2017 International Conference on Education Innovation and Economic Management (EIEM 2017) ISBN: 978-1-60595-495-0

Operating Efficiency Evaluation of High-Tech Zones in the Pan River Delta Based on the SUP-DEA Model Wei-wei LOU School of Economics and Management, University of Science and Technology, NO.2, Mengxi Road, Jingkou , , Jiangsu, China

Keywords: High-tech zones, Operating efficiency, SUP-BCC.

Abstract. The number of the High-tech Zone in the Pan Yangtze River Delta is growing constantly in recent years. However, the quality of their development is unknown. This paper use the SUP-BCC model of DEA and the data of 2014 to evaluate the operating efficiency of the 23 High-tech Zones in this region. The result shows: half of the High-tech Zones’ operating efficiency is very low, 60% of the High-tech Zones is in the decreasing return to scale. The High-tech Zones in different province present a large gap in operating efficiency. In the view of the results, this paper make some suggestions for the developing of the High-tech Zones.

Introduction Put the strategy of innovation-driven development into practice, mold more industry which can lead the development is the target of our country in the new era. There is no doubt that the development of High-tech Zones will be the key to our country’ strategy implement. Because the High-tech Zones have the advantages such as high technology content, high added value and high competitiveness. Up to now, the number ratio of the High-tech Zone in the Pan Yangtze River Delta is 20% to the whole country. And in the year of 2015, the operating income, the net income, the earn foreign exchange through export, the sales income and the technical income is 21.8%, 24.5%, 32.7%, 24.1% and 20.2% to the whole country’. The data of scale is so exciting. However, whether the management of High-tech Zones is efficiency, the output is equal to the input or not, all of these are unknown. So, it is very important to evaluate the operating efficiency of the High-tech Zones in this region. Since the first High-tech Zone was built in the world and it made great achievements, the scholars are focus on it constantly, and they make a lot of research on it. Some scholars comes from the view of management to study: Anne-Mari J and Hanna Koskela have studied what the role of the manager should play in the zone[1]; Liu Ying built a model and suggest how to Locate and formulate a High-tech Zone[2]. Some scholar also study from the view of competitiveness: Malecki introduce the personal mobility and capital mobility into a evaluation model to evaluate the competitiveness of the High-tech Zones[3]; Hu Shuhua and other scholars studied the competitiveness of the High-tech Zones in China ,they found that some High-tech Zones in China exist a large gap and the competitiveness of High-tech Zones in different place are very different[4,5]. In addition, as a important feature of the High-tech Zone, so many scholars have studied the innovation of the High-tech Zones. Scholar Basile studied the relationship between net system and innovation[6]. Xie Ziyuan studied the influence factor on innovation efficiency of the High-tech Zones[7]. Xiao Yonghong and Liu Manfeng have evaluated the innovation ability and innovation efficiency of the High-tech Zones in China[8,9]. Nowadays, the studies on High-tech Zones merely focus on the aspect we have mentioned above. The study on operating efficiency is very absent. Only Lu Genyao and Su su’ study have been involved in it[10,11]. So, this article will use the DEA to evaluate the operating efficiency of the High-tech Zones in the Pan Yangtze River Delta, And will analysis the result all-round.

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Research Model Data Envelopment Analysis(DEA) is a way to evaluate the efficiency of Decision-Making Units(DMU), And its theory is very simple to evaluate the system’ efficiency which has few inputs and few outputs. So, it is suitable to evaluate the operating efficiency of the High-tech Zones. The traditional DEA model is based on constant returns to scale of the DMU. Its linear programming formula is listed below:

min  n     xsx  jj j0  j1 ts ..  n     ysy  jj j0  j1    0  j (1) As we all know, in the realistic production practice, the DMU is always in the state of variable n returns to scale. Base on this condition, this paper will add a convexity assumptions:  j 1 to j1 the original model, the new model is called BCC. However, it is not perfect. Few efficient DMU will appear when we use it to evaluate the operating efficiency. And the efficient DMU can not be compared. To solve this problem, when evaluate the efficiency, we can delete the DMU which is evaluated. At this moment, the evaluated DMU’ efficiency is calculated by the Production frontiers formed by other DMU. And the efficient DMU’ efficiency will greater than 1. So, the efficient DMU can be distinguished. We called this model SUP-BCC. The High-tech Zones’ operating efficiency can be analyzed all-round and thorough.

Empirical Research The Construction of Index System and the Selection of Data According to the Production Function Model, Capital, Labor and Synthesis Technique are the basic elements of production. So, this paper will choose the number of enterprise in the High-tech Zone, the number of employees at the end of the year and the capital at the end of the year to be the inputs. Meanwhile, the operating income, the industrial output and the net profits reflect the ability of the High-tech Zones to make income and profile. So, this paper will choose this three to be the outputs. After balancing the possibility to get the data we will use. This paper choose the 23 High-tech Zones in the Pan Yangtze River Delta to be the DMU. And the data is select from the China Torch Statistical Yearbook-2015. All the data this paper use is true and reliable. Empirical Result and the Analysis Enter the input and output index of every DMU into the software called MAX-DEA, then get the operating efficiency showed in the table 1: As seen from the table1, the number of High-tech Zone whose TE (Technology Efficiency) is less than 1 is almost 70% to the total number. And more than half of the High-tech Zones is less than 0.8. From the ratio we can know, most of the High-tech Zones have an unreasonable construction in the input and output. And the operating efficiency should be improved. Otherwise, all the SE(Scale Efficiency) is less than 1, the number of High-tech Zone whose state of return to scale is increasing is 9, 14 High-tech Zones are in the decreasing state. In other words, more than half of the High-tech Zones’ input can be transformed into output. In fact, this is a form of wasting resource. In the following paper, we will analyze the evaluate result by dividing the efficiency:

