Efficiency and Its Determinants in Regional Innovation Systems in South Korea 1999-2014: The Network Data Envelope Analysis

Abstract

Various studies have evaluated efficiency of regional innovation systems (RIS) and analyzed the determinants of it. However, there have been some limitations in these studies, such as the lack of analyzing dynamics in the efficiency of RIS and insufficient consideration of the internal processes of RIS. Therefore, we use a two-stage approach in employing network DEA, first constructing balanced panel data for 16 local governments over 16 years (1999-2014) and then analyzing the efficiency and determinants of the Korean innovation system. The implications of the analysis are as follows: (1) negative side of the disparity of regional imbalance for the general RIS efficiency was found; (2) the R&D investment role of central government was confirmed to strengthen RIS; (3) government's simultaneous efforts to develop R&D efficiency as well as economic efficiency for the innovation system were requested; and (4) variances in South Korean RIS efficiency were unveiled.