Empirical studies of the relationship between technological innovation and economic growth - Shanghai-based panel data analysisAuthor(s): Zhi-shuai Song, Guo-jun Nan
This paper is mainly to study both the relationship between technological innovation and economic growth, and the dynamic equilibrium relationship between science and technology human capital and economic growth. In the current era, innovative talents of science and technology are gradually becoming the core elements of competition in national and regional development, but also becoming an important support for building an innovative country and the key to master the initiative. In this context, research on this topic has important and practical significance. Firstly, in this paper, it builds an interpretation model of technology and economic growth to study the relationship between economic growth and technologic innovations. A positivistic model is established by applying the vector autoregressive (VAR) model in this paper. The positivistic model uses the regional gross domestic product (GDP) as a measurement of economic growth, the quantity of patent applications as indicator of the technological output and the number of students in colleges and universities as technological per 100,000 as indicator of innovation. Model pulse analysis and variance analysis are done in this paper. It reveals the long-run equilibrium relationship between economic growth, technological innovations and patent outputs by analyzing Shanghai’s economy, the most independent and integrated economy. It can be concluded that this relationship is mutual influence, mutually reinforcing relationship in a long term. In the short term, the boost on technological innovations and patent outs by economic growth is obvious. However, there is no obvious effect in reverse. This indicates that it still need a gradual process to promote the contribution of technology to the economy.