Regional Innovation Systems: How to Assess Performance

Abstract

This paper applies Data Envelopment Analysis [DEA] methodology to the evaluation of regional innovation system performance based on information provided by the European Innovation Scoreboard [EIS] for 2002 and 2003. We find that those European regions ranked in the EIS as showing better performance in high-technology areas, are ranked somewhat differently according to DEA. The results of our study show that the higher the technological level of a region, the greater is the need for system coordination. Where this is lacking there is a loss of performance efficiency compared to other similar regions. Policy making in relation to Regional Innovation Systems (RIS) has in the past depended on systemic analysis. Here, we propose a methodology that combines quantitative and qualitative analyses to enrich the knowledge base for future policy decision making.