INDUSTRIAL ENTERPRISES' INNOVATION EFFICIENCY AND THE INFLUENCE OF CAPITAL SOURCE: BASED ON STATISTICAL DATA OF INDUSTRIAL ENTERPRISES IN JIANGSU PROVINCE

Abstract

This study chooses industrial enterprises with great innovative capacity and above a designated size in Jiangsu as the research object to examine the real mechanism of their innovative activities. We apply the DEA model to calculate the technical efficiency, technical progress, and total factor productivity (TFP) of industrial enterprises from 1999 to 2009, finding that technical progress is the most significant factor in increasing TFP. In order to ensure the efficient flow of capital and labor, the empirical results of this study provide useful evidence to promote the industry frontier technical progress and to improve the average efficiency level.