Examining the impact of urban management on regional innovation efficiency in China’s manufacturing industry with a focus on modern sustainable energy: utilizing a non-radial distance function method

Abstract

This study examines the impact of urban management on the efficiency of regional innovation in China’s manufacturing industry, with a specific focus on modern sustainable energy. The research takes into consideration the regional diversity in innovation development across China’s three major regions and integrates common Frontier theory with the MSBM model. By employing a non-radial distance function approach, this study develops the MMSBMP model, incorporating various improved methods proposed by researchers. The Luenberger index methodology is utilized to assess the innovation efficiency of the national manufacturing industry from 2017 to 2021, enabling the identification of efficiency losses. The findings highlight significant disparities and opportunities for enhancing innovation efficiency across the three major regions, both at the common Frontier and the group Frontier. However, caution is advised due to the potential overestimation of regional Frontier efficiency values resulting from variations in technical reference datasets. Analysis of the Total Growth Rate (TGR) values reveals distinct development characteristics among the regions, with the eastern region exhibiting smaller extremes and the central and western regions displaying larger extremes. This comprehensive examination of China’s manufacturing industry emphasizes the influence of urban management. By investigating the consequences of urban management practices, this research provides insights into the relationship between urban development strategies and the performance, efficiency, and sustainable growth of the manufacturing industry. The study highlights the significance of urban management in shaping regional innovation efficiency and emphasizes the continual improvement of the industry’s innovation performance in the context of modern sustainable energy.