The Study Of China's Innovation Efficiency

Innovation is an important issue that our country faces now,and the innovation efficiency and innovation incentive are two directions of the issue.In this paper,we focus on the issue of innovation efficiency.Based on the famous“Schumpeter Hypothesis",we study the significance of innovation efficiency,and effects of factors like scale,ownership of firms on innovation efficiency theoretically and empirically,and we puts forward policy practical suggestions.In theoretical part,we adapt Romer's "product diversification model" and apply it to firms' profit-maximization problem,and we prove the positive effects of innovation efficiency to innovation dicision.In empirical part,we use the data of"China's industrial enterprises data base" and listed companies,to cover years before-and-after 2008,the year of financial crisis of turning point of China's economy.We use innovation efficiency as independent variable(include several settings or measurements),and firm scale,R&D,ownership as dependent variables,also use intersection term to study the cross effects of scale and ownership.We use methods of OLS regression,panel regression,logit and ordered logit to get four important and steady conclusions:1.firms' scale has significant positive effects on innovation efficiency;2.higher innovation-input company leads to lower innovation efficiency from the data;3 state-owned firms have higher innovation efficiency than non-state firms;4.non-state enterprises have relative innovation advantages,especially in heavy-industry industry,with higher scale effects of innovation efficiency;4.innovation efficiency structure did not change significantly after 2008.Based on all the study,we draw some important policy implications:encourage and support enterprises especially non-state ones to become bigger and stronger,and stimulate the upgrade of industry concentration;to the guide and support large and hard innovation;accelerate the reform of state-owned firms,and opening up more fields to private caplital to release the vitality of private investment;accelerate marketization reform,improve living environment of private enterprises.