Innovation efficiency of Chinese manufacturing industry from 2003 to 2008— Based on SFA method

Using SFA(Stochastic Frontier Analysis) method, the paper conducts an empirical study on the innovation efficiency of China´s manufacturing industry and its relevant factos. The findings of the research are as follows: the innovation output of the China´s manufacturing sectos is mainly driven by sceitific funds; the innovation advantages of the manufacturing industry concentrates mainly in labor-intensive and highly monopolistic areas while in the capital-intensive and tech-oriented sectors the innovation efficiency remains low; the industry scale, the openess of the industry, the profit of the industry exert apparent positive influence on the innovation efficiency of the manufacturing sector while the market structure has apparent negative correlation with the increae of the innovation efficiency. Therefore, in order to raise the innovation efficiency of the manufacturing industry of China, it is imperative to pursue institutional innovation; and it is also important to raise the concentration intensity of the industry,and establish large conglomerate industrial groups, and allocate sufficient supporting funds. It is also necessay to further open the industry adequately.