Regional innovation efficiency of China and its influencing factors

Based on the panel data of China´s 30 regions during 1998-2005, this study conducted an empirical analysis on the regional innovation efficiency of China by using the stochastic frontier production function. Our results show that there is a distinct positive correlation between the educational level of workers and the region´s innovation efficiency, and there is a distinct negative correlation between the industrial structure and the region´s innovation efficiency. R&D human resources investment has a higher output elasticity compared to the R&D capital expenditure. The innovation efficiency of various areas showed a steady up-trend, and it was more closely related to the development of regional economy. The regional innovation efficiency has a tendency of convergence, indicating that the laggard regions are catching up with the advanced region.