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Innovation, R&D Efficiency and the Impact of the Regulatory Environment: A Two-Stage Semi-Parametric DEA Approach

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Author Info

  • Astrid Cullmann
  • Jens Schmidt-Ehmcke
  • Petra Zloczysti

Abstract

This paper assesses the relative efficiency of knowledge production in the OECD using a nonparametric DEA approach. Resources allocated to R&D are limited and should therefore be used efficiently given the institutional and legal constraints. This paper presents efficiency scores based on an intertemporal frontier estimation for the period 1995 to 2004 and analyzes the impact of the regulatory environment using the single bootstrap procedure suggested by Simar and Wilson (2007). The empirical evidence supports the hypothesis that barriers to entry, aimed at reducing competition, lower research efficiency by attenuating the incentive to innovate and to allocate resources efficiently.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.97907.de/dp883.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 883.

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Length: 30 p.
Date of creation: 2009
Date of revision:
Handle: RePEc:diw:diwwpp:dp883

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Related research

Keywords: R&D efficiency; data envelopment analysis; truncated regression; regulation;

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Cited by:
  1. Benedikt Herrmann & Alexander Kritikos, 2013. "Growing out of the crisis: hidden assets to Greece's transition to an innovation economy," IZA Journal of European Labor Studies, Springer, Springer, vol. 2(1), pages 1-23, December.
  2. M. Foddi & S. Usai, 2012. "Regional innovation performance in Europe," Working Paper CRENoS 201221, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  3. Maxim Kotsemir, 2013. "Measuring national innovation systems efficiency – a review of DEA approach," HSE Working papers, National Research University Higher School of Economics WP BRP 16/STI/2013, National Research University Higher School of Economics.
  4. Marta Foddi & Stefano Usai, 2013. "Regional Knowledge Performance in Europe," Growth and Change, Gatton College of Business and Economics, University of Kentucky, Gatton College of Business and Economics, University of Kentucky, vol. 44(2), pages 258-286, 06.

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