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A typology of European countries based on innovation efficiency and technology gaps: The role of early-stage entrepreneurship

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  • Kontolaimou, Alexandra
  • Giotopoulos, Ioannis
  • Tsakanikas, Aggelos

Abstract

This paper analyzes national innovation efficiency in Europe considering the role of early-stage entrepreneurship. In doing so, potential technological differences, i.e. technology gaps, are computed in a metafrontier framework taking into account that developed countries may use a different technology in producing innovation from their developing/transition counterparts. Using bootstrap DEA, we find that developing/transition countries exhibit, in average terms, twice the technology gap of that corresponding to developed economies. Based on innovation efficiency and technology gap measures, a typology of the European countries is introduced revealing features related to national strategic positioning, countries' absorptive capacity and knowledge spillover effects. The group of European innovation leaders is formed by Germany, Switzerland, Netherlands, Denmark, Austria, Iceland and Italy. Second-stage results imply that entrepreneurial activity motivated by necessity hinders the adoption of superior technology in producing innovation in Europe.

Suggested Citation

  • Kontolaimou, Alexandra & Giotopoulos, Ioannis & Tsakanikas, Aggelos, 2016. "A typology of European countries based on innovation efficiency and technology gaps: The role of early-stage entrepreneurship," Economic Modelling, Elsevier, vol. 52(PB), pages 477-484.
    • Handle: RePEc:eee:ecmode:v:52:y:2016:i:pb:p:477-484
    DOI: 10.1016/j.econmod.2015.09.028
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    2. Yongqi Feng & Haolin Zhang & Yung-ho Chiu & Tzu-Han Chang, 2021. "Innovation efficiency and the impact of the institutional quality: a cross-country analysis using the two-stage meta-frontier dynamic network DEA model," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(4), pages 3091-3129, April.
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    9. Fang, Zhen & Razzaq, Asif & Mohsin, Muhammad & Irfan, Muhammad, 2022. "Spatial spillovers and threshold effects of internet development and entrepreneurship on green innovation efficiency in China," Technology in Society, Elsevier, vol. 68(C).
    10. Dilawar Khan & Muhammad Nouman & Arif Ullah, 2023. "Assessing the impact of technological innovation on technically derived energy efficiency: a multivariate co-integration analysis of the agricultural sector in South Asia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(4), pages 3723-3745, April.
    11. Dorgyles C.M. Kouakou, 2022. "Separating innovation short-run and long-run technical efficiencies: Evidence from the Economic Community of West African States (ECOWAS)," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 19(1), pages 103-141, June.
    12. Dorgyles C.M. Kouakou, 2022. "Separating innovation short-run and long-run technical efficiencies: Evidence from the Economic Community of West African States (ECOWAS)," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 19(1), pages 103-141, June.
    13. Nelson Duarte & Vítor Santos & Anna Dziadkiewicz & Joanna Nieżurawska & Wioleta Dryl & Tomasz Dryl & Lech Nieżurawski & Carla Sofia Gonçalves Pereira & Tiago Fernandndo Ferreira Lopes, 2017. "Stymulanty i bariery w procesie transferu wiedzy – przegląd literatury," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 44, pages 175-196.
    14. Bresciani, Stefano & Puertas, Rosa & Ferraris, Alberto & Santoro, Gabriele, 2021. "Innovation, environmental sustainability and economic development: DEA-Bootstrap and multilevel analysis to compare two regions," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    15. Nida Kamil Ozbolat & Nicholas Harrap, 2018. "Addressing the innovation gap: Lessons from the Stairway to Excellence (S2E) project," JRC Research Reports JRC111888, Joint Research Centre.
    16. Miao, Cheng-lin & Duan, Meng-meng & Zuo, Yang & Wu, Xin-yu, 2021. "Spatial heterogeneity and evolution trend of regional green innovation efficiency--an empirical study based on panel data of industrial enterprises in China's provinces," Energy Policy, Elsevier, vol. 156(C).
    17. Silveli Cristo-Andrade & João J. Ferreira, 2020. "Knowledge spillovers and strategic entrepreneurship: what researches and approaches?," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 263-286, March.
    18. Kuwahara, Shiro, 2019. "Multiplicity and stagnation under the Romer model with increasing returns of R&D," Economic Modelling, Elsevier, vol. 79(C), pages 86-97.
    19. Kristian Kremer, 2019. "The Entrepreneurial Ecosystem: A Country Comparison Based on the GEI Approach," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(02), pages 52-62, August.
    20. Ioannis Giotopoulos & Alexandra Kontolaimou & Aggelos Tsakanikas, 2017. "Drivers of high-quality entrepreneurship: what changes did the crisis bring about?," Small Business Economics, Springer, vol. 48(4), pages 913-930, April.
    21. Vahid Omidi & Abolfazl Shahabadi & Nader Mehregan, 2020. "Innovation Drivers in Developing Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 707-720, June.
    22. Irena Lacka & Lukasz Brzezicki, 2021. "The Efficiency and Productivity Evaluation of National Innovation Systems in Europe," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 471-496.

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