Author(s)

Yanxiao Huang

Corresponding Author

Yanxiao Huang

ABSTRACT

Since the reform and opening up, China has made world-renowned achievements in the economic field, but at the same time, the problems of unbalanced regional economic development and widening income disparity have also plagued the further development and transformation of China's economy. The study of the relationship between the increase of income distribution inequality and the demand for innovative products of enterprises has become a subject of increasing attention of scholars. In this paper, we analyse the linear and nonlinear relationship between income inequality and innovation by constructing a multiple regression model, and the research results show that in different ranges of Gini Index, innovation varies in different trends. A non-linear regression model may be used to account for the relation between innovation and income inequality. This research points out viable directions to generate more precise predictions of how innovation will vary in the future in certain regions given current Gini Index.

KEYWORDS

Innovation, Income inequality, Gini Index, Relationship