| Due to technological externalities and pecuniary externalities exist in the technological innovation process, making it difficult for the competitive market to achieve the optimal level of the technological innovation, resulting in a market failure, which makes it reasonable for the government intervention. Given that fiscal expenditure can be more effectively in compensating for positive external supply shortage compared with other public policies (Rosen,1995), therefore fiscal expenditure is one of the important means of the government intervention. Nowadays, China’s technology innovation capability is relatively backward compared with other countries, therefore, it is necessary for China to improve her technology innovation capacity. Therefore, the purpose of this study is to investigate whether fiscal technological expenditure can effectively correct the externalities in technology innovation activities and promote technology innovation or not.The research idea of this paper is:first of all, state the background and significance of this article, then summarize the research literatures related to the topic; Secondly, based on the previous research foundation, this article concludes that the fiscal technological expenditure can enhance technological innovation in three aspects through the theoretical analysis; Finally, this research selects fiscal technological expenditure data and technological innovation data of30provincial regions in China from1998to2006, then do the empirical test using the panel data model, and gets the research conclusion at last. Specific research framework is below:The first chapter is introduction. This part introduces the background and significance, research methods, research content, framework, innovation and insufficiency of this article.The second chapter is literature review. When it is comes to the content arrangement, firstly, we summarize researches which are related to the factors of technological innovation, secondly, we summarize researches about the government functions on the technological innovation, finally, researches about the effects of fiscal technological expenditure on technological innovation are summarized; when it comes to the structure arrangement, firstly, we conclude the theory research literature, secondly, we sum up the empirical research literature.The third chapter is the theory study of the fiscal technological expenditure in promoting technological innovation. First of all, the article establishes a model about the government public expenditure to the innovation incentive through the summary and induction of the literature of Liu (2007), and finds that the public expenditure can produce incentive to innovation; Secondly, the article introduces the government fiscal expenditure into the knowledge production function founded by Romer (1990) et al. With the introduction of human capital accumulation, the article constructs a new knowledge production function and the human capital production function, the result is that fiscal expenditure can indirectly promote the knowledge production through promoting human capital accumulation; Finally, by introducing the coordination failure theory, it is concluded that the fiscal expenditure is necessary to support construct technology innovation system. Therefore, through the theoretical analysis, the article makes the effects of fiscal expenditure into three aspects:fiscal material capital investment, fiscal human capital investment and fiscal technology innovation system construction investment.The fourth chapter is the empirical analysis based on panel data model. This part mainly includes the model set, variable selection and data introduction, results and analysis of the empirical test. In order to be able to explicitly consider the heterogeneity of different parts, weaken the colinearity between variables and reduce the deviation of estimated results, this article uses panel data model to do the empirical test. The research selects the regional innovation data and fiscal expenditure data from China’s30provinces from1998to2006to test the impact of fiscal technological expenditure (fiscal material capital investment, fiscal human capital investment and fiscal technology innovation system construction investment) on technology innovation (measured by the patent number) in our country empirically, the study finds that both fiscal material capital investment and fiscal human capital investment can enhance technology innovation significantly in China, however, the fiscal technology innovation system construction investment doesn’t improve technological innovation performance in our country just as the theory explains.The fifth chapter is research conclusion and policy recommendations. Through the study we find that both fiscal material capital investment and fiscal human capital investment can enhance technology innovation significantly in China, however, the fiscal technology innovation system construction investment doesn’t improve technological innovation performance in our country just as the theory explains. Therefore, improving the utilization efficiency of fiscal technology innovation system construction funds is critical for fiscal technological expenditure to promote technological innovation.The main contribution of this paper is that we explore the promoting impact of fiscal technological expenditure on technological innovation in three aspects:fiscal material capital investment, fiscal human capital investment and fiscal technological innovation system, besides, the research is arranged using both the theoretical explanation and empirical test. The final conclusion of this paper is that:both fiscal material capital investment and fiscal human capital investment can enhance technology innovation significantly in China, however, the fiscal technology innovation system construction investment doesn’t improve technological innovation performance in our country just as the theory explains. Therefore, improving the utilization efficiency of fiscal technology innovation system construction funds is critical for fiscal technological expenditure to promote technological innovation. |
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