The Interactive Relationship between Sci-Tech Innovation and Economic Growth: An Empirical Study Based on China Macroeconomic Data

In the past decades, China has embraced a rapid development in its economy. And the sci-tech innovation has also gained unprecedented prosperity during the period. The progress in sci-tech innovation has boosted larger output in multiple industries of China, and thus having great contributions to the dramatic improvement in China’s economy. The studies on the relationship between sci-tech innovation and economic growth has long been existed, however, most of which only focus on the one-way research, namely the effects of sci-tech innovation on the economic growth. Based on this status quo, this paper innovates from the research method to focus on the interactive relationship between sci-tech innovation and economic growth, establishing a VAR model to analyze their immediate structural relationship and long-term dynamic relationship, and finds out that the effects of sci-tech innovation on economic growth are immediate positive, while those on sci-tech innovation achievements appear in the long run. In the last part, this paper puts forward policy suggestions on the maximization of sci-tech innovation and economic growth based on the results.