Factors influencing technological innovation efficiency in the Chinese video game industry: Applying the meta-frontier approach

Abstract

Exploring technological innovation efficiency in China's video game industry allows us to reconceptualize the industry's state of development, identify barriers to technological innovation, and seek solutions. This study analyzed this industry's technological innovation efficiency across different regions in China using the meta-frontier approach and empirically tested the effects of human capital, financial capital, region, and policy factors using an econometric model. There were several main findings: (1) Beijing, Jiangsu, and Guangdong had higher meta-frontier technology ratios and more technological innovation efficiency, whereas Jilin and Hubei had lower ratios. Innovation efficiency in the latter regions showed more room for improvement, given the current technology level and factor input conditions. (2) Regarding group-frontier and meta-frontier technology efficiency, all regions (except Beijing) had room for improvement in the entire industry and individual companies. (3) Technological innovation efficiency fluctuated slightly across regions and over time. Beijing, Jiangsu, and Guangdong maintained high technological innovation efficiency, whereas Liaoning, Jilin, and Fujian did not. (4) A region's video game industry tended to have higher technological innovation efficiency if the industry had innovative video game practitioners who were good learners, more research and development investment, greater economic development, and better infrastructure support, among other factors.