The Effect of Governmental R&D Expenditure on Corporate Expenditure:Empirical Analysis Based on Provincial Data

Technological progress is the source of long-term economic growth,and research and development activities are the core activities of science and technology.The government engaged in RD activity may produce two different effects for the corporate R D behavior: crowding out effect and complementary effect.The empirical study based on Chinese 31 Provinces panel data found that,on the whole,there are complementary relationships between the governmental RD expenditure and the corporate RD spending,and governmental RD spending can induce corporate RD expenditure.But this inductive effect decreases with the RD input intensity increasing,suggesting that as the governmental RD investment intensity increases,crowding-out effect is more obvious.