Creating Innovations, Productivity and Growth - the efficiency of Icelandic firms
Iceland is one of the smallest European economies and the country was hit severely by the 2008-financial crisis. This paper considers the economy in the period preceding the collapse. Applying a Data Envelopment Analysis on 204 randomly selected firms, the results suggest that a substantial fraction...
| Main Authors: | , |
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| Format: | Report |
| Language: | unknown |
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| Online Access: | https://static.sys.kth.se/itm/wp/cesis/cesiswp162.pdf |
| Summary: | Iceland is one of the smallest European economies and the country was hit severely by the 2008-financial crisis. This paper considers the economy in the period preceding the collapse. Applying a Data Envelopment Analysis on 204 randomly selected firms, the results suggest that a substantial fraction of the Icelandic firms can be classified as non-efficient in their production process. The production scale of many manufacturing firms is too small to be technically efficient, while service firms typically use excessive resources in their production process. A remarkably weak performance in transforming R&D and labour efforts into successful innovations is observed. Technical efficiency; R&D; Innovation; Productivity |
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