theoretically and empirically, has been carried out to discuss the optimal ratio of R&D with the conditions of open economy. Through the above analysis, this paper obtaines the following conclusions:The theoretical analysis and empirical study showes that:(1) human capital accumulation exertes positive impacts on economic growth and technological progress. (2) The linkage between knowledge gaps and technological progress and economic growth is murky, the discrepancy of human capital, technology matching degree and other factors may lead to a huge different one. (3) The policies, which are endogenous and determined by the human capital structure and other factors, would be effective only if the efficiency of innovation has beyond a certain threshold value. And also it can obtain, from the yield of empirical, that the optimal ratio of R&D investment of the sample industries are 2.704115%,1.465457%,5.552166% and 11.0202%, corresponding to the four kinds of absorptive capacity, and there is no threshold effect to absorptive capacity1 and absorptive capacity2, while, three thresholds to absorptive capacity3 and one to absorptive capacity4,0.1060%, 0.2422%,0.4306% and 0.0886% respectively. And the mean of actual R & D expenditures of 20 samples industrial, within 12 years from 1995 to 2006, was 0.7622976%, exceeding the threshold under open conditions, which means that all the industries already have surpassed the minimum of R & D investment levels after 30 years of opening and accumulation, but was far lower to the optimization. When it came to Sub-industries, corresponding to different indicators, the optimal R&D investment would be heterogenous, and the empirical results showed the coexistence of the long term shortage and waste of R & D investment in Chinese industries.