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Thermally-annealed InGaN quantum wells (QWs) with various interdiffusion lengths (Ld) are numerically analyzed as improved active region for Light-Emitting Diodes (LEDs). The calculations of the band structure, wavefunction for electrons and holes are based on a self-consistent 6-band k·p method taking into account the valence band mixing, strain effect, spontaneous and piezoelectric polarizations and carrier screening effect. The spontaneous emission radiative recombination rate (Rsp) was calculated for thermally-annealed 3-nm In0.25Ga0.75N QWs with various interdiffusion lengths (Ld), as compared to that of the conventional InGaN QWs emitting at the similar wavelength. Studies show that the electron-hole wavefunction overlap is significantly enhanced for the thermally-annealed InGaN QWs, which results in the improved spontaneous emission radiative recombination rate for enhancing LED output power.