The Effect of Firm Size on Regional Innovation Efficiency in China

HTML  XML Download Download as PDF (Size: 1273KB)  PP. 1035-1049  
DOI: 10.4236/me.2016.710106    1,622 Downloads   2,910 Views  Citations
Author(s)

ABSTRACT

The paper uses panel data of 30 provinces in China from 1998 to 2012 to calculate their innovation efficiency by DEA model. Meanwhile we use Tobit model to discuss the effect of firm size on regional innovation efficiency. In order to solve endogeneity problem, we choose an instrumental variable to replace firm size. Although from Figure 2, firm size and innovation efficiency show an inverted U-shaped relationship, at this stage enterprises in China are usually small, which leads most of them stay at the left side of inverted U-shaped curve. Our main conclusion is that at this stage in China, firm size and innovation efficiency have a linear relationship. Other variables such as dependence on trade, level of urbanization and education also have positive effect on innovation efficiency.

Share and Cite:

Mei, L. and Shao, W. (2016) The Effect of Firm Size on Regional Innovation Efficiency in China. Modern Economy, 7, 1035-1049. doi: 10.4236/me.2016.710106.
Journals Menu
Follow SCIRP
Contact us
+1 323-425-8868
customer@scirp.org
WhatsApp +86 18163351462(WhatsApp)
Click here to send a message to me 1655362766
Paper Publishing WeChat

Copyright © 2024 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.