Reevaluating national innovation systems: An index based on dynamic-network data envelopment analysis

Abstract

The aim of this study is to propose a novel analytical framework to evaluate the national innovation system (NIS) based on dynamic-network data envelopment analysis. This framework is then applied to a sample of 23 countries involved in oil production, enabling a comparative analysis of their performance in relation to the top 10 innovative countries as determined by the Global Innovation Index (GII).Unlike the GII, the proposed framework measures the efficiency score of each NIS, generates a new index based on these scores, suggests a set of target policies for countries aiming to improve their ranks, and conducts an in-depth longitudinal analysis to identify the underlying factors influencing efficiency dynamic over time.The empirical results show that the efficiency of the selected countries remains relatively steady over the designated study period. Upon closer examination at the country level, it becomes evident that Korea and Sweden emerge as the frontrunners in terms of performance, thereby establishing themselves as leaders in the field of innovation. Germany and Ukraine are identified as leaders in knowledge development, whereas Romania and Singapore are recognized as leaders in knowledge commercialization.To enhance the performance of the inefficient NIS, this study proposes targeted improvement policies, prioritizing underperforming countries to elevate their overall innovation system. These policy interventions aim to bridge the gap between the least efficient nations and global best practices, fostering a more competitive innovation landscape. Ultimately, the proposed analytical framework holds the potential to foster the performance of each country's national innovation system.