Effectiveness of Selected Knowledge-Based Determinants in Macroeconomics Development of EU 28 Economies

Abstract

The stage of development of knowledge-based economy depends not only on the effectiveness of the innovation system but on the effectiveness of economic and institutional regime, education of population and information and communication technology. The aim of this paper is to determine which of the selected determinants of the knowledge-based economy provide the intended macroeconomic effects. The measurement of the effectiveness is performed by data envelopment analysis. In the case of inefficient determinants, DEA enables to detect how such a determinant should be regulated or modified to become more effective. We employed DEA models and analysed the effectiveness of inputs involved in the macroeconomic processes. We used data from Eurostat for EU28 countries in the years 2011 – 2015. The results show that minority of EU countries were efficient and that these countries were at different levels of knowledge economy. The implications can be generalized for several types of knowledge-based economies.