The Empirical Analysis On R&D Input And Economic Growth Of Hubei Province

Science and technology are the first productive force, technological resources is extremely important strategic resources, after entering the21st century era of knowledge economy and information technology, national competitiveness is no longer simply for resources, science and technology has become the important factor in promoting economic growth, competition between China and other countries also has become the science and technology, around the world, it is obvious that those countries or regions with international competitive power are all highly developed in science and technology. In recent years, with the rapid economic development in Hubei province, its GDP increased from563.32billion in2004to2.225trillion in2012, growth has averaged18.73%a year, but this kind of economic growth is largely depend on the factors of production and labor investment and expansion, the extensive growth pattern will bring more and more problems, such as the lack of resource, environment pollution and so on, which will become a serious obstacle to keep the economic sustainable development of Hubei province, so utilize the science and technology innovation to transform the economic development patterns has become a top priority, R&D is the source of technological innovation, innovation require R&D activities, the scale and structure of R&D input directly affects the development of regional economy and the improvement of competitiveness.Firstly, on the basis of systematically analyzing the strength and structure of R&D investment and the current economic situation in Hubei province, it will find the problem existing in R&D investment, personnel investment, structure of investment, second, the empirical analysis in Hubei is made. Based on the data regarding the R&D investment and economic growth in1998-2011, adopting cointegration test to analyze the relationship between R&D input and economic growth and set up the error correction model between them, revealing the dynamic equilibrium relationship between R&D input and economic growth, then examined the granger causality between them. In the empirical analysis of the allocation of R&D investment and economic growth, using gray relational degree method to analyze the relationship between the two by type of activity, execution of the main structure and source of R&D input based on the data of2004-2011, the results indicate in three different categories, basic research, higher education institutions and Government funds have the stronger associate with economic growth, which have more apparent effect in promoting the economic growth, at last, some suggestions are put forward for Hubei how to increase R&D input for driving its economy development, such as strengthened R&D investment, increase government financial input, optimize the structure of R&D and so on.