Research On The Threshold Effect Between Firm Size Quality And Technological Innovation Efficiency

In the era of knowledge economy,technological innovation will have a great effect on the economic growth of the country and the survival and development of enterprises.Growth of firm size may be either expansion in quantity or improvement in quality.However,improvement in quality is the key to achieving technological innovation.The paper exploits the content of firm size in terms of quality.In particular,the paper measures the firm size quality on technological innovation in terms of the R&D investment,non-R&D investment and knowledge energy,which is more general and theoretical depth than firm size in quantity on technological innovation.Although there are a lot of researches on firm size on technological innovation,there is little on firm size quality on technological innovation.In addition to the lack of a clear understanding of the scope of the firm size quality,a lack of method is also one of the important reasons.This study will use a threshold regression model of panel data of 27 provinces on high-tech industries in China from 2003 to 2013,explore the firm size quality on regional difference of technological innovation efficiency,and examine the threshold effect of firm size quality on technological innovation efficiency.Compared with previous papers,the paper is extended from three aspects.First,the paper utilizes Malmquist index method based on DEA to disaggregate,evaluates and tests the technological innovation efficiency.Secondly,the paper reduces dimensionality of the R&D investment,non-R&D investment and knowledge energy into firm size quality with Factor Analysis.Finally,the paper examines the threshold effect of firm size quality on technological innovation efficiency.The research finds out that there exists triple thresholds effect of firm size quality on technological innovation efficiency.When firm size quality is less than 0.7,there is a positive correlation between firm size quality and technological innovation efficiency but the estimated coefficient of firm size quality variables is not significant.When firm size is between 0.7 and 0.86,there is a positive correlation between ffirm size quality and technological innovation efficiency and the estimated coefficient of firm size quality variable is 2.502.When firm size is between 0.86 and 0.89,there is a positive correlation between firm size quality and technological innovation efficiency and the estimated coefficient of firm size quality variable is 0.558.When firm size is large than 0.89,there is a positive correlation between firm size quality and technological innovation efficiency and the estimated coefficient of firm size quality variable is 0.758.Further analysis revealed a threshold effect in the relationship between firm size quality and technological innovation efficiency.Moreover,different firm size quality intervals are shown to have different roles and influences on technological innovation efficiency.The result proves the forecast that there is a positive correlation between firm size quality and technological innovation efficiency.And triple thresholds effect of firm size quality on technological innovation efficiency get empirical support and realistic basis of components of firm size quality-R&D investment,non-R&D investment and knowledge energy,which proves the rationality of components of firm size quality.The main contribution of the paper reveal the firm size quality and technological innovation efficiency.That helps to find a new rule to improve the technological innovation.Thus presenting concrete proposals to meet the China's firm size quality adjustments.And it provides theoretical guidance in order to improve our country's regional technological innovation ability of our country.