Is more always better? On the relevance of decreasing returns to scale on innovation

We contribute to the literature on assessment of innovation systems by relating amount inputs available system and its performance through concept returns scale (increasing, constant or decreasing). study what extent size relates their performance, which is estimated frontier Data Envelopment Analysis-TOPSIS methods, overcome several limitations standard DEA approach. Using same data provided European Innovation Scoreboard (EIS) for years 2010, 2013 2016, our results indicate that countries with a high tend overinvest in inputs. This into inefficiencies stemming from decreasing returns, leading lower productivity levels. Thanks DEA-TOPSIS we identify best worst performing systems. provides helpful information setting suitable reference benchmarks policy analysis decision-making. Our question current allocation resources call reconsideration how policies are designed many countries. conclude EIS become useful instrument definition policies, it should consider nature scale. would allow policymakers problems related respective systems, hence, design holistic act upon them.