The Research Of Government Guide Science And Technology Investment Mode Based On Externality Theory

Scientific and technological innovation is the accelerator to promote thedevelopment of productive forces, a comprehensive support system for scienceand technological investment is the key and premise to ensure that theaccomplishment of scientific and technological innovation. Government’sscience and technology investment is an important means to support scientificand technological innovation activities and to compensate for market failure,and it is of great significance for building scientific and technological innovationsystem, accelerating the transformation of scientific and technologicalachievements, promoting industrial restructuring and upgrading, facilitatingeconomic growth and social development. Many countries regard strengtheningscientific and technological innovation as a national strategy, and have exploreda variety of scientific and technological innovation investment mode.Firstly, this paper explains the concept and characteristic of governmentguide science and technology investment mode, reviews the current researches.And based on the externality theory, the evolution of external theory, externalclassification, causes of performance and external solutions are discussed. Thetechnology innovation is considered to have the features of public product thatcan generate positive externality, and there is a phenomenon of market failure intechnology innovation, so it is necessary for the government to intervene andregulate.Then, given the related policies, this paper explores the Shanghaigovernment science and technology investment mode including its characteristic,trends, problems and the reasons. Shanghai’s government science andtechnology investment mode has the characteristics that be described as"Focusing on the economic development, the urban development, and theenterprises’ innovation". And the trend is that the government will play the roleas a service provider, will promote the production and application, and will layemphasis on both creating the environment and stimulating the vitality ofinnovation. Meanwhile, there are still some problems such as the investmentstructure is irrational, the SMEs lack of vitality and the environment needs to beimproved, etc. Referencing to the externality theory, the mode in the U.S.,Britain, Japan, and the current problems Shanghai is facing, this paper come upwith some suggestions and proposals to optimize Shanghai government scienceand technology investment mode, including optimizing technological investmentstructure, fostering leading enterprises, and improving the environment forinnovation, in order to provide reference for the Chinese scientific and technological innovation flourish.