An empirical investigation of the National Innovation System (NIS) using Data Envelopment Analysis (DEA) and the TOBIT model

Afzal, Munshi Naser Ibne (2014) An empirical investigation of the National Innovation System (NIS) using Data Envelopment Analysis (DEA) and the TOBIT model. International Review of Applied Economics, 28 (4). pp. 507-523. ISSN 0269-2171


The goal of this paper is to investigate national innovation systems' input–output components and to model a robust efficiency measurement using the DEA Bootstrap technique. Most of the previous NIS studies are descriptive and little emphasis is given to complex analysis. In our previous study, we evaluated the innovation performance of 20 emerging and developed countries, from the point of view of technical efficiency. This study makes an important contribution using the DEA Bootstrap technique, whereby we rank the countries based on bias-corrected estimation parallel to conventional DEA efficiency. The efficiency scores obtained from this technique show which countries are considered to be innovation leaders because their innovation performance is efficient under both constant and variable returns to scale in the process of transforming innovation inputs into innovation outputs. We suggest some key policy implications that can be learned from these innovation leaders. Subsequently, we apply the Tobit model to explain inefficiency. Based on the Tobit regression model, the DEA CRS technical efficient score of inefficient countries could be improved through three main variables: the secondary school enrolment ratio; the labour force (ages 15–65), as a percentage of the total population; and domestic credit expansion by the business
sector, as a percentage of GDP.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: © 2014 Taylor & Francis. Permanent restricted access to published version due to publisher copyright policy.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 14 Feb 2015 06:30
Last Modified: 20 Apr 2015 04:51
Uncontrolled Keywords: national innovation system; knowledge economy; DEA bootstrap technique; Tobit model; inefficiency
Fields of Research : 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150307 Innovation and Technology Management
16 Studies in Human Society > 1605 Policy and Administration > 160505 Economic Development Policy
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9199 Other Economic Framework > 919999 Economic Framework not elsewhere classified
Identification Number or DOI: 10.1080/02692171.2014.896880

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