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Is more always better? On the relevance of decreasing returns to scale on innovation

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  • Barbero, Javier
  • Zabala-Iturriagagoitia, Jon Mikel
  • Zofío, José L.

Abstract

We contribute to the literature on the assessment of innovation systems by relating the amount of inputs available to the system and its performance through the concept of returns to scale (increasing, constant or decreasing). We study to what extent the size or scale of innovation systems relates to their performance, which is estimated through frontier Data Envelopment Analysis-TOPSIS methods, which overcome several limitations of the standard DEA approach.

Suggested Citation

  • Barbero, Javier & Zabala-Iturriagagoitia, Jon Mikel & Zofío, José L., 2021. "Is more always better? On the relevance of decreasing returns to scale on innovation," Technovation, Elsevier, vol. 107(C).
  • Handle: RePEc:eee:techno:v:107:y:2021:i:c:s016649722100095x
    DOI: 10.1016/j.technovation.2021.102314
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