Innovation requires an ecosystem comprising talent, funding, support, infrastructure, and community. Academically, many studies quantify innovation efficiency, with Data Envelopment Analysis (DEA) being a key approach due to its ability to handle multiple inputs and outputs while leveraging each Decision Making Unit's (DMU) strengths. However, few studies systematically analyze efficiency across different startup stages while considering ecosystem significance.
This study applies Network DEA to evaluate startup creation and growth across three processes: knowledge production, knowledge commercialization, and business growth. It assesses "knowledge production efficiency," "knowledge commercialization efficiency," "business growth efficiency," and "overall efficiency." Findings reveal that Japan excels in knowledge production and commercialization efficiency but lags slightly (in comparison with the highest group) in business growth efficiency compared to top-performing countries. These insights help identify focus areas for Japan's future startup policy.
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