Abstract: Even though R&D is acknowledged that they are inherently investment in nature, R&D expenditures are treated as intermediate consumption or final consumption rather than as investment In GDP accounting, which denies the role of R&D in economic growth and seriously contradicts the national emphasis on research and development innovation to some extent. This paper firstly states some relevant concepts about R&D capitalization, and then capitalizes R&D expenditures of Zhejiang province. The empirical analysis proves that R&D capitalization has a great influence on GDP, GDP growth rate and the contribution rate of investment and consumption. Some advices are presented in the end.