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Building BRICS: 2-Stage DEA analysis of R&D Efficiency

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  • Yuezhou Cai, Aoife Hanley

Abstract

Should inputs such as bank finance affect innovation in BRICS vs. developed countries similarly? Arguably these elasticities may depend on a country’s economic progress (Gerschenkron, 1962; Liu and White, 2001). Applying a combination of DEA and Tobit to a sample of 22 countries, we show how innovation (measured patents, scientific publications and high-tech sectoral output) responds favourably to private-sector R&D. No significant differences are recorded for BRICS countries. Differences emerge between BRICS and non-BRICS for the elasticity of innovative efficiency to banking inputs

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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1788.

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Length: 23 pages
Date of creation: Aug 2012
Date of revision:
Handle: RePEc:kie:kieliw:1788

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Keywords: BRICS countries; National Innovation System (NIS); innovation; DEA;

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  1. Daron Acemoglu & Joshua Linn, 2003. "Market Size in Innovation: Theory and Evidence From the Pharmaceutical Industry," NBER Working Papers 10038, National Bureau of Economic Research, Inc.
  2. Cullmann, Astrid & Schmidt-Ehmcke, Jens & Zloczysti, Petra, 2010. "R&D Efficiency and Barriers to Entry: A Two Stage Semi-Parametric DEA Approach," CEPR Discussion Papers 8047, C.E.P.R. Discussion Papers.
  3. Charnes, A. & Cooper, W. W. & Golany, B. & Seiford, L. & Stutz, J., 1985. "Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 91-107.
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