Empirical Study Of China's Manufacturing R & D Effect

In knowledge economy age, science & technology has been regarded as an essential production factor and R&D investment is among the main sources in stimulating scientific and technological innovation. The thesis is to empirically investigate the input-output effect of R&D in China's manufacturing industries, through the lens of technical relationship in production process.First of all, both R&D labor and R&D capital input variables are introduced into the input vector, and a two-level CES production function model is constructed to describe the technology of production. Then the firm-level cross-section data of Shanghai's main manufacturing industries in 2003 is employed to study the input-output effect of R&D as well as the substitution relationship among input factors. Moreover, the thesis also makes a methodological discussion of multicollinearity, and proposes a feasible approach to deal with the problem.The results of a series of ridge regression models constitute the core of the thesis, based on which some instructive conclusions and suggestions are achieved, as to the development strategy of R&D in China's manufacturing industries.