EFFICIENCY AND CONVERGENCE OF THE INNOVATION: A STUDY OF TECHNOLOGICAL PROGRESS FOR DEVELOPED AND DEVELOPING COUNTRIES

Abstract

This paper aims to analyze the technical efficiency levels for developed and developing countries in generating scientific and technological progress for the years 2000 and 2010. More specifically, we intend to analyze the total factor productivity (TFP) through Malmquist index and measure the convergence efficiency of countries for more efficient groups through the data envelopment analysis (DEA) and Markov chains. Most countries were technically inefficient in the analyzed period and approximately 61% of those had increased productivity, and changes in the production process of the same technology were more significant. We noticed that more than half of the countries converge to the most efficient in generating class scientific and technological progress. We conclude that not necessarily the most developed countries will be the most efficient and productive in generating scientific and technological progress.