Stochastic Frontier Analysis on the Regional Innovation Efficiency of China
Junhong Bai
Abstract
Junhong Bai
Abstract
The efficiency should be given a key attention in China's scientific innovation process.Based on the RD panel data of Chinese 30 provinces during 1998-2005,making the patent as the innovation output index,and making the RD funds expenditure and RD personnel as the innovation input index,using the stochastic frontier production function,this article takes an empirical analysis on the regional innovation efficiency of China.The main conclusion includes: there is a positive correlation between the patent output and the RD funds expenditure,so as the RD personnel invest,and the RD personnel invest has a higher output elasticity compared to the RD funds expenditure;there is a distinct positive correlation between the educational level of workers and the region innovation efficiency,while there is a distinct negative correlation between the industrial structure and the region innovation efficiency;the innovation efficiency of various areas present a steady-up trend,and it gets closer and closer to the development of provincial economy;the regional innovation efficiency has a converging tendency,and the pursueing effect of the less advanced area is obvious.
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The efficiency should be given a key attention in China's scientific innovation process.Based on the RD panel data of Chinese 30 provinces during 1998-2005,making the patent as the innovation output index,and making the RD funds expenditure and RD personnel as the innovation input index,using the stochastic frontier production function,this article takes an empirical analysis on the regional innovation efficiency of China.The main conclusion includes: there is a positive correlation between the patent output and the RD funds expenditure,so as the RD personnel invest,and the RD personnel invest has a higher output elasticity compared to the RD funds expenditure;there is a distinct positive correlation between the educational level of workers and the region innovation efficiency,while there is a distinct negative correlation between the industrial structure and the region innovation efficiency;the innovation efficiency of various areas present a steady-up trend,and it gets closer and closer to the development of provincial economy;the regional innovation efficiency has a converging tendency,and the pursueing effect of the less advanced area is obvious.
Key concepts: Output elasticity, Frontier, Stochastic frontier analysis, China, Panel data, Index (typography), Economics, Positive correlation