The Optimal Allocation Of R&D Resources In Imitation And Innovation In Technological Progress

The paper analyzes the status of technological progress of China to show the main mode of China's technological progress. For a long time, our technological progress mainly relies on importing foreign technology, but lack in the ability to assimilate the imported technology. In recent years, though the R&D input is increasing year by year, compared to the developed countries, the total input and the proportion it accounts for GDP is still lower. The shortage of R&D input is an important reason of China's lack in innovation ability. Based on China's conditions, it concludes that we should adopt the technological progress mode which combines imitation and innovation. Under the assumption that technology progress is the result of the combination of innovation and imitation, and that the R&D resource is limited, the paper extends the R&D based endogenous model to analyze the optimal per-capita physical capital in imitation and innovation, the optimal allocation of R&D capital between imitation and innovation, and the determinant factors of technological progress. The equilibrium result shows that technology gap and the relative efficiency between imitation and innovation determines that optimal allocation of R&D resources, and that the optimal technological progress rate is related to technology gap, the high-tech human resource, the per-capita physical capital and the domestic knowledge absorbency. Then, based on the analysis of the model, an empirical model is set up to analyze the critical factors which affect the progress of technology in China, using the panel data of ten provinces. At last, some suggestion about technological progress is put forward.