219 The High-tech Zone whose TE is more than 1 include , , TaiZhou, , ShangHaiZiZhu, HeFei, and WuHu. These 7 High-tech Zone’s PTE(Pure Technology Efficiency) are more than 1, but the SE is less than 1. So, the scale of the 7 High-tech Zone can not match with the level of the technology. Such as the XuZhou and ShangHaiZiZhu, the PTE is 2.885 and 1.986. However, their SE is below 0.6. Through the analysis, These two High-tech Zone is built in 2012, so, they have a grate advantage on technology, But, it is not so long of their history that their scale is small. What they should do is to enlarge the scale. We can also see from the table: The HeFei High-tech Zone built in 1992 has a low SE as 0.775. The reason caused this problem is the scale of it is too big. And it is in the state of decreasing. What the HeFei High-tech Zone should do is to focus more on the quality in the process of its development. Table 1. The operating efficiency of each high-tech zone in the pan Yangtze river delta.

Technology Pure Technology The State of return to DMU Scale Efficiency Efficiency Efficiency scale NanJing 2.490 2.559 0.973 Decreasing XuZhou 1.408 2.885 0.488 Increasing TaiZhou 1.274 1.565 0.814 Increasing JiangYin 1.220 1.257 0.971 Decreasing ShangHaiZiZhu 1.173 1.986 0.591 Increasing HeFei 1.150 1.485 0.774 Decreasing WuHu 1.005 1.008 0.997 Increasing MaAnShanCiHu 0.946 1.182 0.800 Increasing NingBo 0.885 0.973 0.910 Decreasing HangZhou 0.879 1.066 0.825 Decreasing ShangHaiZhangJiang 0.808 3.096 0.261 Decreasing 0.797 0.917 0.869 Decreasing 0.754 1.064 0.709 Decreasing SuZhouGongYeYuan 0.748 1.098 0.681 Decreasing BengBu 0.690 0.697 0.990 Decreasing 0.648 0.898 0.7212 Decreasing 0.628 0.819 0.767 Decreasing WuJin 0.625 0.783 0.798 Decreasing 0.618 0.978 0.632 Decreasing WenZhou 0.615 0.632 0.973 Increasing QuZhou 0.441 0.483 0.913 Increasing ShaoXing 0.373 1 0.373 Increasing ZhenJiang 0.290 0.380 0.763 Increasing In the region from 0.8-1 there are 4 High-tech Zones such as MaAnShanCiHu, NingBo, HangZhou and ShangHaiZhangjiang. Merely from the figures, these 4 High-tech Zones operate nearly efficiently. However, someone has the obvious problem. The PTE of ShangHaiZhangjiang is 3.096, it is very high. But its SE IS 0.261. It is not hard to discover that ShangHaiZhangjiang has the unique economic and geographical advantages, this can attract the newest technology and the talent persons. So it can show a high level in PTE. Every coin has two sides, the advantages also attract too many enterprise. It causes the scale beyond its carrying capacity and the High-tech Zone is in the state of decreasing. There are 9 High-tech Zones’ operating efficiency is in the region of 0.5-0.8. Only WenZhou is in the state of increasing., others are in decreasing. So the scale of the High-tech Zones should be

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the key point that managers focus on. Complete the limit system of entering the enterprise and keep the scale on the suitable level is what should be done now. QuZhou, ShaoXing and ZhenJiang operate badly and the TE is under 0.5. We can know that these 3 High-tech Zones are in the state of increasing. It is easy to discover, no matter in the PTE or in the SE, ZhenJiang are all in a low efficiency. Through the survey we can know, ZhenJiang High-tech Zone was set in 2014. The scale is small. In addition, It is RunZhou industrial park in the past, there are a lot of traditional enterprise here, so, the level of the technology is a bit low.

Suggestions First of all, the number can not be the only goal in the process of High-tech Zones’ construction, the development quality should be paid more attention. According to the capacity of the resource and environment and set the reasonable amount of High-tech Zone. Then, the High-tech Zones can make the most contribution to the development of area’ economic with the least input. The second, the set of the High-tech Zone should be suitable for the environment. In the adjacent region, the different High-tech Zone should have the different industry. And every High-tech Zone should have its own features. This can avoid they compete in the same industry. The last, the manager of the High-tech Zone should know which development stage it is in, then, introduce the fund and labor into the zone. What is more, different zone can exchange their resource and information. For example, the resource can introduce from the zones in the stage of decreasing returns to scale into the zones in the stage of increasing returns to scale. For the High-tech Zones in the stage of decreasing returns to scale, they should strengthen the limit of introducing enterprise into the zone. At the same time, the enterprise consume too much resource and output a little can be delete from the zone.

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