Nonlinear Effect of Scientific and Technological Innovation on Economic Development Based on Spatial Panel and Threshold Model

Against the background of "strengthening a country through science and technology", the problem of how to promote scientific and technological innovation to effect economic development is of great importance. In order to explore the action mechanism of scientific and technological innovation on economic development, based on the relevant data of 29 provinces, municipalities and autonomous regions in China from 2007 to 2016, this paper adopts the spatial panel regression model and the threshold panel regression model to inspect the non-linear spatial relationship between science and technology and economy. The results show that there is a significant spatial dependence of scientific and technological innovation on economic development in China, and the spatial Durbin panel model is the best research model. Scientific and technological innovation, financial development, opening up and government investment have posed significant positive spatial spillover effects on the economy of neighboring provinces. Human capital and opening up have played a significant role in provincial economy, but it has posed a significant negative effect on the economy of neighboring provinces through the "resource closure effect". The impact of scientific and technological innovation on economic development has obvious threshold effect of opening up and financial development. Hereby, the paper puts forward some countermeasures that promote scientific and technological innovation to influence economic development. Keywords—scientific and technological innovation; economic development; spatial spillover effect; threshold model