What Explains R&D Efficiency Differences Across U.S. States

Abstract

In this study we use data envelopment analysis to calculate relative efficiencyindices of states with regard to the use of research and development (R&D) funds. Thenwe use regression analysis to explore the contributing factors to the observed efficiencydifferences. Our estimates indicate that number of firms, and college and universityenrollment ratios have significant impact on how efficiently a state uses its R&D funds.Regional factors also play an important role in an efficient use of R&D funds (O31; O5)