Modeling the relative efficiency of national innovation systems
Although a large amount of past research has theorized about the character of national innovation systems (NISs), there has been limited process-oriented empirical investigation of this matter, possibly for methodological reasons. In this paper, we first propose a relational network data envelopment analysis (DEA) model for measuring the innovation efficiency of the NIS by decomposing the innovation process into a network with a two-stage innovation production framework, an upstream knowledge production process (KPP) and a downstream knowledge commercialization process (KCP). Although the concept of innovation efficiency is a simplification of the innovation process, it may be a useful tool for guiding policy decisions. We subsequently use a second-step partial least squares regression (PLSR) to examine the effects of policy-based institutional environment on innovation efficiency, considering statistical problems such as multicollinearity, small datasets and a small number of distribution assumptions. The hybrid two-step analytical procedure is used to consider 22 OECD (Organisation for Economic Co-operation and Development) countries. A significant rank difference, which indicates a non-coordinated relationship between upstream R&D (research and development) efficiency and downstream commercialization efficiency, is identified for most countries. The evidence also indicates that the overall innovation efficiency of an NIS is mainly subject to downstream commercial efficiency performance and that improving commercial efficiency should thus be a primary consideration in future innovation policy-making in most OECD countries. Finally, the results obtained using PLSR show that the various factors chosen to represent the embedded policy-based institutional environment have a significant influence on the efficiency performance of the two individual component processes, confirming the impact of public policy interventions undertaken by the government on the innovation performance of NISs. Based on these key findings, some country-specific and process-specific innovation policies have been suggested.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul M Romer, 1999.
"Endogenous Technological Change,"
Levine's Working Paper Archive
2135, David K. Levine.
- Simar, L. & Wilson, P.W., .
"Sensitivity analysis of efficiency scores: how to bootstrap in nonparametric frontier models,"
CORE Discussion Papers RP
1304, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Léopold Simar & Paul W. Wilson, 1998. "Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models," Management Science, INFORMS, vol. 44(1), pages 49-61, January.
- SIMAR, Léopold & WILSON, Paul, 1995. "Sensitivity Analysis to Efficiency Scores : How to Bootstrap in Nonparametric Frontier Models," CORE Discussion Papers 1995043, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Rossi, Federica, 2002. "An introductory overview of innovation studies," MPRA Paper 9106, University Library of Munich, Germany, revised Jun 2008.
- Kao, Chiang & Hwang, Shiuh-Nan, 2008. "Efficiency decomposition in two-stage data envelopment analysis: An application to non-life insurance companies in Taiwan," European Journal of Operational Research, Elsevier, vol. 185(1), pages 418-429, February.
- Markus Balzat & Horst Hanusch, 2004. "Recent trends in the research on national innovation systems," Journal of Evolutionary Economics, Springer, vol. 14(2), pages 197-210, 06.
- Léopold Simar & Paul Wilson, 2000.
"Statistical Inference in Nonparametric Frontier Models: The State of the Art,"
Journal of Productivity Analysis,
Springer, vol. 13(1), pages 49-78, January.
- Simar, L. & Wilson, P.W., 1999. "Statistical Inference in Nonparametric Frontier Models: the State of the Art," Papers 9904, Catholique de Louvain - Institut de statistique.
- H. Fried & C. Lovell & S. Schmidt & S. Yaisawarng, 2002. "Accounting for Environmental Effects and Statistical Noise in Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 17(1), pages 157-174, January.
- Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
- Jon Zabala-Iturriagagoitia & Peter Voigt & Antonio Gutierrez-Gracia & Fernando Jimenez-Saez, 2007. "Regional Innovation Systems: How to Assess Performance," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 661-672.
- repec:fth:harver:1473 is not listed on IDEAS
- P Cooke & M G Uranga & G Etxebarria, 1998. "Regional Systems of Innovation: An Evolutionary Perspective," Environment and Planning A, , vol. 30(9), pages 1563-1584, September.
- Chen, Yao & Cook, Wade D. & Li, Ning & Zhu, Joe, 2009. "Additive efficiency decomposition in two-stage DEA," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1170-1176, August.
- Griliches, Zvi, 1990.
"Patent Statistics as Economic Indicators: A Survey,"
Journal of Economic Literature,
American Economic Association, vol. 28(4), pages 1661-1707, December.
- Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 287-343 National Bureau of Economic Research, Inc.
- Zvi Griliches, 1990. "Patent Statistics as Economic Indicators: A Survey," NBER Working Papers 3301, National Bureau of Economic Research, Inc.
