An empirical analysis on the efficiency of S&T activities of large and medium-sized industrial firms in Guangdong Province of China

This paper constructs a cross-city data from 2001-2006 of all 21 cities in Guangdong Province for evaluating the relative efficiency of science and technology (S&T) activities of Large and medium-sized industrial firms, using stochastic frontier approach based on panel data, and further divides Guangdong province into three main regions (the Pearl River Delta region, the East-West wings region and the northern mountain region) to research the regional differences of S&T efficiency on there firms. The results show that the average efficiency of the relative S&T activities of large and medium-sized industrial firms in Guangdong Province is merely 0.6192, and it is getting decreasing yearly. The results also show that comparing the three regions, the Pearl River Delta region has the best efficiency performance, and the East-West wings region seconds, then the northern mountain region has the lowest efficiency. Finally, this paper raises some policy suggestions for the three separate regions to improve the S&T efficiency.