Measurement of the innovation efficiency of the Hi-tech industry in China and its influencing factors

Abstract

Accelerating the development of the hi-tech industry is a key measure to effectively implement the “Made in China 2025” strategy. In order to measure the innovation efficiency of the hitech industry, this paper establishes an evaluation index system for the innovation input and output of the hi-tech industry. Then, based on the data of the input and output variables collected, this paper uses the CCR model to measure the innovation efficiency of the hi-tech industry in 30 provinces and municipalities of China during the period of 2002-2016. At the same time, it investigates the spatial correlation of the innovation efficiency of the hi-tech industry, and empirically analyzes the influencing factors to the innovation efficiency of the hi-tech industry using a spatial measurement model. According to the results of this study, the innovation efficiency of the hi-tech industry exhibit significant provincial differences. The provinces and municipalities where the hi-tech industry is of high innovation efficiency are mainly located in the eastern coastal areas, while the innovation efficiency of the hi-tech industry in those most mid-western inland provinces and municipalities is less than satisfactory. In this paper, China is divided into three major regions - East China, Central China and West China. It is found that the innovation efficiency of the hi-tech industry in these three regions showed basically the same trend during the sample period, but with serious regional differentiation - the innovation efficiency of the hi-tech industry was the highest in the east, the second highest in the central region, and the lowest in the west. The global Moran's I index was all positive during the sample period and passed the significance level test, indicating that the innovation efficiency of the hi-tech industry in China has significant spatial correlation. The spatial LISA chart shows that the innovation efficiency of the hi-tech industry in most provinces and municipalities is located in the spatially clustered quadrants, while that in only a few provinces and municipalities is located in the spatially scattered quadrants. The results of the spatial measurement model shows that the R&D intensity, opening-up and human capital have positive effects in promoting the innovation efficiency of the hi-tech industry, that government intervention clearly hinders the improvement of the innovation efficiency and that enterprise size and industrial structure exhibit no significant effects.