Performance impact of research policy at the Chinese Academy of Sciences

We present evidence on productivity improvement experienced by the research institutes of the Chinese Academy of Sciences (CAS) after its implementation of the Knowledge Innovation Program (KIP). Using a balanced panel of data on R&D inputs and outputs of 59 research institutes in CAS, we analyze the productivity, technological and efficiency changes from 1997 to 2005. We document that the CAS research institutes have a productivity growth of 12.5% from 1998 to 2005, which can be further decomposed into 8.8% attributed to technological progress and 3.3% to efficiency improvement. Results of regional analysis show that institutes in Beijing and Shanghai, performed better than institutes in other regions during the same period.

► We examine productivity change at the institutes of Chinese Academy of Sciences.
► Significant changes in organizational and resource management practices were made.
► We document an average annual productivity growth of 12.5% from 1998 to 2005.
► In the short term, institutes in less developed regions show greater improvement.
► In the long term, the Institutes in Beijing and Shanghai perform better.