- R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
- Michael Fritsch & Viktor Slavtchev, 2007. "What determines the efficiency of regional innovation systems?," Jena Economic Research Papers 2007-006, Friedrich-Schiller-University Jena.
- Geisler, E., 1995. "An integrated cost-performance model of research and development evaluation," Omega, Elsevier, vol. 23(3), pages 281-294, June.
- Howells, Jeremy, 2006. "Intermediation and the role of intermediaries in innovation," Research Policy, Elsevier, vol. 35(5), pages 715-728, June.
- Li, Xibao, 2009. "China's regional innovation capacity in transition: An empirical approach," Research Policy, Elsevier, vol. 38(2), pages 338-357, March.
- Nahra, Tammie A. & Mendez, David & Alexander, Jeffrey A., 2009. "Employing super-efficiency analysis as an alternative to DEA: An application in outpatient substance abuse treatment," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1097-1106, August.
- Molas-Gallart, Jordi & Castro-Martínez, Elena & Fernández-de-Lucio, Ignacio, 2008. ""Interface Structures": Knowledge Transfer Practice In Changing Environments," INGENIO (CSIC-UPV) Working Paper Series 200804, INGENIO (CSIC-UPV).
- Hoff, Ayoe, 2007. "Second stage DEA: Comparison of approaches for modelling the DEA score," European Journal of Operational Research, Elsevier, vol. 181(1), pages 425-435, August.
- P. Byrnes & R. Färe & S. Grosskopf, 1984. "Measuring Productive Efficiency: An Application to Illinois Strip Mines," Management Science, INFORMS, vol. 30(6), pages 671-681, June.
- Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, August.
- Tone, Kaoru & Tsutsui, Miki, 2009. "Network DEA: A slacks-based measure approach," European Journal of Operational Research, Elsevier, vol. 197(1), pages 243-252, August.
- Faber, Jan & Hesen, Anneloes Barbara, 2004. "Innovation capabilities of European nations: Cross-national analyses of patents and sales of product innovations," Research Policy, Elsevier, vol. 33(2), pages 193-207, March.
- Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, vol. 39(10), pages 1261-1264, October.
- J.S. Eades, 2005. "East Asia," Chapters, in: A Handbook of Economic Anthropology, chapter 34 Edward Elgar Publishing.
- Sharif, Naubahar, 2006. "Emergence and development of the National Innovation Systems concept," Research Policy, Elsevier, vol. 35(5), pages 745-766, June.
- Russo, Margherita & Rossi, Federica, 2008. "Cooperation networks and innovation: A complex system perspective to the analysis and evaluation of a EU regional innovation policy programme," MPRA Paper 10156, University Library of Munich, Germany.
- Furman, Jeffrey L. & Porter, Michael E. & Stern, Scott, 2002. "The determinants of national innovative capacity," Research Policy, Elsevier, vol. 31(6), pages 899-933, August.
- Bengt-Åke Lundvall, 2007. "National Innovation Systems—Analytical Concept and Development Tool," Industry and Innovation, Taylor & Francis Journals, vol. 14(1), pages 95-119.
- Kao, Chiang, 2009. "Efficiency decomposition in network data envelopment analysis: A relational model," European Journal of Operational Research, Elsevier, vol. 192(3), pages 949-962, February.
- Guan, Jian Cheng & Yam, Richard C.M. & Mok, Chiu Kam & Ma, Ning, 2006. "A study of the relationship between competitiveness and technological innovation capability based on DEA models," European Journal of Operational Research, Elsevier, vol. 170(3), pages 971-986, May.
- Chen, Yao, 2005. "Measuring super-efficiency in DEA in the presence of infeasibility," European Journal of Operational Research, Elsevier, vol. 161(2), pages 545-551, March.
- McDonald, John, 2009. "Using least squares and tobit in second stage DEA efficiency analyses," European Journal of Operational Research, Elsevier, vol. 197(2), pages 792-798, September.
- Hashimoto, Akihiro & Haneda, Shoko, 2008. "Measuring the change in R&D efficiency of the Japanese pharmaceutical industry," Research Policy, Elsevier, vol. 37(10), pages 1829-1836, December.
- P Cooke & M G Uranga & G Etxebarria, 1998. "Regional systems of innovation: an evolutionary perspective," Environment and Planning A, Pion Ltd, London, vol. 30(9), pages 1563-1584, September.
- Yu, Chunyan, 1998. "The effects of exogenous variables in efficiency measurement--A monte carlo study," European Journal of Operational Research, Elsevier, vol. 105(3), pages 569-580, March.
When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:41:y:2012:i:1:p:102-115. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.