Econometric approaches to the analysis of productivity of R&D systems. Production functions and production frontiers

In this chapter we review and discuss the potential and limitations of econometric methods for the evaluation of productivity of scientific and technological (S&T) systems. We examine and compare the main approaches that have been applied in the literature: the production function and the production frontier approach. Both approaches present advantages and disadvantages. In the first part of the chapter we carry out a selective review of the two fields. In the second part we focus on the last developments of the efficiency analysis literature, with particular attention to the nonparametric approach. An illustration of the potential of robust nonparametric techniques is offered using data from the Italian National Research Council (CNR). The chapter concludes by discussing the potential of these approaches for the analysis of S&T systems beyond the existing applications.