Determining R and D efficiency of oecd countries with hierarchical DEA/AHP methodology

Technological innovations contribute to the economic growth by increasing productivity in the production process. One of the most important factors in technological innovations are research and development activities. In this study, Turkey?s relative standing among other OECD countries is determined by using hierarchical DEA/AHP methodology by means of research and development expenditures, the number of researchers, the number of triadic patent and the number of articles. With this two phase method, first data envelopment analysis (DEA) models are prepared and models are solved on LINDO programme. In the second stage, efficiency ordering is found with AHP (Analytic Hierarchy Process) method. With regression analysis made on SPSS 13.0, mathematical relationships between inputs and outputs of data envelopment analysis are defined. According to results, Turkey's position on R&D is determined and suggestions to bring Turkey more active are offered.