Abstract: By the comparison of different methods, Input-Output(I-O) analysis is selected to measure the effects of R&D activities, including total beneficiary effect, total contributor effect, and inter-industry effect of R&D spillover. The effect of inter-industry R&D spillover in manufacturing of China is calculated based on the data of input-output coefficients and R&D expenditures in the years of 2002, 2005, and 2007. And then, the result shows that horizontally, the beneficiary effects of light textile manufacturing and resources processing industry are obvious, while the contributor effect of mechanical electron industry is great; vertically, the effect of inter-industry R&D spillover changes constantly, however it has the certain stability. The conclusions provide the theory basis for the government to optimize the orientation of R&D investments and adjust the structure of R&D investments dynamically.

Key words: I-O analysis, R&D spillover, manufacturing, beneficiary effect, contributor effect