CSSN-Correlation Analysis of Chinese Hi-tech Industries Measure of Innovation Input and Output

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Correlation Analysis of Chinese Hi-tech Industries Measure of Innovation Input and Output

Author : Source : The Journal of Quantitative & Technical Economics No.1(2014) 2014-01-07

Abstract: This paper examines the causal relationships between the logarithms of real innovation input （Expenditure on R&D or Expenditure on new Products Development） and real innovation output (Sales Revenue of New Products or Patent Applications in 5 industries for the period 1995- 2011.A new panel causality analysis is used which is based on SUR systems and Wald tests with industry specific bootstrap critical values. The results indicate one-way causality from innovation output to innovation input in Manufacture of Computers and Office Equipments, one-way causality from innovation input to Patent Applications in Manufacture of Medical Equipments and Measuring Instrument,one-way causality from Expenditure on new Products Development to Patent Applications in Manufacture of Medicines,while in the case of the other industries there is no evidence of causal relationships in either direction. Our findings provide important policy implications for 5 industries being studied.

Key words: Granger Causality, Panel Data, Bootstrap, Hi-tech, Expenditure on R&D

Editor: Yu Hui