Measuring the efficiency, effectiveness and changeability of institutions for improving national innovation system

Abstract

Institutions, as structural components of the National Innovation System (NIS) play an important role in NIS performance and many economists have proven it. In the NIS context, some researchers argued that institutions are X-efficient and X-effective but they didn’t open up that much about how to measure them. Therefore, in this study, an eightfold typology based on the three new performance elements, namely ‘efficiency’, ‘effectiveness’ and ‘changeability’ has been presented. Since institutions are investigated in the context of a system, inputs and outputs of each institution in its relationship with other institutions are selected as the base for measuring performance elements. Based on this new typology, the relational performance of eight institutions in Iran’s National Innovation System is measured. The results show that based on the eightfold typology, none of the studied institutions are in type 1 (appropriate efficiency, effectiveness and changeability at the same time) or type 2 (appropriate efficiency and effectiveness at the same time). Finally, in order to improve the relational performance of each type of institution and the overall function of NIS, eight strategies including ‘growth’, ‘status quo’, ‘conversion’, ‘operational efficiency’, ‘drift’, ‘layering’, ‘displacement’ and ‘exhaustion’ have been proposed based on the calculated performance.

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