National Characteristics: Innovation Systems from the Process Efficiency Perspective

Abstract

This study compares the innovation system characteristics of 40 countries from the perspective of process efficiency. We treat the national innovation system as a two‐stage process that first produces knowledge and then commercializes the knowledge produced. After identifying efficiencies through data envelopment analysis, the within‐country strengths, or the contribution of the individual process factor to the efficiency, of all 40 target countries are compared by applying the network‐based ranking method. The comparison is different from previous efficiency‐based studies in that it hints at country characteristics and highlights the cross‐country benchmarks for each process factor. The pattern of within‐country strengths underlines the characteristic of each country. Based on country characteristics, we highlight the national differences and categorize the target countries into nine distinctive groups. We find that no single country demonstrates characteristics that focus on both the knowledge production and knowledge commercialization stages. The results provide policy makers with both references on what to improve and information for where to learn the experience from.