Technological Innovation, Institutional Change and Economic Growth: an Empirical Study

摘要

Institutional change and technological innovation have major influences on economic growth. This paper investigates the long-run relationship among technological innovation, institutional change and economic growth by means of co-integration analysis of Chinese data from 1985 to 2007. The conclusions are as follows. Technological innovation plays a certain negative role on economic growth, while institutional change exerts great promotion on the economic growth regardle ss of the interaction between technological innovation and institutional change; the inhibitory impact of technological innovation on economic growth is further increased if the interaction of technological innovation and institutional change is taken into account. Therefore, the key problem at present is how to further reform the economic system so that technological innovation may exert its big function in the economic growth.