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Growth Volatility Research On Government’s Investment In Science And Technology And Innovation Output

Posted on:2014-04-01Degree:MasterType:Thesis
Country:ChinaCandidate:T LiuFull Text:PDF
GTID:2269330425492352Subject:Business management
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With the scientific and technological activities playing an increasingly important role in increasing one country’s economic strength as well as improving comprehensive national strength, more and more countries begin to recognize scientific and technological activities, including a focus on innovation in science and technology. Therefore, many countries, including developed countries have begun to put the focus on this field gradually. During the rapid economic developing stage, the US-led countries, including Japan and South Korea governments’ strategic investment in science and technology have been rewarded. We can also find that government reflects a decisive role in scientific and technological activities. And China’s investment in science and technology system has been largely influenced by political system and the existing economic system, so our country’s investment in science and technology is typical of government-led. However, due to Chinese government’s investment system in science and technology is imperfect, scientific and technological innovation has a seriously problem of inefficiency. Many scholars have done a lot of research from perspective of government’s investment in science and technology and innovation output, and made many valuable comments and suggestions combined with current situation; however, it still seems to be difficult to explain the low efficiency of technological innovation problems. Therefore, this paper gets out of the traditional research on the government’s investment in science and technology and innovation output, and we discuss from the perspective of growth volatility on government’s investment in science and technology and innovation output.In this paper, we carefully comb and analysis existing literature, and then we deeply analysis government’s investment in science and technology and innovation output. In this paper, we build a model of economic incentives composed by the central government, local governments, and universities and research institutes; According to optimal collusion-proof contract, we build three contracts, including government’s investment in science and technology optimal contract, government’s investment in science and technology contract when innovation output growth performance decreased, and government’s investment in science and technology contract when innovation output growth performance don’t decreased; on this basis, we put forward the propositions and prove them; then we put forward the asymmetry hypothesis about growth volatility between government’s investment in science and technology and innovation output; finally we introduce STR model to test our hypothesis, which has been maturely applied in the macroeconomic field. The results show that growth volatility of government’s investment in science and technology result from imperfect system is the major cause of innovation output inefficiency. This volatility has seriously hampered sustained and stable growth of innovation output. This effect cannot be completely solved by increasing government’s investment in science and technology effort after performance of innovation output growth falling.In this paper, we make recommendations about government’s investment in science and technology based on the further analysis of the study results. This article pointed out that to solve the problem of insufficient of innovation output, namely keeping steady growth of innovation ability, the fundamental way out is continuing to reform government’s investment in science and technology research institutes. Finally, we reflect the limitations of this study and looking ahead research directions.
Keywords/Search Tags:Government’s Investment in Science and Technology, InnovationOutput, Growth Volatility, STR Model
PDF Full Text Request
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