Abstract:

The lack of resources makes it compulsory for countries to adapt to innovation in capturing stable growth. The source of innovation is research development activities.  The purpose of this study is to reveal the determinants of the effectiveness of research development. The study used data from 16 OECD countries from the period 1996-2014. First, the effectiveness values of research development are calculated by the Data Coverage Analysis Method. The Total Factor Efficiency was later achieved as the determiner of the effectiveness of research development. The Malmquist Index Method has been applied to the overall Factor Efficiency Calculation. In the final stage of the research, Tobit Model was predicted where the effectiveness values of research development were used as a dependent variable. The total factor efficiency, energy consumption and direct foreign investment data calculated as an independent variable have been used.  According to the Tobit model forecast results, the overall factor efficiency and energy consumption variables are correct on the effectiveness of research development, while foreign direct investments have a reverse effect.