Empirical Analysis Of The Impact Of Public S&T Investment On Technological Innovation Of Large And Medium-sized Industrial

Science and technology are primary productive forces, companies want to survivein the21st century, make a development in the competitive market environment, toimprove their competitiveness, so business innovation can’t be separated. China todayhas to raise the enterprise independent innovation ability to enhance the level ofnational strategy. Due to technological innovation with the public nature of the productin the market, combined with market uncertainty, companies do not actively participatein technological innovation activities. This requires the government use "visible hand"to intervene to increase public investment in science and technology, encourageenterprises to carry out technological innovation. Medium-sized industrial enterprisesare the backbone of our national economy, they are in a dominant position in criticalareas and major sectors of the national economy and they play a decisive role on thewhole economic development. Therefore, the study of the impact of public investmentin science and technology and medium-sized industrial enterprises in technologicalinnovation to have a representative role in the national economyThis paper is on the base of building a metering model of input and output ofenterprise technology innovation， uses static and dynamic panel data of large andmedium-sized industrial enterprises in30provinces， municipalities and autonomousregions in China from2001to2011， empirically analyze the influence input of publicscience and technology on enterprise technology innovation.The result shows that， see from the whole country， government’s science andtechnology support has positive influence on enterprise technology innovation; Laggedtwo periods of public investment in science and technology enterprises has a positiveimpact on technological innovation output, and the benefits outweigh the laggedimpact of the benefits.This article conducts empirical study on the three major economic regions:eastern， central and western areas， the influence on enterprise technology innovationof input of public science and technology has a significant differences in eastern，central and western areas， the difference of influence on central areas is the largest， while it is the smallest on eastern areas. The result also shows that， the science andtechnology activities expenditure of enterprises themselves also significantly promotethe technological innovation output， the enterprises who have science and technologyactivities have a significant positive influence on technology innovation， while ineastern areas， the quantity of enterprises who have science and technology activitiesare significantly more than it in central and western areas that have a positive influenceon technology innovation; but the input on human capital in all the places has aadversely influence on technology innovation of enterprises. So the government shouldincrease the input in enterprise technology innovation and take appropriate measures toimprove the technology innovation ability of enterprises. Introduction of technologyexpenditures have a positive impact on patent applications, while have a moresignificant negative impact on new product sales.This paper presents policy recommendations for governments and enterprisesbased on the status and results of the empirical analysis. The government shouldincrease spending on public science and technology investment, optimize investmentstructure of public science and technology. Government should provide a conduciveenvironment for technological innovation, for continuous investment in technologicalinnovation.