Abstract: Science Set Journal of Economics Research

Abstract:
The manufacturing sector's capacity base is critical to any country's wealth creation and economic growth. An economy's industrial innovative performance is dependent on the rigorous application of new ideas, production methods, and modern techniques. This study uses the Malmquist productivity index of Data Envelopment Analysis (DEA), and the Generalized ordinal model to investigate the actual innovation growth of China’s industrial enterprises. It further analyses the possibilities of the low innovative industries transforming into high innovative industries. The findings highlight that, although China’s industrial enterprises above high designated are on average experiencing a negative growth rate in terms of technical progress, yet they have spurred innovation with an average growth of 0.7% in total factor productivity. It concludes that there is a general need for the authority concern to lay more emphasis on reducing technical inefficiency, thereby improving technological innovation level and subsequent increase in overall efficiency scale.