Technological Innovation Efficiency of Provinces in China-Two Stages Stochastic Frontier Analysis

This paper used the two stages stochastic frontier analysis to estimate the innovation efficiency of provinces in China from 2004 to 2011 and divided the technological innovation into two stages. The research finds that: (1) In the stage of knowledge innovation, the inefficiency term of the combined error is a large proportion, which shows that the efficiency of knowledge innovation is very low. (2) In the first stage, the efficiency of output of knowledge innovation is rising, and the efficiency of output of science and technology is increasing every year in second stages. (3) The average efficiency of output of knowledge innovation is basically consistent with the average efficiency of output of science and technology. It shows that is necessary to pay more attention to the effectiveness and the rational use of resource allocation of technological innovation to enhance the efficiency of technological innovation.