Empirical Study on the Contribution of Technological Innovation to the Economic Growth in China

In order to discuss the relationship between technological innovation and economic growth in China, this paper presents an empirical Study according to the sample with the corresponding data from 1990 to 2007 in China. With the Granger Causality test, the results show that technological innovation Granger causes economic growth at the Critical Values of 1% level. With the unit root test, the results show that the time series are stable after 1st difference, With co-integration test, the results show that there is a long-term stable equilibrium relationship between technological innovation and economic growth. If technological innovation increases by I percent, the economic will increase by 0.59 percent. Technological innovation plays an important role on economic growth.