Abstract:Based on China provincial panel data, this paper measures the inequality of regional R& D innovation capacity of China, and analyzes the influences of different factors on the regional R& D innovation capacity. Using regression-based Shapley value decomposition, this paper decomposes the regional inequality of China R& D innovation capacity. The result shows that the regional inequalities of the level of input of R& D personnel, the level of openness, R& D capital stock, and the level of financial development are the four most important influential factors. Furthermore, the regional inequalities of the regional inherent factor, the institutional characteristics, the level of infrastructure, the level of industrialization, the involvement of enterprises into innovative activities, and the economic influence of local government are also important influential factors ordered by the influence on the regional inequality of interest. The paper discusses the related policy implications based on the results of the analysis