| Nowadays, communication revolution has been accelerating global economic, scientific and technical integration. China meets strategic opportunities to enhance innovation competence. However, owing to the externality of innovation achievement, it will be lead to market failure. So the new function of government is to rectify market failure, enhance national competitive competence and promote economic growth. Government takes more and more important part in integrating resources of all fields and putting forward technological innovation.Both technical innovation theory and endogenetic growth theory regard public S&T subsidy as a supplement to rectify market failure. This thesis sorts out a lot of relative reference materials, summarizes the different effects of public S & T subsidy on technological innovation. On the base of literature review and mechanism analysis, this paper confirms these theoretical hypothesis with empirical evidences of provinces' panel data in China during 2001-2008.The main conclusions are as follows:Firstly, the human capital investment in public R&D institutes can provide more promotion to the regional innovation. But the R&D expenditure of public R&D institutes has some crowding-out effects on regional innovation. Secondly, the public S & T subsidies have no crowding-out effect on business innovation input, but the relationship between public S & T subsidy and the business innovation appears inverted U-curve with the increase of subsidies. According to these results, some suggestions are given in the last part. |
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