Research On Composite Indicator Based On PLS Path Modeling

With the expanding and deepening research on innovation, it is necessary to quantify innovation activities for providing comparative assessment of innovation performance and establishing a benchmark, which involves empirical studies on how to measure innovations. As a multidimensional theme, innovation should be measured by composite indicators. By exploring foreign and domestic well-known innovation indicator, we find the main problems are the randomness of building indicators system and subjectivity of choosing composite evaluation method. In order to search for a new model of building composite evaluation system, taking independent innovation capacity of Hebei Province for example, this paper puts the process of constructing composite indicators and composite evaluation methods in order, which is of theoretical and practical importance.We introduce the construction of composite indicators and the choice of evaluation method, starting from the steps of constructing composite indicators, we select PLS path modeling which is thought more suitable as composite evaluation method by comparing the various limitations and the basic principle of methods.The core part of this paper is the research of region independent innovation capacity in Hebei Province, which based on PLS path modeling. We propose our concept of regional independent innovation capacity by combining many scholars'ideas on regional innovation, regional independent innovation capacity, that is, innovation investment, innovation environment, absorptive capacity, intellectual property rights and innovation production capacity. Guided by scientific, systematic, feasibility, robustness, and simplicity principles, finally we get the independent innovation capacity system of Hebei Province by means of the analysis of availability, correlation and discernment, which includes 17 indicators. Through constructing 3 PLS path modeling, we verify the efficiency of composite indicator, and under the premise of efficiency we do further analysis about the independent innovation capacity in Hebei Province, at the same time, propose corresponding measures.This paper has provided a scientific, objective and comprehensive evaluation system for construction of region independent innovation capacity in Hebei Province, thus achieve the supervision and inspection about the regional innovation system in our province, and build the public information platform for comparing the innovation ability of other provinces.