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Measuring the efficiency of regional innovation systems: an empirical assessment

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  • Fritsch, Michael
  • Slavtchev, Viktor

Abstract

We measure the efficiency of regional innovation systems (RIS) in Germany by means of a knowledge production function. This function relates private sector Research and Development (R&D) in a region to the number of inventions that have been registered by residents of that region. Two approaches are followed. First, it is assumed that differences in the productivity of private sector R&D between regions affect the slope of the KPF, which represents the marginal productivity of R&D input. The second approach assesses regional differences within the framework of a stochastic frontier knowledge production function. This approach mainly reveals differences with regard to the intercept of the knowledge production function and, therefore, with regard to the average productivity. We compare the results of both approaches and discuss a number of critical issues such as the properties of the distribution of efficiencies, the appropriate size of RIS, and how to deal with the issue of spatial autocorrelation.

Suggested Citation

  • Fritsch, Michael & Slavtchev, Viktor, 2006. "Measuring the efficiency of regional innovation systems: an empirical assessment," Freiberg Working Papers 2006/08, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    • Handle: RePEc:zbw:tufwps:200608
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    Cited by:

    1. Michael Fritsch & Viktor Slavtchev, 2007. "What determines the efficiency of regional innovation systems?," Jena Economics Research Papers 2007-006, Friedrich-Schiller-University Jena.
    2. Alexandra Schröter, 2008. "Perspektiven der Innovationspolitik in den neuen Bundesländern," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 15(02), pages 40-52, 04.
    3. Naveed Ul Haq, 2023. "Impact of FDI and Its Absorption Capacity on the National Innovation Ecosystems: Evidence from the Largest FDI Recipient Countries of the World," Foreign Trade Review, , vol. 58(2), pages 259-288, May.
    4. Michael Fritsch, 2007. "The Geography and the Effect of Creative People in Germany," Jena Economics Research Papers 2007-001, Friedrich-Schiller-University Jena.
    5. Leydesdorff, Loet & Fritsch, Michael, 2006. "Measuring the knowledge base of regional innovation systems in Germany in terms of a Triple Helix dynamics," Research Policy, Elsevier, vol. 35(10), pages 1538-1553, December.
    6. Tom Broekel & Thomas Brenner, 2011. "Regional factors and innovativeness: an empirical analysis of four German industries," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(1), pages 169-194, August.
    7. Kaihua Chen & Jiancheng Guan, 2012. "Measuring the Efficiency of China's Regional Innovation Systems: Application of Network Data Envelopment Analysis (DEA)," Regional Studies, Taylor & Francis Journals, vol. 46(3), pages 355-377, April.
    8. Michael Fritsch & Viktor Slavtchev, 2010. "How does industry specialization affect the efficiency of regional innovation systems?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 87-108, August.
    9. Anne Nygaard Tanner, 2014. "Regional Branching Reconsidered: Emergence of the Fuel Cell Industry in European Regions," Economic Geography, Clark University, vol. 90(4), pages 403-427, October.
    10. Dorota Ciołek & Anna Golejewska, 2022. "Efficiency Determinants of Regional Innovation Systems in Polish Subregions," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 24-45.
    11. Stepan Zemtsov & Maxim Kotsemir, 2019. "An assessment of regional innovation system efficiency in Russia: the application of the DEA approach," Scientometrics, Springer;Akadémiai Kiadó, vol. 120(2), pages 375-404, August.
    12. Tom Broekel & Thomas Brenner, 2007. "Measuring Regional Innovativeness - A Methodological Discussion and an Application to One German Industry," Jena Economics Research Papers 2007-065, Friedrich-Schiller-University Jena.

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    More about this item

    Keywords

    Knowledge; innovation; spillovers; patents; regional analysis;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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