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Can innovation really bring economic growth? The role of social filter in China

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  • Xiong, Ailun
  • Xia, Senmao
  • Ye, Zhen Peter
  • Cao, Dongmei
  • Jing, Yanguo
  • Li, Hongyi

Abstract

This study explores the relationship between R&D investment and economic growth in China, using a newly collected panel data set. Specifically, we investigate how social filters are connected to R&D output. Instead of linking R&D investment directly to economic performance, we adopt a two-step strategy which identifies the impact R&D investment on R&D output, and then study the causal links between R&D output and economic development. Our results suggest that the relationship between R&D input, R&D output and economic growth diverges by different region and sectors. Most of positive associations stem from non-peripheral regions and non-state owned sectors. Social filters are also more effective under these circumstances. These results reveal the complexity of relationships between R&D efforts and economic performance and point to the important role of social filters in innovation and growth.

Suggested Citation

  • Xiong, Ailun & Xia, Senmao & Ye, Zhen Peter & Cao, Dongmei & Jing, Yanguo & Li, Hongyi, 2020. "Can innovation really bring economic growth? The role of social filter in China," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 50-61.
    • Handle: RePEc:eee:streco:v:53:y:2020:i:c:p:50-61
    DOI: 10.1016/j.strueco.2020.01.003
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