The Impact Of Government R&D Subsidy On Technological Innovation

Technological innovation is generally considered to be the most important support to achieve economic growth,industrial upgrading and enhance the core competenceof a country and region.The contradictions because of long term dependence on investment and export driven have increasingly become the bottleneck of China's sustained and stable economic growth.Whether it is the realization of economic growth from extensive pattern to intensive patternor the adjustment of industrial structure,its important driving force lies intechnological innovation.How to effectively play the role of the government in promoting technological innovation is an important issue to achieveinnovation driven development strategy.Technological innovation has the characteristics of public goods and uncertainty,so that the technological innovation provided by the private sector may be lower than the social optimum level,and there is a market failure.It is a common practice for the governments to rectify market failure by using of fiscal funds to guide and encourage the whole society to increase investment in technological innovation.Based on the practical background and theoretical research needed,this paper proposed the research topic of the impact of government R&D subsidy on technological innovation.Using thepanel data ofChina mainland 31 provinces from 2009 to 2014,this paper expounds the characteristics of the development of government R&D subsidy and technological innovation in China,investigates the effects of government R&D subsidy on technological innovation,including the effect degree,form and spatial.This paper consists of seven chapters:the first chapter is introduction;the second chapter is the theoretical foundation and literature review,describes the theoretical foundation of the impact of government R&D subsidies on technological innovation,andsummarizes the related literaturefrom theaspects of theoretical research and empirical research;the third chapter reveals the general,inter provincial and regional development process and present situation of governmentR&D subsidy and technology innovation;the fourth chapter,the fifth chapter and the sixth chapter respectivelymultilevelinvestigate the dynamic,spatial and nonlinear effectsof the government R&D subsidy on technological innovation;the seventh chapter summarizes the whole paper and future study is prospected.Based on the theoretical analysis,the specific conclusions and implementation process of empirical research are as follows:First,the government R&D subsidy and technological innovation are showing growth trends,there are certain differences between different provinces and regions.The statistical analysis showed thatgovernment R&D subsidytends to invest in research and developmentinstitutions,different provinceshave different invest tendencies between industrial enterprises above designated size,research and developmentinstitution and university,the eastern region is higher than the level of the central and western regionsin general.The whole technological innovationindexes the patent application number and technology market contract turnover showed a growth trend,industrial enterprises above designated size,research and developmentinstitution and university technology innovationindex the patent applicationnumber has an increasing tendency,and the level of the eastern region is higher than the level of the central region and the western region;industrial enterprises above designated sizetechnological innovation index new product sale revenue showed a sustained growth trend,and the level of the eastern region is higher than the level of the central region and the western region,the gap is widening,while research and development institution and university technology innovation index patent transfer the possession income presents fluctuation,the difference between eastern,centraland western regions is not stable.Second,government R&D subsidy has significant effect on technological innovation.Using the whole government R&D subsidy and the technological innovation panel data,wheather technological innovation index is patent applications number or technology market contract turnover,the results of dynamic panel estimation,spatial panel estimation and panel threshold estimation show that government R&D subsidy has a significant effect on technological innovation.Further distinguish the effect of government R&D subsidy on technological innovation between industrial enterprises above designated size,research and developmentinstitution and university,the results of dynamic panel estimation,spatial panel estimation and panel threshold estimation also show that government R&D subsidy has a significant effect on technological innovation index patent application number.China's government R&D subsidy policy got certain performance.Third,the effect of government R&D subsidy on technological innovationeconomic valuetransformation degree indexis limited.When take technological innovation economic valuetransformation degree indexes new product sales revenue orpatent transfer the possession incomeas the explanatory variables,the results show that he government R&D subsidy of research and development institution and universitydo not show a significant effect in the dynamic panel estimates;Furtherunder the dual constraints,the effect of government R&D subsidy on technological innovationeconomic value transformation degree index is still notsignificant.In spatial panel estimation,the effect of government R&D subsidy on technological innovation economic value transformation degree indexis still not appearance.Fourth,the space spillover effect of government R&D subsidy on technological innovation is limited,the role ofenhanceoverall picturetechnology innovation needs to be improved.With constructing the spatial panel model,in the space spillover effect estimate results of the whole sample,different sectors,sectors and region dual constraints,just the government R&D subsidy of eastern region university technology innovation index patent application number,central region and western regionindustrial enterprises above designated sizetechnology innovation index new product sales revenue have significant spatial spillover effect,The results of other samples show no significant positive spillover effect.Fifth,government R&D subsidy has a significant threshold effect on technological innovation,and there is no inverted U influence form.The whole sample threshold estimation results show that,regardless of takepatent applicationnumber or technology market contract turnover as explained variable,government R&D subsidyhas a significant positive effect on technology innovation,and has a significant threshold effect,there is no inverted Uinfluence formor acrowding out effect.The further threshold effect estimatesresults inindustrial enterprises above designated size,research and development institution and universityindicate,under the technological innovation index patent applications number,government R&D subsidy has a nonlinear influence on technological innovation,part of the samples appearsthat with the subsidy scale changed from low to high,the incentive effectpresent trends from nosignificant to significant and small effectto great effect.The conclusions of this paper can provide empirical support for the theory,enrich the existing research results,provide a reference for the development of our country government R&D subsidy policy,and help in the economic development of our country,andbeneftin the the goal that achieveeconomic growth from extensive pattern to intensive pattern and innovative country building.