Green innovation efficiency: a threshold effect of research and development

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ORIGINAL PAPER

Green innovation efficiency: a threshold effect of research and development Xiao Luo1 · Weiye Zhang1 Received: 27 December 2019 / Accepted: 27 October 2020 © Springer-Verlag GmbH Germany, part of Springer Nature 2020

Abstract  Green innovation is an important topic of research worldwide currently due to the attention to climate change and environmental issues. To have an understanding of the green innovation evaluation, this study measured the green innovation efficiency by using a meta-frontier Malmquist–Luenberger productivity index. The study results indicated that the growth rate of green innovation efficiency found differs greatly based on the environmental issues. Taking the research capacity of research and development institutions as the threshold variable, a double threshold effect is found as an inverted N-shaped. The study explored that the educational level and maturity of the technology market have a significant positive correlation with regional green innovation efficiency. Unlike environmental regulation and degree of openness, an improvement in green innovation efficiency is found fully dependent on the technological progress and regional green innovation efficiency. This study will be useful for policymakers and researchers to enhance green innovation efficiency in China and the rest of the world with similar economic settings. Graphic abstract

Keywords  Green innovation efficiency · MML productive index · Threshold effect · Research and development

* Xiao Luo [email protected] 1



Sichuan University, No.24 South Section 1, Yihuan Road, Chengdu, Sichuan Province, China

Abbreviation MML Meta-frontier Malmquist–Luenberger ­productivity index R&D Research and development DEA Data envelopment analysis RAM Range adjusted measure SFA Stochastic frontier approach

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X. Luo, W. Zhang

TOPSIS Technique for order preference by similarity to an ideal solution SBM Slack-based model DMU Decision-making units TC Technical change EC Efficiency change ML Malmquist–Luenberger index TE Technical efficiency BPR Best practice gap ratio TGR​ Technical gap ratio BPC Best practice gap change TGC​ Technical gap ratio change Pgdp Per capita GDP GDP Gross domestic product Egdp Proportion of total environmental investment to GDP Stu Number of students in colleges and universities per 0.1 M population FDI Foreign direct investment Market Technical market turnover RD R&D projects of R&D institutions SO2 Sulfur dioxide GEC Group frontier efficiency change GTC​ Group frontier technical change GML Group frontier Malmquist–Luenberger productivity index MEC Meta-frontier efficiency change MTC Meta-frontier technical change LR Likelihood ratio EKC Environmental Kuznets curve

Introduction Owing to climate change and ongoing development activities resulted in significant degrees of pollution in many countries over time (Huq et  al. 2006). Several research works referred with enhanced attention to environmental concerns (D’Amato et al. 2017), along with the c