Innovation Efficiency and Determinants in Chinese High-Tech Industry

This paper presents an empirical study of the innovation efficiency in Chinese high-tech industry and its subdivision determinants, based on the panel data of 17 individual four-digit high-tech industries from 1996 to 2007 and the methods of Malmquist-Tobit. The results indicate that technological progress promoting the innovation efficiency level while technical efficiency are completely offset this trend cause a reduced innovation efficiency in the whole. In-depth analyze find that pure technical efficiency and scale efficiency has different influence of inefficient in micro industry. Industry concentration degree and Government funds significantly improve the innovation and technical efficiency with Government funds hindered technology progress at the same time. The degree of Market-oriented put significant positive effects on technological progress. Foreign direct investment have positive effect on innovation efficiency but not stable.