Research On The Allocation Of R&D Resource And Total Factor Productivity Improvement In China

As the role of factor-driven economic growth is diminishing,increasing production efficiency is critical to China's successful economic transformation and sustained economic growth.R&D activities have been widely concerned by economists and policy makers as an important source of TFP.However,China is facing an embarrassing situation that is the rapid increase in R&D investment and TFP growth slowdown or even decline at this stage,because of R&D resource allocation is inefficient.And invalid R&D inputs not only causing waste of resources,but also inhibiting production efficiency and economic growth.Therefore,in addition to increasing the scale of R&D investment,the more important thing is to consider how to improve R&D resource allocation efficiency.However,most of existing literature focuses on the relationship between R&D inputs and TFP,but ignores the effect of R&D resource reallocation on TFP.Therefore,this paper studies the issue of TFP improvement from the perspective of R&D resource allocation.In general,the article focuses on four aspects: Firstly,the paper explores the R&D resource allocation mechanism based on the micro perspective,and analyzes the influence of R&D resources across enterprise configuration on TFP growth.Secondly,the efficiency and evolution trend of R&D resource allocation in China is measured from the meso level,and the loss of TFP in the manufacturing sector caused by distortions in R&D resource allocation is estimated.Thirdly,we use spatial metrology to analyze the spatial arrangement of R&D resources and its effect on regional TFP growth difference.Finally,we discuss the effect of government intervention in the process of R&D resource allocation and the resulting change in productivity.The main research contents and related conclusions are as follows.(1)Exploring the micro-mechanism of R&D resource allocation from the differentiated R&D behavior of enterprises,and assessing the contribution of R&D allocation among enterprises to TFP growth.This paper introduces the heterogeneity of enterprise productivity into the R&D endogenous economic growth model to examine the internal decision mechanism of R&D activities of different productivity enterprises.The results found that productivity differences inspire firms to enter or exit R&D activities,and the impact of productivity on corporate R&D behavior shows a threshold effect.Only when the enterprise productivity is greater than a certain threshold,they will choose to be engaged in R&D activities;otherwise,the firm will exit R&D activities.Further,taking into account the fact that Chinese government has more administrative intervention and control in R&D activities,the article introduces policy system constraints in the model to see how policy distortions affect R&D decision-making and investment behavior of the firm.The results show that an effective policy system is conducive to reducing the threshold of productivity of R&D activities,thereby strengthen the incentive effect of productivity on R&D investment.And then the pape uses the dynamic OP covariance decomposition method combined with China's micro-enterprise data to analyze the impact of R&D resources across enterprise allocation on the TFP changes,founding that there is a serious distortion about allocation of R&D resources across the enterprise.Whether the R&D resources flow among the reputable enterprises or the enterprise turnover in the R& D activities inhibit the growth of the TFP.(2)Measuring the efficiency and its changing trend of R&D resource allocation within the industry and inter-industry,and identifying the evolution path and source of R&D resource mismatch in China.The paper estimates the mismatch between R&D resources in the industry by measuring the covariance between the industry productivity and the R&D resource share.The results show that China's R&D resource allocation is showing a worsening trend but the deterioration rate gradually slowed down,and inter-industry R&D resource mismatch is the main source of deterioration in allocation efficiency and TFP decline.Furthermore,we use the kernel density grapth to describe the productivity distribution and R&D inputs across the industry.Found that China's industry productivity showed a fluctuation downward trend,and productivity gap of different industries experienced from the process of divergence to concentration,and presents a polarization of the high productivity region and the low productivity region.R&D resources are mainly concentrated in a small number of industries,and this uneven gap is expanding.R&D resource allocation efficiency and industry characteristics are closely linked.Light industry R&D resource allocation efficiency is generally high,but heavy industry R&D resource allocation inefficient.In addition to,R&D resource allocation efficiency of processing and manufacturing is moving in the direction of optimization,but R&D resource allocation efficiency of equipment manufacturing industry shows a trend of accelerated deterioration.(3)This paper unifies the spatial correlation between the R&D resource allocation structure between the various innovation bodies within the region and the dynamic flow of R&D resources among the regional,to reveal the spatial allocation of R&D resources and its impact on the growth of regional TFP.Global spatial autocorrelation analysis and local spatial autocorrelation analysis are used to investigate the spatial correlation of R&D activities and TFP growth in each province.Spatial autocorrelation test found that China's TFP growth and R&D resources show spatial positive correlation and club clustering characteristics,and TFP growth and R&D activities in the eastern provinces are located in the H-H club,the western province belongs to the L-L club,most of the central region is in the L-H club or H-L club.The paper uses the panel data space measurement model to test the influence of R&D resource allocation structure within the region on TFP growth,and the results show that the increase in R&D expenditure of research institutions is more conducive to the growth of regional TFP than R&D expenditure in enterprises and colleges and universities.Further,we explore the influence of the spatial re-allocation effect of R&D resources on regional TFP changes caused by the inter-regional flow of R&D capital and R&D personnel.It is found that the cross-regional flow of R&D recourses has a significant effect on regional TFP growth,and the effect of R&D personnel is relatively stronger than R&D capital.(4)This paper analyzes the effect of government subsidy on R&D resource allocation and its effect on the improvement of TFP.The paper builds up a dynamic game model between enterprises and policy makers under the condition of asymmetric information,trying to depict the signal transmission strategy of the enterprise to obtain the government R&D subsidy,and the government's optimal action in the face of the strategic behavior of different enterprises,so as to analyze the mechanism of government subsidy on R&D resource allocation.The study shows that there is a reasonable range of government R&D subsidies,when the subsidy exceeds a certain threshold,it will induce enterprises to pass false signals to cheat government R&D subsidies,resulting in R&D resource mismatch.And the process is subject to the intellectual property protection system.The perfection of intellectual property protection system can increase the cost of false signal transmission,and enhance the threshold of rent-seeking activities,then optimize the R&D resource allocation.Subsequently,the PSTR model was used to test the non-linear relationship between government subsidies and TFP growth with different intensities,the results show that the R&D subsidies of local governments significantly inhibit the growth of regional TFP,and with the subsidy intensity from low to high level of development,this inhibition is gradually enhanced.The results indicate that government subsidy leads to mismatch of R&D resources.Finally,the article utilizes the mediation effect model to reveal how the government R&D investment changes the regional TFP growth by influencing R&D resource allocation,and finds that there is a conduction process of "government R&D resources investment ? corporate rent-seeking?R&D resource mismatch?TFP decline".