Study About Regional R & D Investment And Innovation System

Regional R&D investment is an important factor in promoting regional innovation, the level of innovation in a region and the number of its R&D investment is positively correlated. At first R&D investment makes self-innovation capacity changed. Then as new knowledge's inherent externality, the change of self-innovation capacity makes knowledge inevitably overflows, knowledge spillover affects other companies or region's innovation, and through competition mechanism changes of other companies or region's innovation in turn influence R&D re-investment. Therefore, R&D investment and innovation constitute the "input-innovation–re-input" cycle of systems, and R&D investment level depends on the stage and state of the system. With the question of what determines R&D investment level, This article discusses the mechanism of R&D investment to the change of innovation, and analysis the role and impact of knowledge spillovers, then we distinguish the development stage of R&D investment and regional innovation system, finally, we make an Empirical analysis about Zhejiang Province.At first, this paper discusses the mechanism between R&D investment and regional innovation, establishes a framework of the cycle of R&D investment system, and analysis knowledge spillovers and its impact to the regional innovation. Then divide three development stage of the regional innovation based on the different impact to innovation of the three sources of knowledge spillovers, and makes an empirical analysis of Zhejiang Province to find out the impact of three kinds of knowledge spillovers to its innovation: Firstly, according to provincial time series data, we using the Knowledge Production function Model to analyze the R&D investment, external knowledge spillovers and reverse technology spillover's impact to it's innovation, and then take the spatial econometric models to analyze the Space section data of 11 prefectures and cities in Zhejiang in 2007-2008 and 2008-2009, to make clear the impact of internal knowledge spillovers, external knowledge spillovers and reverse technology spillover to it's innovation. We use Moran's I index to determine whether there is spatial clustering phenomenon of regional innovation and where is it, so we can select the appropriate spatial lag model or spatial error model to estimate the parameters. Finally, with the analysis of theories and empirical results we discuss the development stage and direction of Zhejiang'innovation.Time series econometric results show that R&D investment and human capital of Zhejiang Province, Foreign R&D investments are seem to play a significant role in enhancing the level of it's innovation; R&D investment to other country is positive but not significant. Section data measured results show that it has clear space effects between the 11 prefectures and cities'innovative behavior in Zhejiang Province, and it's getting more obvious; the affection of FDI channel of external knowledge spillovers to the innovation of Zhejiang is obvious, but it's impact seems to get weaker; the affection of the cluster of high-tech industry channel of internal knowledge spillovers to the regional innovation is positive but not significant; the affection of R&D investments to other country channel of reverse technology spillovers gets a positive impact to the regional innovation, and the influence is becoming more obvious. Then with the analysis of theories and empirical results we discuss the development stage and direction of Zhejiang'innovation, and find out that in currently development stage of Zhejiang's innovation is in the transition from Absorption-oriented stage to Foreign-oriented stage, the conditions of Endogenous stage is remain not ripe. We believe that the development of Zhejiang's innovation should make full use of external knowledge spillovers, actively use reverse technology spillovers, and gradually improve the internal knowledge spillovers'effects.