| The construction industry is one of the three pillar industries in China, the position of the technological innovation can not be ignored. However, the slow progress and larger regional differences of the technological innovation still exist in China’s construction industry. This paper attempts to find out the root and the salvation of the problem.In this paper, through theoretical analysis and drawing on previous research results, and learn from the VAR model and long-term cointegration and short-term error correction theory that based on the VAR model, as well as state space mode that incorporated unobserved variables into the observable model to estimated; using several key factors to study the technological innovation and regional differences on the construction. Economic environment, R&D investment, the use of foreign investment and intellectual property protection are included in those key factors. By quantitative analysis, conclusion of this article as follows:(1) Through the co-integration analysis that based on VAR Model, a long-run equilibrium relationship was found between technical innovation of construction, the protection of intellectual property, development of construction industry, science and technology investment of construction and foreign direct investment. The level of development on construction and the R&D investment in the construction industry have a positive impact of technological innovation on the eastern, central and western regions. On the contrary, foreign investment has played a negative role, intellectual property protection has weak negative impact on the west.(2) Through the analysis of error correction model that based on VAR Model, found out that when the dependent variable construction technology innovation of the eastern, central and western regions deviate from the long-run equilibrium, it will be state back to equilibrium from non-equilibrium by0.77,1.577,0.212adjustment.(3) Learn from the Granger causality test theory, to explore whether the economic environment, R&D investment, utilization of foreign investment and intellectual property protection has significantly lagged effect on the technological innovation of construction. The results show that the eastern part of the construction industry economic development and technological innovation have formed a virtuous circle; the western region, the construction industry was developed by the promotion of technological innovation; this sound development path has been forming.(4) Draw on the state space theory, from the short-term fluctuations, the development of construction, investment in science and technology and intellectual property protection have a positive impact on the construction of technological innovation in China’s central and western areas. The foreign direct investment has a negative impact on the construction of technological innovation in China’s western region.Through empirical research to identify the influence of different factors on the construction on technological innovation and region differences. So, the relevant recommendations was been proposed, at the mean while, the most effective way was used to narrow the differences in construction technology innovation in China’s eastern, central and western regions. |