With the rapid development, the ties between water resource and regional innovation capacity are getting increasingly close in China. What does the innovation capacity growth bring to the change of the water resource? How does water resource in turn influence the innovation capacity in different regions of China? Focusing on the relationship between the two, this article firstly introduces the regional innovation index of 31 provinces in China designed by Renmin University of China, and then analyzes the water resource situation in industry development and innovation of 31 provinces, which mainly includes water resource acquisition, water transportation facilities and wastewater disposal. Based on the measurement of innovation capacity and water resource, we utilize the efficiency of water value and DEA analysis to analyze the interaction of water resource and innovation from the aspect of agriculture, industry and wastewater disposal facilities. For a further step, we estimate the effect of water usage, wastewater disposal and innovation to regional innovation efficiency based on the panel data obtained from Statistical Bulletin of Water Resource, to reveal the differences among different areas, which helps to come up with targeted policy suggestions for the water supply and demand development in China building an innovative country.

Keywords: Regional Innovation Capacity; Water Resource Development

Biography: Xu Qin, Master student, School of Statistics in Renmin University of China, mainly engaged in innovation competitiveness.