The Relationship between University Innovation Ability and National Economic Growth based on Multinational Empirical Analysis

DOI:10.21742/AJEMR.2019.4.3.05

AUTHORS

Achmad Alamsyah,Universitas Muhammadiyah, Yogyakarta Yogyakarta, Indonesia

Hendry Ratna,Universitas Muhammadiyah, Yogyakarta Yogyakarta, Indonesia

ABSTRACT

This article discusses the important issue of university innovation ability and national economic growth through empirical methods. This article examines the relationship between university innovation ability and unit labor output from three aspects: university R&D funding input, university R&D personnel density, and government financial support for higher education. The research results show that: the enhancement of a university's innovation ability is conducive to the increase of unit labor output and is conducive to long-term economic growth. The quantile coefficient of university R&D expenditure first rose and then fell; the contribution coefficient of R&D personnel density to the increase in unit labor output continued to increase. There is a U-shaped relationship between the degree of government financial support for higher education and economic growth. On the one hand, enhancing the sources of funding for running schools through multiple channels will help colleges and universities to form a more effective interaction mechanism with society, and enhance the innovation vitality and motivation of their universities. On the other hand, due to the high-risk, unpredictable and long-term nature of innovation activities, the innovation activities implemented by universities have higher sunk costs than enterprises. Both scientific research and personnel training require continuous high investment.