The Influence Of Income Gap Of Chinese Residents On Technological Innovation

Since the reform and opening policies,China's economic development has made great achievements.At present,China's economic development has entered an important period of transformation,relying on the demographic dividend and the extensive development model of resource investment has been unable to continue,take the road of technological innovation has become an inevitable choice.At the same time,the income gap between our residents is also very serious,the Gini coefficient over the international cordon for many years.Income gap have a profound impact on consumer demand and human capital accumulation,which will affect the technological innovation.What effect does the income gap have on the technological innovation of our country?How does the effect arise?The research on these problems is of practical significance.Based on this,this paper first studies the theoretical mechanism of the effect of income gap on technological innovation,and then uses the fixed effect model to analyze the effect of income gap on technological innovation in the empirical part.In the theoretical part,revealed from the view of consumption demand,the income gap affect the technology innovation through "price effect" and "scale effect",and from the perspective of human capital,the income gap affects the technological innovation through the "structure effect" and "scale effect".According to the theoretical analysis,the author puts forward the hypothesis that the effect of income gap on technological innovation is inverted U-shaped.In the empirical part,the regression analysis is based on the provincial panel data from 2005 to 2014.The empirical results show that there is a significant inverted U-shaped relationship between the income gap and technological innovation in China,and the criticality of the inverted U-shaped curve is in the urban-rural income ratio of 3.80.The empirical study also shows that the income gap of our residents has promoted the technological innovation on the whole,which shows that the income gap of our residents has not reached the critical point of the inverted U-shaped curve.But through the intermediary effect studies show that the income gap by inhibiting the consumer demand to curb technological innovation.And then with different technical level of technological innovation indicators to do robust test,the results show that the regression result is robust.Finally,the data are divided into eastern and central-western regions for empirical analysis,the results found that the inverted U-shaped relationship between income gap and technological innovation is still significant.The critical points of the inverted U-shaped curve are in the urban-rural income ratio of 2.62 and 3.94,respectively.Through the empirical study we also found that foreign direct investment,technology market transactions significantly contributed to China's technological innovation.According to the conclusion of this paper,the corresponding policy recommendations are put forward.From the view of China's general and the eastern region,it is appropriate to raise the income gap,which is conducive to promoting technological innovation.For some provinces in the central-western regions,the income gap problem has been very serious,so we need to narrow the income gap in order to promote technological innovation.At the same time,it is necessary to further increase the consumption of residents,attract foreign direct investment and improve the protection and transfer of intellectual property rights system to promote technological innovation.