Research On The Interaction Mechanism Among Innovation Input, Industrial Upgrading And Economic Growth Of Jilin Province

Since the implementation of the revitalization of northeast old industrial base strategy,Jilin province economy had maintained a rapid growth in the followingten years, with the average growth rate 13.48% from 2003 to 2012. However, with our economic development going into the "New Normal", Jilin province economic growth suffered a dramatic decline. In the recent years, Jilin province has adopted a series of policies and measures in order to maintain the economic growth, adjust the structure and promote the innovation. But it is still difficult to reverse the downward trend in its growth rate.The industrial structure is an obvious problem which restricts the economic growth of Jilin province. For example, the development of traditional industry is faced with difficulties, the development of emerging industry and high technology industry lags behind, the impetus of industrial innovation is insufficient and the efficiency of innovation is low, etc. According to the traditional economic theory, innovation can promote the upgrade and transformation of industrial and then increase the speed of economic growth. The upgrade and transformation of industrial can also promote the innovation investment and the improvement of science and technology indirectly by knowledge accumulation, structural adjustment and promoting the economy to expand. According to Kuznets’ s point of view, the expansion of the economy can also cause the adjustment of industrial sectors and promote the structural transformation. Thus, it can be seen that it exists a linkage mechanism between innovation input, industrial upgrading and economic growth, which can promote each other and depend on each other. It is a benign interaction. This benign interactive relationship is conducive to promoting the development of regional economic structure transformation and power transformation.In this paper, based on the existing research results and reviews of the classical theory, we analyze the interactive relationship among innovation input, industrial upgrading and economic growth based on the panel data of Jilin province using panel vector autoregressive model and panel Granger test method. The results show that improving the innovation investment in Jilin province can promote the provincial industrial upgrading and economic growth effectively, but economic growth and industrial upgrading do not have a significant effect on the improving of the innovation input of Jilin province. Each industry as well as industrial upgrading and economic growth has not formed a benign interaction relationship. Therefore, weak industry development and insufficient of innovation input are important bottlenecks on the development of innovation-driven strategy of Jilin province. We should deepen the reform of systems and mechanisms, foster innovation and entrepreneurial economy. Meanwhile, to promote the development of economic in Jilin province, we should increased investment in innovation, speed up the promotion of industrial structure adjustment and industry technical level and deal with the relationship between the steady growth and structure adjustment.The innovation point of this paper is mainly on: we discuss Jilin province innovation-driven development from the aspect of the interaction relationship among innovation input, industrial upgrading and economic growth. We use both theoretical and empirical methods to analyze the relationship among innovation input, industrial upgrading and economic growth of Jilin province. On the choice of index, we select the industry upgrading index that can reflect the industry technical level and production efficiency better instead of the simple ratio between three industries, which makes the indices more scientific and reasonable, the empirical results more reliable.