An Empirical Study Of The R&D Investment And Economic Growth In Inner Mongolia

In the knowledge era, it is well-known that science and technology are primary productive forces. The level of science and technology is often referred to the degree of the competitiveness of a country (or region). Many regions are continuously increasing R&D investments in order to boost the development of local technology. Similarly, China has also proposed a new principal national policy, technology and education, based on which Inner Mongolia specifically announces the new strategy for developing an innovative Inner Mongolia. However, many issues emerge during the implementations in our region, such as insufficient investments, irrational investment structure, etc.In this work, we investigate the correlation between investment in R&D and economic growth using both qualitative and quantitative methods. We systematically analyze the current economic situation, the R&D investments, the strength and structure of the investment. A comparison with other regions is made subsequently. Experiments are conducted based on the data regarding the investments and economic improvements in1996-2010, adopting the unit test and co-variation test. Besides, software Eviews6.0is utilized to apply a time series analysis. The results indicate that actions to enhance the R&D investments and optimize the investment structures should be taken in order to maintain and boost the development of economy in our region.