Regional Differences Of Direct Government R&D Funding For Business R&D Investment Impact

With economic growth, the development status in economic activity increasing, a country's R&D model and the main structure of R&D investment will change, a key factor behind this rule is that the government's R&D funding. In this paper, by analyzing Chinese industrial enterprises in the provincial panel data, the author analyzed the regional differences of government's direct R&D funding for business R&D investment effects for increasing the promotion of R&D strength.Then the author analyzedthe factors affecting this difference in nature. The study found that our government'sdirect R&D funding will induce business R&D investment. And this induced effects will affected by regional economic development levels, especially the improvement of the income levels growing, which causes our regional differences, which is done by the discerning consumer demand-side effects and new products to achieve economies of scale. Finally, the paper focuses on government'direct R&D funding scale, funding structure, regional policy and deepen reform of the income distribution system, supply-side reform and put forward policy recommendations.