86th International Atlantic Economic Conference

October 11 - 14, 2018 | New York, USA

Efficiency of knowledge management: Data envelopment analysis dynamic network

Saturday, 13 October 2018: 5:30 PM
América Zamora Torres, PhD , Instituto de investigaciones Económicas y Empresariales, Michoacan University of Saint Nicholas of Hidalgo, Morelia, Mexico
Antonio Favila-Tello Sr., PhD , Michoacan University of Saint Nicholas of Hidalgo, Morelia, Mexico
In a world where practically, all countries carry out activities to promote the generation and dissemination of knowledge, the high concentration of important innovations as well as the generation of new products and services for the global market represents a challenge for scholars of the world. This challenge also has profound implications for the elaboration of policies and for the promotion of long-term economic growth (Furman, Porter and Stern, 2001).This paper seeks to measure efficiency in the generation, diffusion and impact of knowledge in a group of 33 countries using a two-stage Dynamic Network Data Envelopment Analysis. It is based on the hypothesis that three inputs, institutions, human capital and infrastructure, in turn generate two carry-overs, the sophistication of the market and business sophistication. These in turn create four outputs that depict the capacity of innovation of each denominated economy: products of knowledge and technology, creation of knowledge, impact of knowledge and diffusion of the knowledge. Results suggest that the most efficient country in the above activities is Ireland with a score of 1.0 at all stages of the study. Other prominent countries are Israel, the United States and Belgium in the first phase analysis and Estonia, Hungary, Korea, Switzerland and Sweden in the second stage. For the Mexican case it is possible to detect an efficiency gap that separates it from outstanding nations when obtaining values close to 0.64. Some recommendations for Mexico include implementing improvements to its institutional, regulatory and political environment, in order to strengthen the private sector and generate trained human capital. Our data sources are the Global Innovation Index and the World Intellectual Property Organization.

Keywords. DEA, Knowledge, Innovation, Diffusion, Impact