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

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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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Astrid Cullmann
Jens Schmidt-Ehmcke
Petra Zloczysti

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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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Publisher 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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Find related papers by JEL classification:
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models
L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

This paper has been announced in the following NEP Reports:

NEP-ALL-2009-05-23 (All new papers)
NEP-EFF-2009-05-23 (Efficiency & Productivity)
NEP-INO-2009-05-23 (Innovation)
NEP-KNM-2009-05-23 (Knowledge Management & Knowledge Economy)
NEP-MIC-2009-05-23 (Microeconomics)
NEP-REG-2009-05-23 (Regulation)

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