Articles

National Innovation Systems (NIS): Theories, Practices and Empirical Investigation with Non-parametric Partial Frontier Analysis

Munshi Naser Ibne Afzal and Shamim Ahmad Siddiqui

Abstract

The main goal of this paper is to investigate national innovation systems’ (NIS) input-output components and model a robust efficiency measurement using the partial frontier order-α technique. We evaluate the innovation performance of 20 emerging and developed countries from the point of view of technical efficiency. Given that the innovation process is one of the main drivers for knowledge-based economic growth, it is clear that we need innovation policies based on rigorous quantitative analysis. Most of the previous NIS studies are descriptive and little emphasis is given to complex analysis. This study makes an important contribution using the partial frontier order-α technique whereby we rank the countries based on outliers-corrected estimation rather than only conventional DEA/FDH efficiency which often causes a dimensionality problem. The efficiency scores obtained from this technique demonstrate outliers-free results of benchmark countries. We suggest some key NIS policy implications that can be learned from the innovation leaders the study identifies.? 

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