Relationship Of R & D Funds Investment And Economic Growth

In twenty-first Century, with the deepening global economic integration and thedevelopment of electronic information technology, governments around the worldare thinking of new economic development strategy. Innovation has become the keyfor an enterprise，even a country remaining invincible in the competition. China isthe largest developing country in the world. if we want to maintain stable and rapideconomic development, improve our international competitiveness, occupy a spacein the international market, we must pay attention to the progress of science andtechnology, pay attention to the innovation, building an innovation oriented country,while in the process of building an innovation oriented country, research anddevelopment (R&D) activities is in the core position.This paper studied the relationship between the R&D input and economic growthfrom the scale of the R&D input, investment structure and regional differences.From the scale of the R&D input, China’s investment in R&D input intensity andhuman resources are insufficient compared with the developed countries. Using cointegration analysis and Grainger causality test, found that R&D investment has arole in promoting economic development, but the coefficient of elasticity is smallerthan America; From the structure of R&D funds, mainly using the grey correlationanalysis studied the structure of R&D in China and USA. This paper found thatalthough the improvement is huge, there are still some problems in our country;From regional differences, the relationship between R&D investment and economicgrowth in China’s provinces was analyzed by Panel Data model, and the R&Dregional provinces city into the clustering analysis, found the R&D funds invested tolarge cities is not efficient enough, and the coefficient of elasticity is not bigger. Sowe should put forward various suggestions according to the situation of differentarea.