Research On Growth Of High-tech Industry Based On Efficiency Theory In China

High-tech industrialization and high-tech industry growth has remained as an important issue in academic fields such as industrial economics, technical economics,regional economics, new economical growth theory and investment theory. It is also an important issue in policy-making and development of the national economy. Nowadays,many scholars in theoretical and practical fields have done much research on issues such as the necessity of developing high-tech industry; venture capital investment, technical development and industrialization of high-tech industry; the building and development of high-tech parks; the factors affecting high-tech industry growth; and the development of high-tech enterprises. A few other scholars have made an analysis of the efficiency of high-tech manufacturing industry growth. However, the majority of the research has been done from qualitative perspective, and the research on high-tech industrialization is more than research on high-tech industry growth. No systematic research has been carried out on high-tech industry development from efficiency perspective. In this paper, high-tech industry will be the research object. The theories of industrial economics and technical economics will be applied to discuss the inner mechanism of high-tech industry development, with the main focus on the empirical analysis of factors affecting high-tech industry growth based on efficiency theory. It is hoped that, this research can help people have a comprehensive understanding of the present situation and the main affecting factors of high-tech industry growth. Meanwhile, since this paper has put forward some pertinent suggestions on further development of high-tech industry, it also has great practical values in policy-making besides theoretical values.Based on productivity theory and efficiency theory, from regional perspective and industrial perspective, this paper begins with the introduction of efficiency theory, and the inner mechanism of high-tech industry formation and development, followed by the analysis of the contribution of high-tech industry to the national economy. Then, from two levels of factor productivity and total factor productivity respectively, the paper discusses the efficiency of high-tech industry. By use of econometric analysis and nonparametric Malmquist productivity analysis, together with the panel data of Chinese high-tech industry (manufacturing industry), the paper measures and analyzes the factor productivity of high-tech industry. In the research, the introduction of SBM—DEA model (which is non-radial and non-angle) is especially important in measuring the technical efficiency and total factor productivity and their constructions. Then, the spatial concentration theory is applied to study the industrial differences and regional differences of high-tech industry efficiency. Finally, by use of the econometric regression model of panel data, an empirical research is done on the factors affecting the total factor productivity of high-tech industry.The following are the main conclusions of the research:1. High-tech industry has its own laws in its formation and development. It is a newly-emerged industry based on technical innovation, so its developing process is also a process of the industrialization of high-tech outcome followed by continued technical innovation for further development. In this paper, three models have been proposed: high-tech innovation model, high-tech industrialization model, and the two-department-two-stage-three-factor model of high-tech industry development. By use of efficiency theory, the paper holds theoretically that high-tech industry development is affected by the following factors: resource investment, technical advancement, technical efficiency, scale efficiency, etc..2. Chinese high-tech industry has quickly developed during 1995-2004, and has been playing an increasingly important role in our manufacturing industries with great contributions to the national economy. In terms of region, high-tech industry in east China develops better than in other parts of China with larger shares, and has greater contribution to our economy. In terms of industry, computer industry and electronic communication industry develop quicker than other high-tech industries, which contribute a lot in fields like taxes, exporting and product innovation.3. In terms of region, the labor productivity of high-tech industry in east China is distinctly higher than that in mid-China and west China. In the past. ten years, provinces in east China have the highest labor productivity while those provinces in west China have the lowest. Generally speaking, the labor productivity of high-tech industry has been increasing in the past ten years. Though it tends to be steady in terms of either the whole nation or the three main economic regions, yet the gaps among different provinces are increasing instead of decreasing. In terms of industry, the labor productivity of different high-tech industries develops quite imbalanced. The computer manufacturing industry and the aircraft-spacecraft manufacturing industry have great gaps in their labor productivity, with the former having the highest one and the latter the lowest one. However, the aircraft-spacecraft manufacturing industry has taken efficient measures like independent innovations and quickly increased its labor productivity, and finally shortened the gap between it and other industries. Also in the past ten years (1995-2004), the capital productivity of high-tech industry has been increasing in China as a whole. The capital productivity gaps in high-tech industry among different provinces slightly fluctuate. The convergence trend of high-tech industry