An Application Model of the Measurement of Scientific & Technological Innovation Effectiveness in Industrial Sectors

Scientific and technological innovation has been a focal issue concerned by governments, industrial sectors, enterprises and academic circles. How to measure its effectiveness deserves our study. In this paper, the authors believe that traditional production function method views scientific and technological innovation as a independent factor separated from capital and labor and considers that capital and labor only increase in quantity and ignores the qualitative change resulted from such innovation, all of which does not meet the real situation and the characteristic of scientific and technological innovation. The improved method of C-D production function that this paper proposes can reflect the contribution of such innovation through capital and labor. It is an improvement of the application of production function.