Relative Efficiency of R&D Capabilities in China Based on DEA Approach

This study utilizes data envelopment analysis (DEA) method to evaluate the relative efficiency of R&D capabilities among 31 provinces in China. R&D expenditure and R&D personnel are regarded as R&D inputs while patents granted and academic papers are considered as R&D outputs. The research result indicates that (1) less than 25% of the provinces achieve CRS-efficiency of 1 from the year 2003 (output in 2006) to 2005(output in 2008) and over 58% of the provinces are below the average CRS-efficiency level from the year 2003 (output in 2006) to 2005(output in 2008). (2) More provinces achieve technical efficiency from the year 2003 (output in 2006) to 2005(output in 2008). And all these provinces come from the low development regions. (3) R&D investments do not demonstrate scale economy and few provinces exhibit increasing returns to scale.