A non-parametric systematic review of the literature and future recommendations on the efficiency of the National Innovation System

Authors

  • Elangovan Narayanan Universiti Kebangsaan Malaysia
  • Wan Rosmanira Ismail University Kebangsaan Malaysia
  • Zainol Mustafa University Kebangsaan Malaysia

DOI:

https://doi.org/10.23925/2179-3565.2024v15i2p52-82

Keywords:

Data Envelopment Analysis, DEA, Efficiency, National Innovation System

Abstract

The national innovation system (NIS) is paramount in developing innovative strategies that can boost the competitive advantage of innovations while ensuring their long-term viability on a global scale. This study intended to underscore the scarcity of current research on the efficiency of the NIS operating Data Envelopment Analysis (DEA) through a thorough systematic literature review. The researcher categorised the literature accordingly and provided recommendations for future research. The conclusion substantiated that further research on NIS efficiency is required by paying more attention to the extended DEA model, especially bootstrapping, slack-based models, relational networks, dynamic networks, and super efficiency. Such an extended DEA model would provide a more reliable and scientifically proven efficiency values. Nonetheless, non-oriented approaches require more attention  as they enable the researchers to deal with flexible measures in DEA. Since most innovation developments across countries are heterogeneous, using variable return to scale (VRS) is relevant in prospective analyses. The result confirmed a need to give more preference to institutional, infrastructural and market sophistication indicators as input variables, while creative output indicators as output variables in innovation efficiency measurement. These variables are critical in determining the value of innovation efficiency. The result also indicated that future studies focusing on the efficiency of low-middle and low-income countries are imperative. Hence, regardless of the income group of the NIS, a comparative cross-country analysis is needed that permits the NIS to compare themselves with high-calibre innovators and enhance their innovation performance. The comparative analysis would also provide policymakers with valuable data and a global sense of innovation.

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2024-08-15

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