An Application of Principal Component Analysis and Factor Analysis on Driving Force of Technological Innovation: Evidence from Eastern China

摘要

In this paper, we analyze the driving force of technological innovation based on Principal Component Analysis (PCA) and Factor Analysis (FA) using scientific and technological data from 8 relatively developed provinces (municipalities) in Eastern China. The results show that the influencing factors of technological innovation share high degree of correlation. Education, government investment, labor force input and R&D alliance are the determinants of innovation, and the comprehensive scores of three municipalities by both PCA and FA are higher than other provinces.