R&D Efficiency and the National Innovation System: An International Comparison Using the Distance Function Approach

17 Pages Posted: 4 Dec 2013

See all articles by Jin‐Li Hu

Jin‐Li Hu

National Chiao Tung University

Chih‐Hai Yang

National Central University - Department of Economics

Chiang‐Ping Chen

National Central University

Date Written: January 2014

Abstract

This paper applies the distance function approach for stochastic frontier analysis (SFA) to compare research and development (R&D) efficiency across 24 nations during 1998–2005. In this multiple input–output framework, R&D expenditure stock and R&D manpower were inputs, while patents, scientific journal articles, and royalties and licensing fees (RLF) were outputs. Intellectual property rights protection, technological cooperation among business sectors, knowledge transfer between business sectors and higher education institutions, agglomeration of R&D facilities, and involvement of the government sector in R&D activities significantly improve national R&D efficiency.

Keywords: distance function approach, national innovation system, R&D efficiency

JEL Classification: O32, O57

Suggested Citation

Hu, Jin-Li and Yang, Chih-Hai and Chen, Chiang‐Ping, R&D Efficiency and the National Innovation System: An International Comparison Using the Distance Function Approach (January 2014). Bulletin of Economic Research, Vol. 66, Issue 1, pp. 55-71, 2014, Available at SSRN: https://ssrn.com/abstract=2363188 or http://dx.doi.org/10.1111/j.1467-8586.2011.00417.x

Jin-Li Hu (Contact Author)

National Chiao Tung University ( email )

No. 1001, Daxue Rd, East District
Hsinchu, 300
Taiwan

HOME PAGE: http://jinlihu.tripod.com

Chih-Hai Yang

National Central University - Department of Economics ( email )

NO.300 Jung-da Rd.
Jung-li City
Taoyuan, 320,R.O.C
Taiwan

Chiang‐Ping Chen

National Central University

No. 300, Zhongda Road
Chung-Li Taiwan, 32054
Taiwan

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