The role of science and technology innovation in the economic growth of mineral industry: the theory and empirical research

Schumpeter Growth Theory is that the endogenous Research and development (R&D) and innovation in economic system is crucial to promoting economic growth.The mechanism is that the enterprises innovate in order to get monopoly profits,so they increase investment in research and then promote technology innovations,in the end they produce new products and methods to occupy the market and achieve monopoly profits,thus promote economic growth.In China,the ability of science and technology innovation in mineral industry is in the stage of steady growth.Based on the time series data of indicators of science and technology innovation and mining economic growth in China from 2004 to 2014,this paper investigated the interaction between science and technology innovation and economic growth in mineral industry through VAR model,Impulse response and cointegrationtest.Results indicate:The mining economic growth could push up science and technology innovationin mineral industry both in short and long term;however,in short term,the science and technology innovationin mineral industry cannot significantly promote the economy,but in long term it definitelywill.