R&D activities are highly valued by countries around the world for their creativity and novelty. After the introduction of the concept of R&D in the 1980s to China, Chinese scholars have never stopped the research on the effect of R&D expenditure on economic growth. This paper selects the R&D expenditures and GDP data of Guangdong Province from 2000 to 2013, studies the relationship between R&D expenditure and GDP with the help of the impulse response function in VAR model, and draws a

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... n that the R&D expenditure has a positive effect on GDP growth and GDP growth has a "lagging effect" on R&D expenditure. Finally, by analyzing the relationship between the above two, this paper also puts forward some suggestions for the government and companies with respect to their R&D expenditure. Keywords-R&D Guangdong Province; VAR model; Impulse response function I. Zhu Mingming (2013) used the impulse response function of VAR model to study R&D expenditure and regional GDP of 958