World production of innovation: a study of its technical efficiency (2000-2009)

This paper analyses the determinants of global innovation with a focus on technical efficiency. To this end, we propose a theoretical model which specifies a transcendental logarithmic production function, which includes a number of inputs that influence innovation, such as technological capital, human capital and scientific capital. Subsequently, we estimate technical efficiency with stochastic econometric methods. The article considers the importance of human capital to boost production innovation worldwide. Also, it highlights that in recent years Asian countries have become leaders in technical efficiency.