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A Test on the Regional Innovation Efficiency Considering Spatial Effects

Qingmei Tan

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Abstract

Based on the panel data of 30 provinces in China during 1998-2007,using the stochastic frontier production function,it makes an empirical analysis on the regional innovation efficiency of China considering spatial effects.Research conclusions illustrates that Chinese innovation production has a decreasing scale return,and RD personnel input has higher output elasticity than RD funds expenditure;spatial effects has a significant positive effect on region innovation efficiency,and RD activities of adjacent regions play a positive role in the region;among the control variables,educational level of workers and the infrastructures have positive correlations with region innovation efficiency,while industrial structure has a significant negative correlation.It provides policy basis for national and regional innovation.

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What this paper is about

Based on the panel data of 30 provinces in China during 1998-2007,using the stochastic frontier production function,it makes an empirical analysis on the regional innovation efficiency of China considering spatial effects.Research conclusions illustrates that Chinese innovation production has a decreasing scale return,and RD personnel input has higher output elasticity than RD funds expenditure;spatial effects has a significant positive effect on region innovation efficiency,and RD activities of adjacent regions play a positive role in the region;among the control variables,educational level of workers and the infrastructures have positive correlations with region innovation efficiency,while industrial structure has a significant negative correlation.It provides policy basis for national and regional innovation.

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Available abstract

Based on the panel data of 30 provinces in China during 1998-2007,using the stochastic frontier production function,it makes an empirical analysis on the regional innovation efficiency of China considering spatial effects.Research conclusions illustrates that Chinese innovation production has a decreasing scale return,and RD personnel input has higher output elasticity than RD funds expenditure;spatial effects has a significant positive effect on region innovation efficiency,and RD activities of adjacent regions play a positive role in the region;among the control variables,educational level of workers and the infrastructures have positive correlations with region innovation efficiency,while industrial structure has a significant negative correlation.It provides policy basis for national and regional innovation.

Key concepts: Output elasticity, Panel data, Frontier, China, Stochastic frontier analysis, Production (economics), Economics, Positive correlation

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