Working Paper

Building BRICS: 2-Stage DEA analysis of R&D Efficiency


  • Cai
  • Y.
  • Hanley
  • A.
Publication Date

Should inputs such as bank finance affect innovation in BRICS vs. developed countries similarly? Arguably these elasticities may depend on a country’s economic progress (Gerschenkron, 1962; Liu and White, 2001). Applying a combination of DEA and Tobit to a sample of 22 countries, we show how innovation (measured patents, scientific publications and high-tech sectoral output) responds favourably to private-sector R&D. No significant differences are recorded for BRICS countries. Differences emerge between BRICS and non-BRICS for the elasticity of innovative efficiency to banking inputs.

Kiel Institute Expert


JEL Classification

Key Words

  • BRICS countries
  • DEA
  • innovation
  • National Innovation System (NIS)