Measuring the effectiveness of R&D expenditures in OECD countries with DEA model

In this age where technology and information technologies change and develop rapidly, it is an important issue for countries to catch up with these changes in time or to lead technological developments in terms of providing competitive advantage in the globalizing world. R&D activities are critical for countries for this change and development. With the R&D activities carried out, countries both increase the level of welfare and ensure stability by keeping up with the harsh competition conditions in the global markets. The effectiveness of R&D activities is of great importance at this stage due to its guiding position for countries. The effectiveness of R&D expenditures indicates which areas should be allocated more budget and in which areas improvements should be made. In addition, measuring the effectiveness of R&D expenditures facilitates the comparison of countries with each other. The aim of this study is to analyze the efficiency of R&D expenditures of OECD countries within the scope of 2015-2017; To analyze in two models, Academic Effectiveness and Technological Efficiency. From this point of view, "Which OECD countries' R&D expenditures are academically and technologically efficient?" The answer to the question has been sought. For the analysis method, Charnes et al. (1978) and Banker et al. (1984) Data Envelopment Analysis models developed by CCR (CRS) and BCC (VRS) models were preferred. Analyzes were performed using the DEAP 1.3.0 software program. Input variables under Model-1 for Decision-Making Units consisting of 30 OECD countries; Share of R&D expenditures in GDP and number of researchers per 1000, output variables; IP5 patent numbers and scientific publication numbers, input variables within the scope of Model-2; Share of R&D expenditures in GDP and number of researchers per 1000, output variables; IP5 is the number of patents and the share of high-tech product exports in total exports. According to the results of the study, as a result of the efficiency analysis according to the CRS and VRS model, in the 2015-2017 period within the scope of Model-1 Academic Activity, it was observed that Japan and the USA were effective in both models. As a result of the efficiency analysis made according to the CRS and VRS model in the 2015-2017 period within the scope of Model-2 Technological Efficiency, it was determined that Japan and Mexico were effective in both models.