Differences in Efficiency of Innovation Performance among Middle Income Countries: An Empirical Approach

Abstract

The purpose of this paper is to determine empirically the differences in the efficiency of innovation performance in middle-income countries. To achieve this aim, it was used cluster analysis which is one of the multivariate statistical techniques. Ward’s agglomerative hierarchical method was employed for cluster analysis. In determining efficiency of innovation performance, it was followed process suggested by Kula and Ünlü (2019). So, cluster analysis was performed separately for inputs and outputs indicators. Secondly, discriminant analysis was used to identify factors that lead to differences in the efficiency. According to the World Bank's income classification, it was included a total of 54 countries, including 23 lower-middle income and 31 upper-middle income. The data used in the analysis was obtained from Global Innovation Index. The findings confirm the existence of the inefficiency problem in terms of innovation performance in the middle income countries.