Analysis of Technical Innovation Capability for Eight Economic Regions in China

Technological innovation capability of industrial enterprises in eight economic regions in China, based on panel data between 1999 and 2006, was investigated by using the decomposing model of Malmquist productivity index. In addition, convergence of technological innovation capability was also analyzed with the same model. It was concluded that technological innovation capability of industrial enterprise is strong in Circumlittoral Region, however, technological innovation capability was found to be weak in Yangtze River downstream and Yellow River regions. It was noticed that the development of technological innovation capability of coastal regions is in "growth" mode, whereas in Northeast and western regions is in "catch-up" mode. With technology diffusion and adoption of best practices across these regions, technological innovation capability of industrial enterprise demonstrated a remarkable convergence in China.