productivity in mid-China is especially distinct,which shows that this kind of gap among different provinces in this area is gradually shortening. The capital productivity in high-tech industry in east China is still developing best in China. The capital productivity of different high-tech industries has been increasing during 1995-2004 as a whole. Take the computer manufacturing industry as an example: its capital productivity has remained in top ranks in the past ten years; and within this industry,the gap of capital productivity still remains. It is clearly seen that the single factor productivity in high-tech industry is imbalanced either in different regions or in different industries. The single factor productivity of high-tech industry in east China is higher than that in mid-China and west China; that of computer manufacturing industry and electronic communication manufacturing industry is higher than that in other high-tech industries. The average concentration degree in high-tech industry is in positive correlation with the average labor productivity and capital productivity. 4. In terms of regional static efficiency, the gap of TE, PE and SE of high-tech industry is quite distinct among different regions, with TE in east China far higher than that in mid-west China while TE in mid-China a little higher than that in west China. In terms of time, TE in all three regions has not increased, which shows that the improvement of TE is still not enough. In terms of industrial static efficiency, the gaps of TE, PE and SE are also quite great within 17 high-techindustries, with the three factors in computers and office equipments manufacturing industries as the highest while those in the aircraft and spacecraft manufacturing industries as the lowest. In terms of regional dynamic efficiency,the total factor productivity is quite different in three regions: that of east China is better than that of mid-China, which in turn is better than that of west China; and TE in west China develops better than that in east China, but the technical advancement is still slower than that of east China. In terms of industrial dynamic efficiency, the average development level of TFP in the aircraft and spacecraft manufacturing industry has been the best among 15 high-tech industries, and the development of technical advancement functions better than that of technical efficiency. In these years, the aircraft and spacecraft manufacturing industry has been carrying out the independent innovations, which leads to its top position within the industry in the world. In a word, the reason why east China is better than mid-west China is that the. technical advancement contributes greater than the technical efficiency. There are industrial differences and regional differences in high-tech industry efficiency. First of all, high-tech industries are mainly located in east China, and the concentration degree is still increasing. On the whole, the industrial differences and regional differences in high-tech industry are mainly reflected in this way: in terms of concentration degree, the higher the degree of high-tech industry is, the higher the efficiency values higher are. Basically speaking, the average concentration degree in high-tech industry is in sort of positive correlation with the average technical efficiency and pure technical efficiency.5. From regional perspective and industrial perspective respectively, the research has also tested the effect of various kinds of factors on the technical advancement, the technical efficiency improvement and the final total factor productivity. In terms of the effect of different factors on TFP and its construction and increase, it is found out that R&D investment is in positive correlation with regional TFP, which shows that R&D investment has distinct positive effect upon the increase of total factor productivity in different regions.The effect of human capital is also within our expectation. With the support of great R&D investment, some complicated techniques in high-tech industry can be absorbed and digested, which can not only promote the technical advancement, but also improve the management level and skills of enterprises. The effect of capital accumulation also presents a distinct positive one, which shows the capital accumulation of high-tech industry still has positive influence on the construction and increase of productivity in different regions. FDI also has distinct positive effect upon the improvement of technical advancement and technical efficiency in Chinese high-tech industry. It is also proved that, with the entry of private enterprises and foreign enterprises, the proportion of state-owned enterprises is good for the increase of high-tech industry productivity as a whole. Finally, based on above conclusions, the paper puts forward the following suggestions on the development of high-tech industry:We should seize the opportunities of the new industrial revolution; abide by the laws of high-tech industry development so as to improve and perfect the mechanism of the formation and development of high-tech industry. We should increase the investment of R&D as well as high-tech industry elements, so as to improve our ability in independent innovation. We should improve the technical efficiency to make full use of the present techniques of high-tech industry. For different regions, they should have an accurate understanding of their own position in high-tech industry, pay great attention to the industry cluster, so as to bring the spatial concentration effect into full play. We should open wider to the outside world and make full use of private economy. We should also systematically consider various kinds of factors in order to improve high-tech industry productivity in an all-sided way.