Regional Innovation Systems Based on Stochastic Frontier Analysis: A Study on Thirty-One Provinces in China

Abstract

This article summarises the literature on regional innovation system (RIS) The study uses thirty-one Chinese provinces and cities as the unit of analysis. Subsequently, an empirical study is conducted using stochastic frontier analysis on unbalanced panel data covering 31 provinces. The empirical result shows that innovation performance of RISs differs greatly in the various provinces and cities analyzed. The average score of the national regional innovation performance is 0.4514, indicating that non-efficiency is very common in Chinese provinces and cities. There are various factors that should be considered to promote innovation performance of the RIS. These are openness of RISs, maturity of the technology market, collaboration of RISs and intellectual property protection. Interestingly the unique circumstances of the Chinese market show that enterprise technology input and government investments have a negative impact on the regional innovation performance.