Analysis of the Effect of Government Funds, Enterprise Funds in Industry Innovation of High-tech Industry-A view based on factor input

Firstly, by applying translog cost function and China's provincial data of 1998 to 2014, to estimate the high-tech industry innovation cost function. Secondly, this paper analyses the elastic relationship between government funds, enterprise funds and the cost of innovation; elastic relationship between government funds, enterprise funds and innovation cost share; the substitution relation between innovative personnel and fixed assets in scientific and technological activities; and government funds and enterprise funds alternative relation. The research results indicate that: (1) the impact of enterprise funds on innovation cost is relatively large, enterprise funds increased to help reduce the cost of innovation. The impact of government funds on innovation costs is relatively small. (2) Government funds, enterprise funds for innovation and investment factors cost share has the same effect. They produce positive direction on the innovation labor, and an impact in the opposite direction of fixed assets. (3) The substitution elasticity coefficient between the innovation labor and the fixed assets is greater than 1, and the innovative labor can replace the fixed assets to a certain extent. (4) The substitution elasticity between the government funds and the enterprise funds is less than 1, and the difficulty of mutual substitution between the government funds and the enterprise funds is relatively large.