Efficiency Analysis of Regional Innovation Development Based on DEA Malmquist Index

Abstract

The aim of the work was to evaluate the dynamics of regional innovation development and compare the Russian regions according to their innovation efficiency, used resources, and achieved results. To estimate direct and indirect innovation effects, this study used the data on Russian regions according to variables of the innovative product volume, the share of high-tech products in the gross regional product (GRP) structure, the number of used patents, and investment in innovation activity for 2006–2017. To obtain a representative sample, a cluster analysis was applied as a preliminary step, which made it possible to select a group of regions that were most advanced in terms of their innovative development. Output-oriented data envelopment analysis models were applied for Malmquist Productivity Index calculation. The obtained results indicate the average growth of total factor productivity of regional innovation development over time. The main source of innovative development is largely derived from the economy of scale, while the effectiveness of regional innovation systems is basically increasing through broader resource bases, rather than through its effective utilization. The research findings can be applied to diagnose regional innovation effectiveness, justify public investment in research and development (R & D), and identify the priorities of regional innovation policy for specific regions.

Keywords

• data envelopment analysis
• Malmquist Index
• cluster analysis
• regional innovation system