Research On The Relationship Between R&D Activity And Economic Growth In China

With the advent of knowledge economy age，technological progress and innovation hadbecome the core factor to promote economic growth and comprehensive national power. Inparticular, our country had experienced more than30years of high-speed economic growth,obtained worldwide attention, at the same time also faced the problem of inharmonious, unstabitilyand unsustainable. The contradictions and problems in the economic development continueslydeepening, the extensive economic growth mode was difficultly to be continued.We need to realizethat it is quite important to find new economic point of growth through technological progress andinnovation. Technological progress and innovation relies heavily on R&D activity. It has a strongpractical significance to study on the relationship between R&D activity and economic growthFirstly, the paper introduced the background of the topic, the meaning of the study, the researchstatus of domestic and foreign.It also defined and described the related concepts and theories ofR&D activity and economic growth.Secondly, it analysed the status of R&D activity and economic growth in China.The resultsshow that the R&D inputs and outputs are increasing, but compared with the innovative country,our country’ R&D input intensity is still in a low state. From R&D resource allocation structure,enterprises had become the subject of R&D activity.Thirdly, based on VAR model, this paper analysed the relationship between R&D inputs andeconomic growth. The results show that there existed some long-term and stable relationshipsbetween R&D input and economic growth. R&D personnel input has a significant role in promotingeconomic growth in the short term.R&D Expenditure input also can promote economic growth, butthe effect can’t appear until the4th year and it lasted for a long time. Variance analysis results showthat the contribution rate of R&D input to economic growth is small.Forthly, based on the regional level data, used DEA-Malmquist index model, the paperestimated R&D activity efficiency, and further analysed the relationship between the efficiency ofR&D activity change and economic growth. Results show that R&D activity of high efficiency ofthe region’s economic growth rate higher than the low efficiency of R&D activity, which region hashigher R&D input intensity has higher R&D activity efficiency. Same regions’ R&D input intensityis low, restricted the improving of theirs R&D activity efficiency, and thus affected the sustainablegrowth of the economy.Finally, according to the empirical study conclusion, the paper pointed out the existing problems in R&D activity and economic growth in China and gave corresponding suggestions forimprovement.