A Research On The Influence Of Housing Price To The Independent Innovation Ability Of Industrial Firms

Recently,China's economic growth rate slumped significantly due to the disappearance of the demographic dividend and the decrease of resources.So it is urgent to change the pattern of economic growth driven by factor.Economic growth strongly depends on the accumulation of the knowledge and the enhancement of the innovation according to the endogenous growth theory,more importantly,capability for independent innovation is the fundamental stimulant of maintaining a rapid economic growth.Although the strategy of rejuvenating China through science and technology was designated to be the basic national policy in 1990s,the capability for innovation in China is still very weak compared to the one in developed countries.Since the reform of housing system in 1998,the urbanization in China has been carried out smoothly,turning out that the price of the commercial residential building has been rising continuously.The urban-rural income gap has been expanding on account of its dual structure,which is,the citizens can get hold of the ownership of residential housing so that the rising of its price turns into the increase of their wealth.Because of the expansion of the urban-rural income gap,the optimization and upgrade of the resident consumption structure is restricted to a certain extent.Therefore the low-income group has little demand for the innovative product,resulting in the shrink of its market and the decline of its revenue.So the income gap is doing no good to the improvement of the capability for innovation.The dissertation,focusing on the impact of the price of residential housing on corporates' capability for innovation,urban-rural income gap,urbanization,etc.,has a great theoretical and practical significance on improving the innovation capability and the conversion of China's economic growth.The structure of the dissertation is listed as follows:firstly,presenting the main ideas of the dissertation with respect to the price of residential housing and capability for independent innovation both home and abroad,secondly,wrapping up the general information of the price of residential housing,income gap and the input and output of the innovation in China,moreover,analyzing how the corporates' capability for innovation is influenced by the price of residential housing through the income gap using regression analysis.The panel data of 30 administrative districts in China from 2004-2014 was used to establish the fixed-effect model,which explained the impact of the price of residential housing on corporates' capability for innovation theoretically.The results indicated the notable negative correlation between the price and the innovation.The results also showed that the income gap is the intervening variable of the two factors discussed above,besides,the income gap is evidently influenced by urbanization and social security expenditure.In short,with the rising of the price,the income gap is expanded which leads to the slack of corporates' innovation.At last,certain suggestions regarding keeping the price of residential housing at an appropriate level,reducing the income gap,increasing investment on research and development,etc.were put forward in the dissertation.