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Are We Spending Our Scarce R&D Resources Adequately? Analyzing the Efficiency of EU’s Regional Innovation Systems

In: Advances in Cross-Section Data Methods in Applied Economic Research

Author

Listed:
  • Thomas Baumert

    (ESIC Business & Marketing Madrid)

  • Cristián Gutiérrez

    (Univ. de Santiago de Chile)

Abstract

The purpose of this article is to measure the efficiency of regional innovation systems (RIS) of the European Union (EU-14) between 2000 and 2010 based on the Data Envelopment Analysis. To measure the efficiency, we used 29 input variables synthesized in 5 factors or composite indicators. The output is reflected by patents and scientific publications. The results obtained highlight that only a few European RIS are situated on or near the efficiency frontier and most regions present very low efficiency levels. We detected a broad dispersion in terms of efficiency, although the tendency over time is a reduction of the dispersion reflecting a process of convergence. Moreover, the results reveal that an important possible cause of the inefficiencies is a problem of scale rather than technical inefficiency.

Suggested Citation

  • Thomas Baumert & Cristián Gutiérrez, 2020. "Are We Spending Our Scarce R&D Resources Adequately? Analyzing the Efficiency of EU’s Regional Innovation Systems," Springer Proceedings in Business and Economics, in: Nicholas Tsounis & Aspasia Vlachvei (ed.), Advances in Cross-Section Data Methods in Applied Economic Research, chapter 0, pages 307-332, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-38253-7_20
    DOI: 10.1007/978-3-030-38253-7_20
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