Efficiency of Research and Development (R&D) Investment in Chinese Higher Education: A DEA-Malmquist Analysis
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Abstract
Background and Objectives: Higher education institutions (HEIs) are crucial to scientific research and technological innovation, playing a key role in both regional and national development. Despite increasing government investments in research and development (R&D), significant disparities persist in efficiency across Chinese provinces. Previous studies have been limited in scope, either focusing on single regions, covering short time spans, or lacking a dynamic perspective on efficiency changes. This study addresses these gaps by conducting a nationwide, long-term empirical analysis of HEI R&D efficiency across 31 provinces from 2018 to 2023. The objective is to evaluate efficiency variations, identify regional disparities, and provide policy recommendations for optimizing HEI R&D resource allocation.
Methodology: This study employed the Banker–Charnes–Cooper Data Envelopment Analysis (BCC-DEA) model to measure HEI R&D efficiency. It used R&D expenditure and personnel as input variables, while patents and academic publications comprised output variables. Additionally, the Malmquist index was applied to examine efficiency dynamics over time. Data was sourced from the Compilation of Higher Education Science and Technology Statistics (2018–2023) to ensure reliability. This combined approach enabled a comprehensive evaluation of both static and dynamic efficiency, providing insights into technical efficiency, scale efficiency, and the impact of technological progress on productivity changes.
Main Results: The findings indicate significant regional disparities in HEI R&D efficiency across China. Shanghai and Xinjiang consistently achieve high DEA efficiency, benefiting from strong research infrastructure and favorable policy support. In contrast, provinces such as Anhui, Jiangxi, and Guangdong demonstrate lower efficiency levels and input redundancy, highlighting inefficiencies in resource allocation. The Malmquist index decomposition reveals that technological progress is the primary driver of total factor productivity (TFP) growth, yet many provinces fail to effectively translate technological advancements into productivity improvements. While some regions maximize technological innovation for efficiency gains, others struggle with weak research output commercialization and limited policy support, leading to persistent inefficiencies.
Discussions: The study underscores that economic development, policy support, and technology commercialization are key determinants of HEI R&D efficiency. Developed coastal regions benefit from better technology transfer mechanisms, research infrastructure, and financial resources, allowing them to achieve higher TFP growth. However, provinces with high R&D investment but low efficiency indicate barriers in converting research into practical applications, often due to weak industry linkages and funding inefficiencies. Policy interventions should prioritize bridging the gap between technological progress and commercialization by strengthening university-industry collaboration, optimizing R&D resource allocation, and enhancing knowledge-sharing networks. Addressing these inefficiencies is crucial for promoting balanced regional innovation and improving the overall research ecosystem.
Conclusions: To enhance HEI R&D efficiency and reduce regional disparities, targeted policies should be implemented. Financial support for underperforming regions, enhanced university-industry collaboration, and optimized technology commercialization mechanisms are key strategies. Promoting inter-regional HEI cooperation can improve resource sharing, talent mobility, and knowledge spillovers, fostering a more integrated innovation network. Policymakers should ensure that technological advancements translate into productivity gains, aligning research outputs with industry needs. Strengthening policy coordination and refining funding mechanisms will contribute to a balanced and efficient innovation system, supporting sustainable national development.
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