At the first, the actual expenditure data of R&D activities in China and USA are compared. Then, the utility function theory has been used to explore how these two countries allocate the R&D funds for the scientific research (including basic and applied researches) and development. It is concluded that the serious shortage of investment in scientific research, meanwhile the investment in experimental development is relatively high in China. The situation is different in USA. In the R&D activities of federal employees, the investment in scientific research is relatively high, in the meantime the investment in the experimental development is relatively low compared with China. However, the expenditure structure in the overall scientific research and experimental development might be more reasonable for the R&D activities of whole researchers and engineers.
Key words
utility /
Cobb-Douglas function /
scientific research /
experimental development
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References
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