Industry Innovation Efficiency and its Influencing Factors: Evidence from Zhongguancun Science Park

Abstract

Given the importance of innovation in economic development, this paper intends to analyze the impacts of multiple factors on innovation efficiency in Zhongguancun Science Park. A two-stage analysis process is implemented. First, data envelopment analysis (DEA) is applied with several inputs and outputs relating to innovation activities. In the second stage, we regressed the efficiency scores from the first stage on the variables of interest. Results show that technological absorptive ability of an industry, external R&D funding by financial organizations and governments, and R&D cooperation among enterprises all positively and significantly affect industry innovation. Besides, it needs to encourage R&D funding by financial organizations as well as control the governmental R&D funding to an appropriate level.