Regional innovation efficiency of China and its influencing factors

Abstract

Based on the panel data of China's 30 regions during 1998–2005, this study conducted an empirical analysis on the regional innovation efficiency of China by using the stochastic frontier production function. Our results show that there is a distinct positive correlation between the educational level of workers and the region's innovation efficiency, and there is a distinct negative correlation between the industrial structure and the region's innovation efficiency. R&D human resources investment has a higher output elasticity compared to the R&D capital expenditure. The innovation efficiency of various areas showed a steady up-trend, and it was more closely related to the development of regional economy. The regional innovation efficiency has a tendency of convergence, indicating that the laggard regions are catching up with the advanced region.