Eastern European Business and Economics Journal

Innovation Policy and R&D Efficiency in Emerging Countries: a Stochastic Frontier Analysis



Kamilia Loukil


Loukil K. 2016. Innovation Policy and R&D Efficiency in Emerging Countries: a Stochastic Frontier Analysis. Eastern European Business and Economics Journal 2(3): 165-192.


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António CALEIRO, Universidade de Évora, Portugal;

Jan HAUKE, Adam Mickiewicz University, Poland;

Cornel IONESCU, Institute of National Economy, Romania;

Olena SOKOLOVSKA, Institute Of Industrial Economics of National Academy of Sciences of Ukraine, Ukraine.



Understanding the process of innovation and its relationship with public policy was analyzed in many studies conducted in advanced economies. In the context of developing countries, some authors have even understated the role of innovation. This paper addresses these issues, which are relatively neglected in the literature. It focuses on the evaluation of innovation policy in emerging countries. Such evaluation is very crucial as it serves as a guide to public spending and resource allocation. In this study, we aim to examine the impact of public support on R&D efficiency in 10 emerging countries over the period from 2001 to 2010. The stochastic frontier approach is applied to estimate the relative efficiency of R&D of each country and its determinants. We estimate two stochastic frontier models where human and physical resources of R&D are the inputs employed to produce an output: patents in the first model and scientific publications in the second model. Determinants of R&D efficiency are innovation policy instruments: increase of R&D investments, promotion of interactions between the actors of innovation system, promotion of human capital, and protection of intellectual property rights. Results are different depending on the nature of the output. Indeed, in the case of patent-oriented R&D efficiency, only the tools for human resources and intellectual property rights allow to improve the level of national R&D efficiency. In the case of scientific publication-oriented R&D efficiency, public research, human resources and intellectual property rights are effective public tools to improve R&D management quality.



Innovation, innovation policy, R&D efficiency, stochastic frontier analysis


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