An investigation of the innovation efficacy of Chinese photovoltaic enterprises employing three-stage data envelopment analysis (DEA)

Abstract

The authors found that only a few investigations have been performed on the success of Chinese PV companies in terms of inventiveness and the classic or the two-stage DEA model are the approaches utilized to assess the innovation efficacy of solar enterprises. Neither model takes into account the influence of external factors . The three-stage DEA model is adopted in this essay to find the actual impact of environmental variables on the innovation efficacy of Chinese photovoltaic entities. The real innovation efficacy value of Chinese photovoltaic enterprises is then calculated once the influence of environmental parameters on the efficacy of innovation has been accounted for. In the course of empirical research, it was discovered that the average innovation efficacy of Chinese solar-energy firms is 0.567. In addition, the average innovation pure technical efficacy is 0.829, and the median innovation scale efficacy value is 0.683; the median innovation scale efficacy value is 0.683. The poor innovation scale efficacy of Chinese solar firms is a major contributor to the low innovation efficacy of the industry. The poor innovation scale efficacy of Chinese solar firms is primarily responsible for their low innovation efficacy. Further study reveals that the size of a company’s total assets and its age have a beneficial influence on its innovation efficacy, with state-owned property rights, equity concentration, government subsidies, and Internet penetration all limiting the development of photovoltaic firms. This research aims to help photovoltaic enterprises to enhance their technological innovation inefficacy, and to provide the government ideas to implement differentiated industrial support for photovoltaic enterprises with different innovation efficiencies, so as to achieve long-term development of the photovoltaic industry.