Abstract
This paper aims to compare relative efficiency of the knowledge triangle policy in 25 EU member states providing evidence on the knowledge triangle technical efficiency calculated relying on output-oriented Data Envelopment Analysis (DEA) model assuming variable returns to scale (VRS). Moreover, the knowledge triangle efficiency indices are calculated, utilising the concept of actual and target inputs. Results obtained under output-oriented VRS model may signify overall effectiveness of the EU knowledge triangle policy. A more detailed analysis of output-oriented knowledge triangle efficiency indices reveals more differentiation among some countries. There are also significant variations among efficient decision-making units (DMUs) revealed through reference share analysis. Outcomes of this research may suggest the need of modification and/or strengthening of the knowledge triangle policy in some EU member states. The results obtained should however be treated with caution because they are influenced by the choice of variables.
Highlights
The notion of knowledge-based economy is gaining its recognition among both economists and policymakers at the EU level
Three output-oriented knowledge triangle efficiency indices may be constructed for each decision-making units (DMUs): hightechnology export-oriented knowledge triangle efficiency index (EKTEI), scientific and technical publication-oriented knowledge triangle efficiency index (PKTEI) and nontechnological innovation-oriented knowledge triangle efficiency index (NKTEI)
Creation and usage of knowledge should be a basis for development policies addressed to various economic branches and implemented at different levels of governance
Summary
The notion of knowledge-based economy is gaining its recognition among both economists and policymakers at the EU level. There is a tendency to shift from a traditional definition of innovation understood as new or improved products, services, processes or improved organisational strategies towards innovation described as ‘the ability of individuals, companies and entire nations to continuously create their desired future’ (Kao as quoted in European Commission 2009a) This new approach to innovation emphasizes that education and training are vital for innovation and knowledge creation. Modernisation of Europe’s universities involving their interlinked roles of education, research and innovation, has been acknowledged as a core condition for the success of the broader Lisbon Strategy, but as part of the wider move towards an increasingly global and knowledge-based economy (European Commission 2006). Knowledge supply and demand (strengthening Knowledge circulation (linkages between the vertices of the knowledge triangle) vertices of the knowledge triangle)
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