Calculating regional innovation efficiency and factor allocation in China: the price signal perspective

Abstract

ABSTRACT Based on the improved HK model, we use data on Chinese listed companies and incopat invention patents from 2015 to 2020 to estimate the monetary value of invention patents in terms of price signals. We also measure innovation efficiency and resource allocation at the regional level. The results indicate that the average value of each invention patent is 837 900 yuan, with an average value for each enterprise of 23.86 million yuan. Regionally, the eastern region has the highest innovation efficiency, which is 3 and 3.42 times that of the central and western region, respectively. Further, we calculate the results by province and industry and divide them into three types: seeking progress in stability, accelerating catch-up and structural adjustment according to the innovation characteristics, and put forward targeted development plans for different types of province and industry. Finally, we explore the factors influencing innovation efficiency and resource allocation of enterprises in different regions from the aspect of innovation policy and enterprise characteristics. We find that government subsidies can promote the innovation ability of inland enterprises, and enterprises with certain scale and long survival times may have stronger innovation ability.