A TOBIT MODEL APPLICATION ON THE DETERMINANTS OF R&D EFFICIENCY

The scarcity of resources obliges them to adapt to innovation to achieve steady growth of countries. The source of innovation is research and development activities. The aim of this study is to reveal the determinants of the effectiveness of research and development. 1996-2014 period data of 16 OECD countries were used in the study. Firstly, the efficiency values of research and development were calculated by Data Envelopment Analysis Method and then Total Factor Productivity, which is considered to be the determinant of the effectiveness of research and development, was obtained. Malmquist Index Method was used in Total Factor Productivity calculations. In the final stage of the study, Tobit Model in which the efficiency values of research and development are used as dependent variables was estimated. Total factor productivity calculated, energy consumption and foreign direct investment data were used as independent variable. According to Tobit model estimation results, it was determined that total factor productivity and energy consumption variables have a directed line effect on the efficiency of research and development, while foreign direct investment has a back line effect on the efficiency of research and development