TITLE:
Calculation and Empirical Analysis on the Contributions of R&D Spending and Patents to China’s Economic Growth
AUTHORS:
Jie Li, Yu Jiang
KEYWORDS:
R&D Expenditures, Patents Granted, Contribution Rate to GDP
JOURNAL NAME:
Theoretical Economics Letters,
Vol.6 No.6,
November
28,
2016
ABSTRACT: Based on the national data from 1995 to 2014, we develop an extended C-D production
function model alongside with the Solow growth rate equation to investigate
contributions of R&D expenditures and patents to China’s GDP respectively. Results
indicate that: 1) both R&D expenditures and patents granted are significantly positive
correlated with GDP and the growing output elasticity to GDP is in leaps and
bounds after 2000 and 2005; 2) comparing to patents granted, R&D expenditures account
for a higher share of contribution to economic growth and the both shares
show a fluctuating downward trend; 3) the output elasticity of labor is significantly
higher than other factors, signaling capital saving technical progress in China. The
elasticity coefficient of scientific-technical progress to GDP is small. Nevertheless, its
influence is gradually increasing and the intensive economic growth transformation
has formed. Some policy implications are distilled after empirical analysis. R&D application,
transformation and related incentive mechanism should be improved. Besides,
the fields of R&D funding should be adjusted to further coordinate the relationship
between the structure of R&D expenditures and the industrial structure.