An Analysis of Effectiveness of the Fiscal Investment Policy in Science and Technology in Western Areas of China

The policy of public fiscal investment in science and technology is a major policy in China, which could promote the capacity of scientific and technological innovation for a country or region. This paper employs the DEA method and conducts an empirical analysis on the effectiveness of fiscal investment policy in science and technological in the west areas of China from 2010 to 2012, and then compares the effectiveness discrepancy between 11 different provinces of the west areas of their fiscal investment policy in science and technological. The study shows that there exists efficiency loss and significant differences in fiscal investment policy in science and technological in the west areas of China. The paper suggests that local governments should strengthen the consciousness of innovation in science and technology, improve the utilization rate of the resources from the fiscal investment, improve the transformation ability of scientific and technological achievements into productivity forces and perfect the transfer payment policy of fiscal investment in science and technology in the west areas.