Relationship between the development of Chinese non‐state‐owned enterprises and its cultivation of scientific and technological competence : An empirical study

Purpose – To study and validate the relationship between the development of Chinese non‐state‐owned enterprise (Chinese non‐SOE), and cultivation of scientific and technological competence empirically. Design/methodology/approach – Correlation analysis in SPSS is used to analyze the correlation between Chinese non‐SOE and cultivation of scientific and technological competence based on the statistic data released by China Statistical Bureau from 1987 to 2005. Furthermore, their relationship is validated by means of Granger causality test in Eviews 3.0. Findings – This paper finds serial GDP of Chinese non‐SOE is a first difference stationary, while serial total funds of S&T activities of Chinese non‐SOE is a second difference stationary. After they are adjusted to be difference stationary, we find that there is not only a positive correlation, but also a bilateral Granger causality between the two variables. Practical implications – From the point of view of a practitioner engaging in China trade, this study suggested that when all level governmental departments and all Chinese non‐SOE establish economic development strategies and policies for cultivating scientific and technological competence, the interaction relationship must be taken into consideration in order to avoid negative impact on the sustainable development of Chinese non‐SOE. Originality/value – This study provides reference and benchmark to Chinese non‐SOE's development and will help to enhance its international competence.