Abstract: In order to optimize software development environment and improve the quality and level of the software industry in China, it is very important to evaluate the dynamic efficiency and its impact factors. With the data from 32 China national software development bases, such a study is conducted by using Data Envelopment Analysis (DEA). Efficiency variation is assessed by Malmquist Productivity Index. It shows that although the production efficiency of China national software development bases is gradually enhancing, its efficiency is still rather low and, especially, resource efficiency is to be improved. Also, it is found that the impact of financial crisis is very little and technological progress is the key to its productivity. In terms of physiographic region efficiency, there is no difference between eastern and middle-western regions. The efficiency is also independent of the time when a base was established.

Key words: software industry, data envelopment analysis (DEA), Malmquist index, dynamic efficiency