The Knowledge Production Function’s Analysis On The Base Of The R&D Capital Stock

Since1978’s reform and opening-up policy of China, the county’s economicdevelopment got a rapid growth. On the reasons for China’s rapid economic growth, eachscholar gives a different explanation, which is from a different point of view, such as factorinputs theory, structure theory, demand theory, policy theory, technology theory, and so on. Asan important means to increase the gap between social progress of modern social-economicgrowth, the science and technology investment plays a more and more obvious role in theeconomic growth.On the base of the U.S. BEA’s experience of the R&D capital stock estimate, this articleestimates the national and regional R&D capital stock with the perpetual inventory method tofind that China’s total R&D input increases year by year, while regional R&D input isdifferent from each other. Secondly, on the combination of knowledge production functiontheory, using the panel data of different regional medium-sized industrial enterprises’ R&Dactivities, and the production function in a form of Cobb-Douglas, the paper uses the R&Doutput as the dependent variable, while the R&D capital input, R&D personnel input andother controllable variables as independent variables, to build the knowledge productionfunction model suitable for China’s current situation. Finally, on the base of the modelanalysis, the paper analyzes the R&D activities of China’s present situation, and finds thatR&D personnel input’s contribution rate on R&D output is stronger than R&D capital input,while other controllable variables get a different contribution rate on R&D output.Based on the analysis of Knowledge production function model of R&D activities, thisarticle finds that the shortcomings of the present stage of China’s R&D activities, andproposes a series of recommendations, such as improving our R&D capital stock distributionscale, increasing the national education reform efforts, strengthening the establishment andmanagement of business incentives and performance mechanism, and so on.