Journal Article

Innovation Rankings: Good, Bad or Revealing?

Applied Economics Letters, 21(5): 325-328

The standard indicators used to compare cross-country innovation are in the Global Competitiveness Report (GCR). But there are problems with aggregation and response bias with these largely self-reported measures (Hollanders and van Cruysen, 2008).

We propose a theory-based metric using Data Envelopment Analysis which corrects for sample bias and considers Returns to Scale. The derived ranking compares well to components of the GCR. Moreover, in second-stage estimations, our corrected efficiency score correlates well with standard Growth Theory indicators.


Yuezhou Cai


Publication Date
JEL Classification
C14, C61, O38

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