The Effects of Government Innovation Investment on the Development of Computer Industry

The transformation of economic model from investment-led development to innovation-led development indirectly reflects the will of high-quality development goals. As an economically strong province in China, Guangdong stands at the foremost position of reforms. This paper examines the effectiveness of government innovation investment on the industrial agglomeration in manufacture of computer industry (computer, communication and other electronic equipment) and high-quality economic development in Guangdong. The main conclusions are as follows: (1) Government innovation investment has a significant positive impact on the industry development. The positive effect of the industrial agglomeration on economic growth needs to be interposed by government innovation investment, but there is no impact on technological progress. (2) we found that government innovation investment and industry agglomeration have a direct and significant positive impact on economic growth, while only government innovation investment promotes technological progress. This shows that there is an inefficiency problem in the industrial agglomeration, and increasing government innovation investment is conducive to promoting technological progress.