Can The Intensification Of R&D Investment Achieve Innovation-Driven Growth

Since 2010,the growth rate of China’s economy has entered a downward trajectory,the marginal effect of factor input has been continuously weakened,and there has been a combination of three periods:the shift of growth speed,the painful period of structural adjustment,and the digestion period of previous stimulus policies.This shows that the previous strategy of relying on investment and export to drive economic growth is not sustainable.At this time,relying on technological innovation to drive economic structure transformation and total factor productivity improvement has become a way out for China’s economy.R&D activities are the important source of endogenous technological progress,is also the foundation of innovation driven development strategy implemented,but some empirical evidence based on China’s economic data for promoting R&D TFP enhance the effect of debate,many empirical analysis shows that the ascension of R&D input was not significant to promote the improvement of total factor productivity.In this regard,it is necessary to explore the institutional factors affecting the transformation of R&D investment into TFP growth.The analysis of this paper shows that the deviation of capital misallocation from pareto optimal state is the key environmental factor affecting the TFP effect of R&D investment intensity.In order to verify this hypothesis,the empirical analysis was conducted with the inter-provincial panel data of China from 1998 to 2016,and the following conclusions were drawn:1.There is threshold effect of increasing R&D input intensity on the growth rate of TFP,which is manifested as that the positive coefficient of R&D input intensity on the growth rate of TFP gradually decreases with the degree of capital misallocation from a low to a high range,and becomes no longer significant under the higher capital misallocation zone system.2.The decomposition of TFP structure shows that there is a threshold effect of r&d investment intensity on the rate of progress of cutting-edge technologies,while there is no threshold effect on the improvement of technical efficiency;3.For different R&D activity execution departments and different research types of R&D activities,their elasticity to TFP is also inconsistent under different capital mismatch conditions;4.For regions with a high degree of capital misallocation,increasing the proportion of higher education institutions and R&D expenditures for basic research can more effectively promote innovation-driven development.