A lag analysis of R&D investment driving economic growth using grey relational model

The method of grey relational analysis is employed to establish a time lag analysis model which incarnates R&D investment driving economic growth in Jiangsu Province. The result shows that the time lag on R&D investment driving economic growth is about three years in Jiangsu Province, China. As time goes by, the driving force shows a downward trend. There is an obvious benefit-tendency in Jiangsu R&D activity. With the long-term consideration of the science and technology strategy, it is necessary to continue increasing the total amount of R&D investment, and to put emphasis on the development of fund investment on different research character.