Measurement of Innovation Efficiency in China’s Electronics and Communication Equipment Manufacturing Industry-Based on Dynamic Network SBM Model

Abstract

In recent years, China’s electronics and communication equipment manufacturing (ECEM) industry has overgrown, and the government should assess the innovation performance of the industry for its sustainable development. However, most previous studies on the innovation efficiency of the ECEM industry have ignored the link and carry-over variables. This paper uses the number of patent applications as a link variable to consider the stage of innovation activities. It divides the innovation activities of the electronics industry into two stages: technology development and results in transformation. To consider the dynamics of innovation activities, this paper uses capital stock as a period carry-over variable and evaluates the change of innovation efficiency over time. In this paper, the DNSBM model is used to measure the innovation efficiency of the ECEM industry in 26 Chinese provinces from 2013–2019. This model includes both stage link variables and period carry-over variables, thus allowing for overall efficiency and stage efficiency and period efficiency. The results show that the overall innovation efficiency values in the Chinese ECEM industry are low, there are considerable differences between the two-stage efficiency values in the east, central and western regions, and the overall efficiency values show a slow upward trend.