An Empirical Study On Regional Innovation Efficiency Of Shanxi Province Based On DEA Method

In the process of economic globalization, the world economy presents significant regionalization characteristics. As for regional economy, it steps over the border of administration and country, which occupies an important position in the process of developing economy in one country and even in the whole world.The core of regional economic development is regional innovation, which is a main force to promote the development of regional economy, as a result, the regional innovation ability more and more becomes a determinant for regional or national competitive advantage. As a typical resource-based region, in recent years, Shanxi Province is developing forward step by step. With a call to promote industrial restructuring and technological innovation has been proposed, a new economic growth point is also brewing. In this case, the regional innovation research has important practical significanceThe regional innovation efficiency is an important indicator to measure the innovation effectiveness of a region, in recent years, Shanxi Province constantly increases the innovation investment. However, it s regional innovation ability in the country has been at the lowest level. To examine the efficiency of innovation is to define problems in the process of innovation in Shanxi Province.This paper adopts the qualitative research and quantitative research methods to identify index system which is composed by two inputs, three output, and four environment variables. In addition, this thesis adopts Three-stage DEA method to study the Shanxi Provincial relative efficiency in 30 provinces and cities in our country as well as11 cities in Shanxi Province, and then clearly defines the innovation efficiency gap between Shanxi Province and other provinces throughout the country and existing problems of 11 cities in the innovation process.This research shows that although the innovation efficiency of Shanxi Province is in lower level on a national scale, but it is still in rising stage. Furthermore, it shows that the insufficient investment in innovation in Shanxi Province is the main reason for low level of innovation efficiency. The management level has a significant impact on regional innovation efficiency, in addition, the development level of innovation activity in 11 cities of Shanxi Province is not balanced, which presents a great difference, and it may be related to the distribution of coal resources. Finally, these issues are given relevant policy recommendations. For example accelerating industrial restructuring, improving government management, strengthening the dominant position of innovation, improving the mechanism research, broadening the innovation funds received channels, optimizing environment emphasis on high-tech industries.