Public R&D Expenditure Efficiency and Knowledge Creation in CEE Region
DOI:
https://doi.org/10.61357/sehs.v8i2.67Keywords:
R&D, public sector, knowledge creation, DEA, CEEAbstract
In this paper we use the data envelopment analysis (DEA) to analyze the efficiency of public expenditure on R&D in Central and Eastern European countries (CEE), using knowledge creation and knowledge diffusion as key output indicators. Our results show that most CEE countries do not use public R&D resources efficiently and that the current level of expenditure should generate much better results on the Global Innovation Index scale. Thus, we believe that instead of increasing the level of public expenditure on R&D, the CEE countries need to increase efficiency first. In order to do so, these countries should continue to improve their institutional framework in terms of government effectiveness, business climate and suppression of corruption. The increase in R&D efficiency is of great importance for the CEE countries as they look for new knowledge-based growth models that are more challenging for policy makers than pre-crisis models, which were based on physical capital accumulation and adoption of technologies from abroad.
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