The growth paths of innovation performance, stock of R&D capital, and absorptive capacity are analyzed using the system of difference equations. The results indicate that in the event of the sum of present value rate of stock of R&D capital and total contribution rate of innovation performance in the prior period to that in current period is less than one, growths of innovation performance, stock of R&D capital, and absorptive capacity are under restrictions, and speeds of their growths are getting smaller and smaller. In the event of the sum of present value rate of stock of R&D capital and total contribution rate of innovation performance in prior period to that in current period is greater than one, growths of innovation performance, stock of R&D capital, and absorptive capacity are unconstrained, and speeds of their growths are getting bigger and bigger. Furthermore, the rate of depreciation, innovation performance from other elements, contribution margin of stock of R&D capital for absorptive capacity in the same term and total contribution rate of stock of R&D capital for innovation performance in the same term also have influence on the speeds of their growths.
Key words
innovation performance /
stock of R&D capital /
absorptive capacity /
system of difference equations
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References
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