METHODOLOGICAL DEBATE ON THE ‘REGIONAL INNOVATION SCOREBOARD’.
METHODOLOGICAL DEBATE ON THE ‘REGIONAL INNOVATION SCOREBOARD’.
Annex III Methodology to obtain the efficiency measurement of a system
To find a production possibility frontier (i.e. the maximum output that can be obtained with a given input level), the following maximisation problem is proposed based on the RIS data (Charnes et al., 1978):
(4)
This problem involves maximising the ratio of weighted outputs and inputs, subject to the maximum value of this ratio being equal to 1. The most efficient regions (i.e. those on the production possibility frontier) will therefore have a technical efficiency measurement equal to 1, and the rest will be in the interval between 0 and 1.
III
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