Abstract

A blossoming stream of the regional innovation systems (RIS) literature is being devoted to investigate the relationship between RIS efficiency and productivity growth. Our study aims at evaluating: first, the ex-post relative technical efficiency in innovation in a sample of OECD regions by means of a DEA (data envelopment analysis) methodology. We will also match these results with regression analysis of a “knowledge production function”. Secondly, it aims at assessing if there is a positive linkage between increased efficiency in innovation and productivity at regional level. We find some consistency between the DEA and knowledge production function analysis, with, for example, EU regions overtaking US regions when performance in Tertiary Education is concerned. We also find that innovation inputs and outputs are positively related to productivity although patents are a very imperfect measure for innovation. The policy implications from the empirical results are of uttermost relevance for local governments and administrations, especially when evaluating the leverage given by the inputs in the knowledge production function, and since, increasingly, RIS are seen as a target for economic policy while pursuing the more general objective of competing in the global innovation economy. JEL Classification: R11

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