Abstrait

Crowding-in or crowding-out effect of S&T input of government on R&D expenditure of enterprise in China

Zhang Dan1, Wu Daoyou

Current conclusions about the effect of the government S&T input on the enterprise R&D expenditure are inconsistent, including crowding-in and crowding-out, and the reason may lie in shorter lag phase selected by the model (i.e. one year) and neglecting the influence of other factors. With consideration of the rapid development of GDP and longer lag phase of the S&T input policy in China, the paper brings in GDP as a moderating variable and selects a two-year lag phase to build a dynamic panel data model for analysis. The results show that a large amount of direct input in S&T resources of the government can not improve the enterprise R&D expenditure in current year and the next year, but will generate crowding-out effect on the enterprise R&D expenditure in the third year; the higher the GDP growth rate is, the weaker the crowding-out effect of the government S&T input on the enterprise R&D expenditure is. However, informatization level and hitech industry development have no significant moderating effect on the relationship between the government S&T input and enterprise R&D expenditure.