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On a certain approach to comparing the regions in different countries based on estimated technical efficiency of innovative space

Vol. 18, Iss. 9, SEPTEMBER 2019

Received: 29 May 2019

Received in revised form: 10 June 2019

Accepted: 28 June 2019

Available online: 30 September 2019


JEL Classification: C12, C51, R15

Pages: 1753–1774

Afanas'ev M.Yu. Central Economics and Mathematics Institute of RAS (CEMI RAS), Moscow, Russian Federation

Kudrov A.V. Central Economics and Mathematics Institute of RAS (CEMI RAS), Moscow, Russian Federation

Lysenkova M.A. Central Economics and Mathematics Institute of RAS (CEMI RAS), Moscow, Russian Federation

Subject We assess the technical efficiency of innovative space in regions of different countries.
Objectives The purpose is to get comparable estimates of technical efficiency of innovative space in regions of different countries that retain the rank of regions formed according to ‘national models’.
Methods The study rests on the concept of a stochastic frontier and an optimization model with a quadratic target function and linear limitations.
Results We offer an approach enabling to adjust the technical efficiency estimates obtained from the model, which is common to the entire population of regions, so that they retain the rank of regions formed according to ‘national’ models. This approach provides comparable technical performance assessments in a wide range of tasks to model the limits of production capacity of economic facilities that are operating in different institutional environment.
Conclusions A natural way to obtain comparable technical performance estimates is to build a common model for the entire population of regions. However, the results of the general model seldom have a satisfactory economic interpretation, as the innovation activities of regions of different countries is conditioned by different institutional environment. Using the offered model, the estimates derived from the general model are adjusted so that their grades are fully in line with the estimates received from the so called ‘national’ models.

Keywords: regional economics, econometric modeling, stochastic frontier, performance evaluation


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Vol. 18, Iss. 9
September 2019