An Estimation Of The Social Return To R&D In Chinese Manufacturing Industries

R&D investment has significant social return attributes.There have been studies on the return of domestic R&D investment,regarding R&D capital as the same factor of production as ordinary capital,mainly focusing on the input and output of the investment subject itself.However,an important difference between R&D investment and ordinary investment is that R&D investment can not only increase output and reduce production costs,but also improve social welfare.In this paper,the social rate of return of R&D investment in China's industrial R&D intensive industries is estimated.It is defined that the social rate of return of R&D investment consists of three parts:private rate of return of R&D investment,rate of return of R&D spillover and rate of return of change of knowledge production cost.On the basis of the estimated results of each rate of return,the influence factors of each rate of return are analyzed.Through empirical analysis,this paper draws the following conclusions:first,the social return rate of China's industrial R&D investment is about 0.4-0.5,and the private return rate of R&D investment is about 0.2-0.3.Second,China's industrial R&D spillover rate of return is about 0.2-0.3,which is similar to private rate of return.Third,the cost of knowledge production in most R&D intensive industries in China is rising,leading to a negative rate of return on the change of knowledge production cost,which is around-0.15-0.01.Fourth,the increase of state-owned property rights and foreign direct investment significantly promoted the increase of social rate of return on R&D investment and private rate of return on R&D investment,while the increase of enterprise size,export trade and R&D intensity significantly inhibited the increase of social rate of return on R&D investment and private rate of return on R&D investment.Based on the research results of this paper,the following policy Suggestions are put forward first,strengthen the protection of intellectual property rights,carry out legal sanctions against vicious competition and theft of research and development achievements,and further improve the private return of research and development;Second,we should increase state-led investment in basic,public welfare and pioneering research and development,so that research results can spread freely through spillover effects and help improve social welfare.Third,we should increase support for R&D investment,especially for basic research.Fourth,strengthen the attack of major technological innovation;Fifth,encourage small and medium-sized enterprises to transform from imitation innovation to independent innovation;Sixth,lower local protection barriers and encourage enterprises to introduce foreign advanced technology and talents.