Global innovation efficiency assessment of EU member and candidate countries via DEA-EATWIOS multi-criteria methodology

Abstract

Globalization and changing levels of competition highlight the importance of innovation and innovation management, as well as their efficiency, as a critical economic factor for countries. In fact, the perspectives on innovation effectiveness are seen as essential success factors in achieving economic prosperity and competing in the markets. Global innovation efficiency, which is vital for both the European Union member and candidate countries and one of the determinants of the competitive process throughout the world, helps the economies catch up with the developing and changing technology while revealing the innovation perspectives of the countries. The aim of this study is to examine and compare the global innovation efficiency that can be considered as crucial economic factor for European Union member and candidate countries by using the Global Innovation Index (GII), published jointly by Cornell University and WIPO in 2020 in terms of innovation inputs and outputs. Data Envelopment Analysis (DEA) and Efficiency Analysis Technique with Input and Output Satisficing (EATWIOS) methods are applied for comparison. According to the study's findings, the Netherlands, Germany, and Sweden are obtained as the most important countries in terms of global innovation efficiency. Nevertheless, Lithuania, Greece, and North Macedonia have been ranked as the last three inefficient countries. Further, some suggestions are made to eliminate the deficiencies of non-innovative countries.