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Innovation, R&D Efficiency and the Impact of the Regulatory Environment: A Two-Stage Semi-Parametric DEA Approach

Author

Listed:
  • Astrid Cullmann
  • Jens Schmidt-Ehmcke
  • Petra Zloczysti
Abstract
This paper assesses the relative efficiency of knowledge production in the OECD using a nonparametric DEA approach. Resources allocated to R&D are limited and should therefore be used efficiently given the institutional and legal constraints. This paper presents efficiency scores based on an intertemporal frontier estimation for the period 1995 to 2004 and analyzes the impact of the regulatory environment using the single bootstrap procedure suggested by Simar and Wilson (2007). The empirical evidence supports the hypothesis that barriers to entry, aimed at reducing competition, lower research efficiency by attenuating the incentive to innovate and to allocate resources efficiently.

Suggested Citation

  • Astrid Cullmann & Jens Schmidt-Ehmcke & Petra Zloczysti, 2009. "Innovation, R&D Efficiency and the Impact of the Regulatory Environment: A Two-Stage Semi-Parametric DEA Approach," Discussion Papers of DIW Berlin 883, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp883
    as

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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.97907.de/dp883.pdf
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    Citations

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    Cited by:

    1. Pawel Dobrzanski & Sebastian Bobowski, 2020. "The Efficiency of R&D Expenditures in ASEAN Countries," Sustainability, MDPI, vol. 12(7), pages 1-26, March.
    2. Benedikt Herrmann & Alexander Kritikos, 2013. "Growing out of the crisis: hidden assets to Greece's transition to an innovation economy," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
    3. Yongqi Feng & Haolin Zhang & Yung-ho Chiu & Tzu-Han Chang, 2021. "Innovation efficiency and the impact of the institutional quality: a cross-country analysis using the two-stage meta-frontier dynamic network DEA model," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(4), pages 3091-3129, April.
    4. Maxim Kotsemir, 2013. "Measuring National Innovation Systems Efficiency - A Review of DEA Approach," Post-Print hal-00865875, HAL.
    5. Monica Roman, 2010. "Regional Efficiency Of The Knowledge Economy In The New Eu Countries: The Romanian And Bulgarian Case," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 4(1), pages 33-53, JUNE.
    6. Chiang-Ping Chen & Jin-Li Hu & Chih-Hai Yang, 2013. "Produce patents or journal articles? A cross-country comparison of R&D productivity change," Scientometrics, Springer;Akadémiai Kiadó, vol. 94(3), pages 833-849, March.
    7. Myoungjae Choi & Ohjin Kwon & Dongkyu Won & Wooseok Jang, 2021. "Identifying the Policy Direction of National R&D Programs Based on Data Envelopment Analysis and Diversity Index Approach," Sustainability, MDPI, vol. 13(22), pages 1-17, November.
    8. Luh, Yir-Hueih & Jiang, Wun-Ji & Huang, Szu-Chi, 2016. "Trade-related spillovers and industrial competitiveness: Exploring the linkages for OECD countries," Economic Modelling, Elsevier, vol. 54(C), pages 309-325.
    9. Roman, Monica & Suciu, Christina, 2012. "Analiza eficienţei activităţii de cercetare dezvoltare inovare prin metoda DEA [The Efficency Analysis Of R&D Activities By Using Dea]," MPRA Paper 44000, University Library of Munich, Germany.
    10. Proksch, Dorian & Haberstroh, Marcus Max & Pinkwart, Andreas, 2017. "Increasing the national innovative capacity: Identifying the pathways to success using a comparative method," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 256-270.
    11. Martina Halaskova & Beata Gavurova & Kristina Kocisova, 2020. "Research and Development Efficiency in Public and Private Sectors: An Empirical Analysis of EU Countries by Using DEA Methodology," Sustainability, MDPI, vol. 12(17), pages 1-22, August.
    12. Yongrok Choi & Siyu Li & Hyoungsuk Lee, 2024. "Korean Paradox of Public Support for the Research and Development Investment in the Sustainable Performance of the Regional Economy," Land, MDPI, vol. 13(6), pages 1-20, May.
    13. Chia-Chin Chang, 2015. "Influences of knowledge spillover and utilization on the NIS performance: a multi-stage efficiency perspective," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(5), pages 1945-1967, September.
    14. Drivas, Kyriakos & Economidou, Claire & Tsionas, Efthymios G., 2014. "A Poisson Stochastic Frontier Model with Finite Mixture Structure," MPRA Paper 57485, University Library of Munich, Germany.
    15. Alessandro Fiorini, 2016. "Technical efficiency in a technological innovation system perspective: The case of bioenergy technologies R&D resources mobilisation in a sample from EU-28," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2016(2), pages 107-127.
    16. M. Foddi & S. Usai, 2012. "Regional innovation performance in Europe," Working Paper CRENoS 201221, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    17. 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.
    18. Marta Foddi & Stefano Usai, 2013. "Regional Knowledge Performance in Europe," Growth and Change, Wiley Blackwell, vol. 44(2), pages 258-286, June.
    19. Wenzhong Ye & Yaping Hu & Lingming Chen, 2021. "Urban Innovation Efficiency Improvement in the Guangdong–Hong Kong–Macao Greater Bay Area from the Perspective of Innovation Chains," Land, MDPI, vol. 10(11), pages 1-19, October.

    More about this item

    Keywords

    R&D efficiency; data envelopment analysis; truncated regression; regulation;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

    NEP fields

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