Academic journal article Journal of Emerging Trends in Economics and Management Sciences

Comparative Studies on Efficiency of China's Regional Innovation System on the Basis of Cooperation Measurement Model

Academic journal article Journal of Emerging Trends in Economics and Management Sciences

Comparative Studies on Efficiency of China's Regional Innovation System on the Basis of Cooperation Measurement Model

Article excerpt

Abstract

In this paper, taking an advanced economics standpoint, we specify the concept of synergy degree as the basis to the discussion of regional innovation system. Few literatures analyze the efficiency of regional innovation system from the angle of synergy effect between initial R&D technology stage and final commercial technology stage. Super efficiency data envelopment analysis is applied to calculate the efficiency of 27 selected provinces in China over 3 individual periods from 1998 to 2006. Then, a cooperation measurement model is introduced to measure the synergy degree between two sub-technological stages. We divided 27 provinces into four synergy categories to further measure correlation between each stage and the whole innovation stage. On the basis of the comparison of the efficiency of the whole innovation system and the synergy degree, the empirical results illustrate that most Chinese regions are still in the low efficiency and the cooperation level of each stage is relatively low. Finally, some policy suggestions are recommended accordingly.

Keywords: regional innovation system, two-stage innovation production process, super efficiency DEA, cooperation measurement model, synergy degree

(ProQuest: ... denotes formulae omitted.)

INTRODUCTION

Looking back upon the past 30 years, China's science and technology process has experienced a dramatic change from planned economy to a market-oriented economy. Because of historical reasons, there are huge imparities in the S&T efficiency among Chinese regions, especially the economy gap from eastern regions to western regions. Since China joined the WTO in 2001, the high growth of national economy has also changed the relationship of central government and local regions. The regional provinces now become relatively independent on central government. Each province contributes more to local innovation efficiency and to the harmonious national economy. In 2006, Chinese government launched the S&T strategy called "National medium and long-term science and technology development plan". In this outline, the government wanted to enhance the S&T innovation efficiency to support the social and economy of the whole nation. For the development of the regional innovation capability, the provinces within regions need to strengthen their ability in the digestion, absorption and recreation of the introduced technology. However, China's innovation system has stretched over 34 provinces, the inequities between regional S&T and economy still exist.

In traditional research, the regions that have better technological resources may consider to own a higher innovation capability. However, some other researches turned the different way. Using the Cobb- Douglas production function as the research framework, and after analyzing the postal inquiry collected from 11 European regions, Fritsh (2004) found out there are significant differences of R&D efficiency within the 11 regions. Those regions with lower level of urbanization can also have relatively high output elasticity. The relation of cooperation and efficiency of R&D activities are discussed. Relevant research in Zabala-Iturriagagoitia (2007) illustrated that the amounts of technological resources are significant to the regional innovation system, and there is no evidence to show that the region that have a larger technological resources perform better in making profits. The cooperation within the innovation system may lead to a higher technological level of a region.

All the previous researches have mainly focused on the analysis of the efficiency of regional innovation system, while they neglect the cooperation between the technological development stage and technological application stage. The intermediate variables between the two-stage innovation systems that seems like a black box need to be revealed, yet little attention was diverted to the intermediate variables embedded in the two-stage innovation system. …

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