Research On The Impact Of Technological Innovation And Institutional Innovation On Guangdong's Economic Growth

In the past 40 years of reform and opening up,the economy of Guangdong province has grown rapidly,the dividends of traditional factors have gradually been dissipated.The driving force for economic growth urgently needs to be switched from the past factor-driven and investment-driven to innovation-driven.Otherwise,Guangdong's economic growth will face severe challenges of insufficient power.The report of the 19 th National Congress clearly mentioned that the implementation of innovation-driven development strategy mainly relies on technological innovation and institutional innovation.The government of Guangdong province has repeatedly mentioned relying on technological innovation and institutional innovation to consolidate the foundation of Guangdong's high-quality economic development.Therefore,technological innovation and institutional innovation are of great significance to the economic development of Guangdong Province.This paper comprehensively uses theoretical analysis and empirical analysis methods to deeply investigate the impact of technological innovation,institutional innovation and its interactions on Guangdong's economic growth.In the theoretical part,the effects of technological innovation and institutional innovation on Guangdong's economic growth are analyzed from two aspects: the theoretical mechanism and the influencing mechanism.Then,analysis on the current situation of technological innovation,institutional innovation and economic growth in Guangdong is done.In the empirical part,this paper uses panel data of 21 prefecture-level cities in Guangdong from 2003 to 2016,by the means of unit root test,cointegration test and multicollinearity test,using regression methods such as fixed effect and random effect,to clarify the impact of technological innovation,institutional innovation and its interactions on Guangdong's economic growth from the perspective of full sample and subsample.At the end,the whole samples are tested by the three robustness test methods,and it turns out that the regression results are reliable.The research results of the text show that: First,in Guangdong province,the capability of technological innovation and the capability of institutional innovation continue to improve,the level of economic development is constantly improving,there is a relatively consistent growth trend among technological innovation,institutional innovation and economic growth.Second,all the technological innovation,institutional innovation,capital and labor force have a significant positive effect on Guangdong's economic growth.Seeing from the impact coefficient,the main driving force of Guangdong's economic growth is still the input of capital and labor.However,technological innovation,and institutional innovation are becoming more and more important in the economic growth.Third,from the perspective of interaction,the impact of technological innovation on Guangdong's economic growth will be influenced by institutional innovation.The deeper the degree of institutional innovation is,the stronger the positive effect of technological innovation on economic growth will be.Fourth,to take various factors of institutional innovation into concern,all the three factors,as market allocation,industrial structure and education system,have played a significant positive role in promoting Guangdong's economic growth.Fifth,from a subregional perspective,the imbalance of economic development in Guangdong still exists.The impact of technological innovation and institutional innovation on economic growth shows obvious regional differences.Finally,this paper suggests promoting Guangdong's economic growth by increasing investment in science and technology research and development,creating a better innovation environment,improving the level of technological innovation with institutional innovation,promoting revitalization and development of Guangdong's eastern and western rigions through innovation,and adhering to the ‘two-wheel drive' of technological innovation and institutional innovation.