An international comparison of R&D efficiency of multiple innovative outputs: The role of the national innovation system

Abstract This paper compares research and development (R&D) efficiency across nations based on various output-oriented R&D efficiency indices that are developed by the data envelopment analysis approach. Empirical results show that nations have similar R & D efficiency in terms of patents and royalties, while their performance for journal publications is quite different. We then investigate how the innovation environment, especially in the national innovation system, affects these output-oriented R&D efficiency indices. R&D intensity, intellectual property rights protection, knowledge stock, and human capital accumulation all have significantly positive effects on efficiency indices. Private sector R&D, funded by either foreign sources or funded and poformed by private businesses, plays an important role in improving scores on the output-oriented R&D efficiency index for patents and for royalties and licensing fees. The R&D intensity performed by higher education institutions has a positive effect on the journal-oriented R&D efficiency index.

[1]  Dominique Guellec,et al.  From R&D to Productivity Growth: Do the Institutional Settings and the Source of Funds of R&D Matter? , 2004 .

[2]  Abraham Charnes,et al.  Measuring the efficiency of decision making units , 1978 .

[3]  M. Farrell.  The Measurement of Productive Efficiency , 1957 .

[4]  Hakyeon Lee,et al.  Comparative evaluation of performance of national R&D programs with heterogeneous objectives: A DEA approach , 2009, Eur. J. Oper. Res..

[5]  A. Hashimoto,et al.  Measuring the change in R&D efficiency of the Japanese pharmaceutical industry , 2008 .

[6]  Maria Laura Parisi,et al.  Productivity, innovation and R&D: Micro evidence for Italy , 2006 .

[7]  P. Aghion,et al.  Distance to Frontier, Selection, and Economic Growth , 2002 .

[8]  Yong-Tae Park,et al.  An international comparison of R&D efficiency: DEA approach , 2005 .

[9]  A. U.S.,et al.  Measuring the efficiency of decision making units , 2003 .

[10]  Peter Nunnenkamp,et al.  Foreign Direct Investment and Economic Growth in Developing Countries: How Relevant are Host-Country and Industry Characteristics? , 2003 .

[11]  B. Verspagen,et al.  Systems of Innovation , 2009 .

[12]  A. Pakes,et al.  Patents and R&D at the Firm Level: A First Look , 1984 .

[13]  Bettina Peters,et al.  Innovation and Productivity Across Four European Countries , 2006 .

[14]  E. Wang,et al.  Relative efficiency of R&D activities: A cross-country study accounting for environmental factors in the DEA approach , 2007 .

[15]  A. Charnes,et al.  Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis , 1984 .

[16]  Timothy Coelli,et al.  An Introduction to Efficiency and Productivity Analysis , 1997 .

[17]  Walter G. Park,et al.  DETERMINANTS OF PATENT RIGHTS : A CROSS-NATIONAL STUDY , 1997 .

[18]  K. Green.  National innovation systems: a comparative analysis , 1996 .

[19]  B. Lundvall.  National Systems of Innovation , 1992 .

[20]  F. Lichtenberg,et al.  R&D Investment and International Productivity Differences , 1992 .

[21]  Z. Griliches.  Patent Statistics as Economic Indicators: a Survey , 1990 .

[22]  J. Mathews,et al.  China's national innovative capacity , 2008 .

[23]  Jacques Mairesse,et al.  Exploring the Relationship between R&D and Productivity in French Manufacturing Firms , 1992 .

[24]  William E. Souder,et al.  Measuring R&D Performance-State of the Art , 1997 .

[25]  Jeffrey L. Furman,et al.  The Determinants of National Innovative Capacity , 2000 .

[26]  C. Edquist.  Systems of Innovation: Technologies, Institutions and Organizations , 1997 .