Measuring the Innovation Efficiency in China's High-Tech Industries

Measuring the innovation efficiency of high-tech industries correctly is critical for technical gap narrows and industrial policy making which can help in improving the innovation capability. In this study, we propose a novel measurement framework based on knowledge based view and the innovation efficiency is broken down into development efficiency and transformation efficiency. To confirming this new framework, we employ stochastic frontier analysis technique and a unique panel data set of high-tech industries cross-region in China from 2010 to 2014. Results indicate that trans-log function is fit for measuring the development efficiency and Cobb-Douglas function is fit for measuring the transformation efficiency. It also provides evidences that innovation inefficiency exist in China's high-tech industries although the overall trend of efficiency is increasing.