A Study On The Impact Of Labor Remuneration On Technological Innovation

Income distribution and technological innovation are two hot topics that the economics community has always focused on.Most of the previous studies on the factors of technological innovation took the perspective of R&D investment,human capital accumulation,innovative institutional environment,few studies tried to connect the technological innovation with income distribution.This paper attempts to explore the impact of labor remuneration changes on technological innovation from the perspective of functional income distribution.Through the literature review,the thesis sorts out three mechanisms of technological innovation:effective demand mechanism,capital accumulation mechanism,factor supply mechanism,in which the proportion of labor compensation in the income distribution system is through the effective demand mechanism,human capital mechanism,factor supply mechanism to promote technological innovation,and through the capital accumulation mechanism to hinder technological innovation,when the hindering effect that the capital accumulation mechanism brings become greater,the increase in the proportion of labor remuneration will hinder technological innovation and,conversely,promote technological innovation.In order to verify the correctness of the theoretical analysis,this paper collects the inter-provincial panel data from 1996 to 2014,uses the fixed effect model to carry on the empirical analysis and then get three conclusions:First,in general,under the current economic system,the proportion of remuneration in national income can significantly improve China's technological innovation capability.Second,the proportion of labor remuneration is mainly through the demand-scale mechanism,demand structure mechanism,human capital mechanism,to promote China's technological innovation,and through the accumulation of material capital mechanism to hinder technological innovation.Third,there are regional differences in the effectiveness of each mechanism that affects technological innovation.From a national perspective,the impact of human capital mechanism on technological innovation is significant,and only in the western region the impact of human capital mechanism on technological innovation is significant.Finally,this paper puts forward some policy suggestions from the aspects of labor remuneration and technological innovation.