The Resarch On Effects Of Capitalized Industrial R&D

R&D capital is a new kind of knowledge produced in R&D activities, and belongs to the intellectual capital. It is thought as a capital investment for improving the efficiency and productivity in the economy.From the perspective of the R&D inherent nature of investment, SNA2008suggests that the R&D expenditure should be recorded as capital formation, in order to better reflect the contribution of R&D for economic growth and development. The measurement of R&D capital stock faced many difficulties, such as R&D expenditure price index and output index, the depreciation rate of fixed assets formation of R&D, the boundary of R&D capital expenditure, etc.R&D data is not accessible in China, we can only get some through the estimating. R&D output and fixed capital formation of industrial enterprises are estimated based on the method of the sum of the cost of production, the primary problem is to measure the internal consumption, employee compensation, fixed capital consumption, and net returns and other production taxes (minus production subsidies). Because there is no breakdown data of current expenditure and capital expenditure during1991-1997, so in order to unified all the R&D expenditure is divided by where it was used. Finally the R&D expenditure was divided into internal personnel labor and other current expenditure, instrument and equipment expenditure and other assets expenditure.This paper is based on SNA2008capitalized R&D expenditure when analyzing of the problems related to China industrial enterprises internal R&D expenditure, through constructing the satellite accounts within the framework of the industrial R&D expenditure capitalization in China. Then this paper analyzes the influence on industrial production and economic growth. The results show that the R&D capitalization makes constant industrial added value increased, has an average growth rate of12.1%, with the capitalization industrial the enterprises internal R&D expenditure increased year by year since1991to2012.The contribution of tangible physical capital to economic growth is the largest; the average contribution rate of economic growth in China is36.78%. Labor’s contribution to the economic growth in second place, the average contribution rate of economic growth is23.42%. In addition, the role of R&D capital in economic growth is becoming more and more important, the contribution rate from13.53%grow to28.82%from1991to2012, and the average contribution rate was22.91%. The contribution rate of TFP was16.88%on average. And the contribution of labor input to economic growth decreased from25.65%to21.48%, and changed very a little, by0.84%every year.When capitalized R&D expenditures, depreciation rate and return rate on invested capital have little influence on the actual industrial production, the sensitivity is very low.