The Influence Of The R&D Devotion Upon The TFP Of Industry Department

Total factor productivity (TFP) means the ratio between total produce and general factordevotion. General factor devotion means some kinds of average in all the factor devotion(labor and capital). So the growth of TFP is the growth that all the factor devotion can'texplain. TFP can be said to generalized technique progress, the devotion of science andtechnology are a very important part that bring the technique progress.Research and Development (R&D) are the foundation of the science and technologyactivity. As some kind of devotion, the budget expends of R&D influence the developmentsituation of the economy deeply.First we use method to the industrial total factor productivity (TFP) of whole country andHebei and Jiangsu provinces (1995-2004). After 1999, all of TFP kept on a faster growth. Butcompare the whole country and Jiangsu province, the TFP index of Hebei is very smaller.Then the influence of R&D to the industrial TFP based on the regression model, the publicsection produced negative influence to the TFP, the R&D devotion of the business itself hadprominent exaltation. But the foreign technique was not any prominent result;we analyzedthe reason of this condition. At last contrasting Hebei and Jiangsu province the differentinfluence if R&D expends to industrial TFP, we did the simple conclusion and suggestion.