Cross national comparison of innovation efficiency and policy application

European Innovation Scoreboard (EIS) proposed the revision of the innovation indicators including innovation drivers, knowledge creation and innovation and entrepreneurship describe innovation input. Application and intellectual property describe innovation output. European Commission develops the EIS as the instrument evaluates and compares the innovation performance of the member States under the Lisbon Strategy. The EIS 2005 includes innovation indicators and trend analyses for all 25 EU Member States, as well as for Bulgaria, Romania, Turkey, Iceland, Norway, Switzerland, the US, and Japan. This study utilizes the data from EIS and applies Grey Relational Analysis (GRA) and Data Envelopment Analysis (DEA) to evaluate the innovation efficiency for 33 countries. This study also provides cross-national innovation policy analysis for leading innovation efficient countries. Denmark, German, Ireland, Luxemburg, Malta, and Switzerland are the most innovation efficiency countries among 33 countries in this study.