International Comparison Of Innovative Efficiency

With the globalization of innovation, innovation becomes the endogenous factor to drive the growth of country’s economy, which has already become one of the important indicators to measure a country’s international competitiveness. During different economic periods, countries exist differences in innovative efficiency and innovative capability. Through blindly increasing innovative input, countries can’t get the same proportion increase in the innovative output. Therefore, the measuring countries’innovative efficiency and place in the global innovation system accurately will have realistic meaning on the construction of companies’innovative capability.This paper applies the distance function approach for stochastic frontier analysis (SFA) to compare innovative efficiency across38nations during2000—2010. Firstly, this paper conducts two-stage model, in which the innovative efficiency is divided into R&D efficiency and transfer efficiency by introducing intermediate indicator. Secondly, this paper selects an appropriate production function by hypothesis tests to construct an output-oriented distance function. Based on Battese, Coelli(1995) model, this paper uses Stochastic Frontier Analysis to estimate two-stage innovative efficiency and analyze the per capita GDP factor. Lastly, this paper compares output elasticity and two-stage innovative efficiency across countries of different income levels.The results are that the influence of per capita GDP varies in two-stage of innovation. And countries at different levels of income exist differences in the output elasticity and innovative efficiency. The output elasticity of human labor in high-income countries is stronger than that of middle-income countries, but the output elasticity of funds in high-income countries is weaker than that of middle-income countries, which explains high-income countries’innovation model is human-driven but middle-income countries’innovation model is funds-driven. The R&D efficiency in high-income countries is higher than that of middle-income countries, but the transfer efficiency in high-income countries is lower than that of middle-income countries. And the trends of R&D efficiency and transfer efficiency across countries at different levels of income exist different.