What limits the innovation efficiency in China's ICT industry? A two-stage dynamic network slacks-based measure approach

Based on the innovation value chain theory, the innovation process of the information and communication technology (ICT) firms is not only decomposed into R & D and commercialisation activities, but also its dynamic characteristics should be included in the evaluation system. To seek the underlying reasons for the inefficiency, a two-stage dynamic network DEA model within the SBM structure has been applied to assess the innovation efficiency along with the R & D capability and commercialisation performance. The results show that the innovation efficiency of the Chinese ICT industry shows a continuous decline due to the constraints of firms' R & D capabilities. Similarly, the heterogeneity exists within the ICT industry; The four sub-industries has its own strengths, but they also exhibit high market efficiency and low R & D efficiency. Private companies show a higher level of R & D and commercialisation than SOEs in both stages.