## 3 Empirical Research
### Data Sources and Processing
#### 3.2.2 Calculation of the Stock of Funds  
In this paper, the perpetual inventory method (PIM method) is used to calculate the depreciation of research and development expenditures in the high-tech manufacturing industry in each province to obtain the stock of research expenditures and the stock of development expenditures, respectively. Research funding stock measurement formula:  
\[K_{t}=(1-\delta)K_{t-1}+l_{t-2} \tag{11}\]  
where \(K_{t}\) is the stock of research funding in period t, \(\delta\) is the rate of depreciation of the stock of research funding, \(K_{t-1}\) is the stock of research funding in period t \(-\)1, and \(l_{t-2}\) is the constant-price research expenditures, lagged by two periods relative to period t.  
The development of a formula for measuring the stock of funds:  
\[C_{t}=(1-\delta)C_{t-1}+R_{t-1} \tag{12}\]  
where \(C_{t}\) is the stock of development expenditures in period t, \(\delta\) is the depreciation rate of the stock of development expenditures, \(C_{t-1}\) is the stock of development expenditures in  
Figure 2: Structure of innovative R&D activities in the high-tech manufacturing industry. period \(t-1\), and \(R_{t-1}\) is the expenditure of development expenditures at constant prices, lagged by one period relative to period \(t\). The above formula shows that to estimate the stock of appropriations, it is necessary to know the constant-price appropriation expenditures discounted by the appropriation price index, the rate of depreciation of the stock of appropriations, and the stock of appropriations for the base period. 1 Expenditure on constant-price provision  
In order to eliminate the effect of data incomparability across periods due to price changes, this paper treats the data with a constant price, and the constant-price treatment uses the provision price index (PI). Drawing on the experience of [PERSON] [30], who set the provision price index as the weighted average of the price index of the personnel labor cost (consumer price index (CPI)), the price index of the daily expenditure on non-personnel labor cost (consumption of raw materials (MPI)) and the price index of investment in fixed assets (IPI), we constructed the price index of provisioning expenditure in China's high-tech manufacturing industry. The specific formula for the price index is shown below. \[PI=a\times CPI+b\times MPI+c\times IPI \tag{13}\]  
According to the _China Science and Technology Statistical Yearbook_, published by the National Bureau of Statistics, set a = 0.4, b = 0.3, and c = 0.3, thus obtaining the price index of funding expenditures for each year, as shown in Table 2.  
Thus, it is possible to obtain the annual constant-price expenditure of each province, including constant-price research expenditure and constant-price development expenditure, according to the specific solution formula below. \[\text{Fixed price expenditure}=\frac{\text{expenditure}}{\text{Expenditure price indices}}\]  
2 Depreciation rate of provision stock  
After analyzing the commonly used methods for determining depreciation rates, [PERSON] suggested assuming the depreciation rate of the fund stock as a fixed value [31]. This article combines the relevant literature and does not consider the impact of changes in the depreciation rate of the funding stock on the calculation of the funding stock. It sets the depreciation rate for both the research funding stock and development funding stock at 15%, that is, \(\delta=15\%\). 3 Stock of funds for the base period  
It is assumed that the growth rate of the funding stock is equal to the growth rate of funding expenditures:  
For measuring the stock of research funding, we have \(\frac{K_{t}-K_{t-1}}{K_{t-1}}=\frac{I_{t}-I_{t-1}}{I_{t-1}}=h\), which is the average growth rate of I. The stock of research funding in the base period can be calculated as \(K_{0}=\frac{I_{0}}{h+\delta}\).