A Study Of R&D Paradox In The Perspective Of Regional Innovation Systems

In 2000-2013, the average annual growth rate of GDP in China is 15.5%. Simultaneously, R&D expenditure is 21.97%. In 2001-2010, the R&D expenditure elasticity of GDP tends to increase, however, tends to decrease after 2010. This non-matched economic phenomena between excessive R&D expenditure with the below-zero marginal output in the Regional Innovation Systems was named R&D Paradox.The research objective of this paper is to provide a different research perspective of R&D Paradox under the theoretical framework of Regional Innovation Systems. R&D Expenditure Curve has been created to describe the relationship of R&D expenditure and economic development. The reason behind the curve is the inefficiency of Regional Innovation Systems, coupled with the erosion effect of excessive R&D expenditure on the human resource accumulation, which leads to decrease of marginal output of R&D expenditure.Under the background of economic globalization, innovation is the engine of regional economic sustainable development, therefore, the empirical research accounts the total factor productivity based on the provincial panel data during the years 2000-2013 under the framework of Regional Innovation Systems, compares the efficiency of Regional Innovation Systems among different regions, and estimates the optional R&D intensity based on the optional R&D intensity panel threshold model.The empirical research shows that, the efficiency of Regional Innovation Systems is highest in central area, lowest in the west; the optional R&D intensity is 11.4% highest in the east area,1.5% lowest in the west, in the central area 3.4%.Based on the analysis above, how to transcend R&D paradox will be discussed in perspective of improving the operation efficiency of Regional Innovation Systems and reducing the erosion effect of excessive R&D input on human resource accumulation, in order to providing enlightenment to promote regional economic development.