Exploring the Relationship Between Technological Innovation Input and Economic Growth in China

A report of the 19th National Congress of Communist Party of China (2017) stated that the core of innovation-driven development is technological innovation. For finding future economic development strategies in China, based on national time-series data from 2000 to 2019, this study mainly focuses on how technological innovation input affects economic growth. A multiple linear regression model was constructed; the results showed that both research and development (R&D) fund input and personnel input play a positive role in influencing economic growth in China, and the impact of R&D expenditure is more significant than that of R&D personnel. On this basis, we found the long-term stationary equilibrium relationship between technological innovation input and economic growth by applying the unit root test and cointegration analysis. Finally, two-stage least square specification was used to eliminate issues caused by endogeneity. Based on the above conclusions, the paper proposed policy suggestions for economic growth.