Distribution and Evolution of Industrial Innovation Efficiency

We propose a two-stage model of Data Envelopment Analysis (DEA) to assess the innovation efficiency of the innovative effort for Chinese industries. The first stage is to measure the technology efficiency and the second is to measure the economy efficiency. The integral stage is the combination of the two stages and to evaluate integral efficiency for the whole innovative process. For different evaluating purposes, two kinds of DEA models, namely CCR and BCC, are used to measure the innovation efficiency and analyze evolution of innovation efficiency of Chinese Industries during the recent years, respectively. The results indicate that most of Chinese industries have a relative high efficiency in the first stage, however, and a low efficiency in the second stage. Mediocre efficiency occurs for most of Chinese industries in the integral stage. This reveals there are some serious inconsistencies between technology capability and economic performance in most Chinese industries and their capability of transforming technology efficiency to economy is relatively poor. Research results further show that there is still much room for Chinese industries to improve their innovation efficiency. The findings reveal that the heavy investment in R&D alone can neither bring high S&T output, nor competitive advantages.