The Empirical Study On The Role Of R&D Expenditure In Technological Innovation

This paper is derived from a subproject of my supervisor's major project of Hunan Provincial Science & Technology Department:A research on cooperation mechanism innovation of the pan-pearl river delta region (No.2009WK3003).Technological innovation is a powerful driving force to promote economic development in the 21st century. In the new century, technological innovation's position is more and more important besides capital, markets, resources competition. The levels of science and technology are uneven in Pan-PRD region. Guangdong is stronger than other provinces, which are in the low level. Yunnan and Guizhou provinces are lack of scientific and technological resources seriously. In the respect of scientific and technological inputs, the conditions of research infrastructure are still relatively backward, which obstruct the development of the region. In the respect of outputs, the efficiency is not high and technological innovation needs to be improved.It chooses 2000-2008 R&D spending and technological innovation panel data in Pan-PRD region. Then it studies the effects of R & D spending on technological innovation using statistical analysis software Eviews5.1. According to the results of the state of technological innovation divides it into three stages and studies R & D expenditure's influence to technological innovation.The three stages of technological innovation are differently promoted by R&D expenditure. The coefficient gradually increases in the three stages of technological innovation. Pan-Pearl River Delta region's technological innovation capability is uneven. It can be divided into three regions. Classâ… , areas of high R & D expenditures, high-tech innovation level regions, including Guangdong Province. Classâ…¡, middle-class in R&D expenditure and technological innovation, including Sichuan and Hunan. Classâ…¢, low level in R&D expenditure and technological innovation, including Guangxi, Guizhou, Hainan, Yunnan, Jiangxi, and Fujian. By regression analysis, it finds R & D expenditure's influences to technological innovation are different due to various phases and areas.Based on the analysis, this paper puts forward policy recommendations:increasing the R & D expenditures to promote the development of regional technological innovation; making good use of regional cooperation to realize the common development; establishing and improving a system of coordinated development to promote regional technological innovation capability; increasing government macro-control and optimizing the R&D policy and institutional environment; establishing a reasonable mechanism for the talent to strengthen innovational power, so as to give some reference to promote Pan-PRD region's technological innovation.