Research on the Coupling between the Double Cycle Mode and Technological Innovation Systems: Empirical Evidence from Data Envelopment Analysis and Coupled Coordination

Abstract

China is striving to build a new dual-circulation development pattern with the aim of leading the coupling of science, technology, and innovation through the active role of financial factors, ultimately promoting the country’s optimal economic development. As a result, this paper constructs a coupled dual-circulation-STI (scientific and technological innovation) relationship model. The domestic and foreign components of the input–output relationship are used to portray the extent of the dual circulation, combined with Index DEA to measure the quality of science and technology innovation under the role of financial factors and the coupled coordination model to analyze the intrinsic correlation between the two. The study used an Index-DEA and value chain analysis model to measure each industry’s technological effectiveness and the degree of internal and external circulation, respectively. The coupled coordination model approach was used to measure the coordination relationship between the double-loop model and technological innovation. Based on the coordination assessment table, the degree of coupling and the natural state of science and technology innovation and dual cycle in each industry were assessed. The study found that the country’s dual-circulation pattern gradually strengthened from 2015–2019, with the financial element also driving an increase in STI. However, due to the twists and turns of the external environment, the coupling power of the dual-circulation STI weakened in some years. On this basis, the paper concludes that the quality of STI, driven by financial factors, has been increasing year on year, and the coupling with dual circulation has been trending upwards. Regarding policy implications, developing countries such as China should continue to invest more financially to create a healthy and sustainable innovation model. Through the innovation-dual-circulation development model, the country should eliminate the sloppy development model in construction and use the power of science and technology to lead social progress.