National innovation efficiency: a DEA-based measurement of OECD countries

Abstract

Purpose The purpose of this study is to measure and analyze the national innovation efficiency of organisation for economic co-operation and development (OECD) countries. This is to determine to what extent OECD countries efficiently use the elements that enable innovation activities possible in generating innovation outputs. Design/methodology/approach An input–output model was constructed to measure efficiency. The inputs and outputs in the research model are the input and output sub-indices of the Global Innovation Index. Data envelopment analysis was used to measure the national innovation efficiency levels of OECD countries. Findings The results show that national innovation efficiency is generally high in OECD countries. However, some countries lag behind in innovation efficiency. OECD countries’ ability to create and provide the elements that enable innovation activities is higher than their ability to create innovation outputs. OECD countries have a good innovation environment and a high level of resources, but they should focus on how to create more innovation outputs. Originality/value This study presents a measurement of national innovation efficiency of OECD countries which contributes “Innovation Strategy” agenda. The results empirically show that overall innovation indices cannot be the only indicator of the performance of national innovation systems. In this study, an innovation efficiency/performance matrix is constructed to present the relative positions of the countries to help in examining countries’ strengths, weaknesses and potentials based on innovation efficiency and innovation performance simultaneously. This study contributes to the literature by presenting a broader perspective and measurement of national innovation efficiency by taking an extensive number of indicators into account.