An Empirical Study on the Relationship between Fiscal Expenditure on Science and Technology and Technology Innovation in China

摘要

Base on the data in China from 1985 to 2012, this paper studies the relationship between fiscal expenditure on science and technology and technology innovation (patent applications) by using co-integration analysis and Granger cause test. The results show that: Although the fiscal expenditure on science and technology and technology innovation (patent applications) are fluctuant respectively, the long term relationship between them is stable and co-integrative. China's fiscal expenditure on science and technology has a great role in promoting technological innovation and they are Granger cause of each other.