Discussion on the role of technology innovation in economic growth

This essay selects cities at prefecture level or above of China in 2010 as samples,using spatial econometric models to examine the influence of technology innovation which is measured by the number of patent grants on the urban economic growth. The results show that technology innovation has played a significant role on promoting urban economic growth after controlling other factors of economic growth. However,the influence of technology innovation is not as great as physical capital and other factors of economic growth,indicating China is still at the development stage that economic growth relies on physical capital. Institution is an important factor that influences urban economic growth and excessive government intervention would hinder economic growth. Infrastructure has a positive influence on urban economic growth,but the contribution to economic efficiency is far less than the direct effects of infrastructure investment. The size of most cities may not reach the threshold of agglomeration economies of scale,and thus they perform diseconomies of scale. Urban economic growth also has significant spatial dependence and shows strong spatial approaching spillover effect. Considering the need for long- term urban economic growth,the government should improve local technology innovation level vigorously by shaping the body and institutional environment which is conductive to technology innovation.