Research On The Relationship Between R&D Input And Economic Growth Based On Spatial Panel Model

Deng Xiaoping once said, “The science and technology is the primary productive force”, which not only reveals the status and role of science and technology in the process of social and economic development, but also promotes the development of science and technology of China. Independent innovation is the main way to improve the level of science and technology, research and development(R&D) activities have become the carrier of science and technology innovation. In order to promote not only technology innovation and knowledge accumulation but also long-term economic growth, increasing scientific inputs in research and planning R&D activities scientifically and reasonably are the effective measure on the transformation of economic growth pattern. In this paper, spatial panel data model(SAREM[2]SRRE) was taken to study the relationship between the R&D activities and economic growth in different provinces of China.This paper first provides an overview of some background and the significance of the survey. According to existing literature about interaction effects of R&D input and economic growth at home and abroad, this article proposes the research argument that the relationship between the R&D activities and economic growth in different provinces of China studied by means of SAREM[2]SRRE model.Secondly, this article introduces the basic knowledge about spatial econometrics, spatial dependence, spatial weights matrix, spatial panel model and estimation.Thirdly, this article illustrates the impact mechanism of R&D input on economic growth, revealing the disequilibrium law of spatial distribution of economic development, there is an obvious phenomenon of spatial cluster. Accordingly, SAREM[2]SRRE is used to transform Cobb-Douglas production function and to analyze the effect of R&D input on economic growth. According to the result, R&D input has played a significant role on promoting economic growth in different provinces of China. Both R&D spillovers and foreign investments have significant promotions to economic growth.Fourthly, this article shows the impact mechanism of economic growth on R&D input, indicating the disequilibrium law of spatial distribution of R&D input, and there is an obvious phenomenon of spatial cluster. Accordingly, SAREM [2] SRRE is used to analyze the impact factors of R&D input, especially the impact of economic growth on R&D input. There are several important factors of increasing the R&D input for each province, which are the government fiscal policy of science and technology, the third industry, import and export trade, and staff of science and technology research.Finally, according to the result of empirical study, some suggestions are put forward.