Efficiency Ranking of the Knowledge-Based Economy in Iran and Other Developing Countries Using a Result-Based Management Approach and Multi-layer DEA Method

Objective: Knowledge-based economy is recognized as one of the main pillars of sustainable development and a driving force for innovation and entrepreneurship in today’s world. The competitive advantage of countries is no longer primarily dependent on natural resources; rather, technological capabilities, the level of innovation, and the quality of knowledge-based infrastructure are considered the main determinants of national success. In this context, countries that can efficiently allocate their limited resources toward knowledge and technological development are capable not only of increasing productivity but also of creating the necessary environment for the growth of innovative and knowledge-based entrepreneurial activities. Therefore, assessing the efficiency of the knowledge-based economy in comparison to other countries holds not only theoretical importance but also practical and policy relevance for managers, policymakers, and entrepreneurs. Despite the high significance of this topic, a review of the literature indicates that most previous studies have been limited to simple Data Envelopment Analysis (DEA) models and have treated the internal structure of the knowledge-based economy as a black box. In response to this gap, the present study aims to design a systematic, multi-stage model capable of evaluating the efficiency of countries’ knowledge-based economies with greater precision, taking into account their internal complexity and multi-dimensional structure.

Method: In this study, three fundamental stages in the realization of a knowledge-based economy were first identified using the Results-Based Management (RBM) approach. These stages correspond to short-term, medium-term, and long-term results. For each stage, a set of input and output indicators was selected based on a thorough review of literature, analysis of international reports such as KAM, GII, and GKI, and consultation with both domestic and international experts. The indicators were categorized according to a hierarchical structure and thematic overlap to enable the use of advanced models. Subsequently, a multi-layer Data Envelopment Analysis (Multi-layer DEA) model was employed. Given the multi-dimensional nature of the knowledge-based economy and the multiplicity of indicators, this model provides greater discriminative power compared to classical DEA models and ensures that essential expert-selected indicators are maintained while the computational precision of the analysis is preserved. The study’s data pertains to 25 developing countries, including Iran, for the period 2016–2020, with averages calculated over the five years. The designed model allowed for the evaluation of countries’ efficiency both at each stage and in overall terms, enabling a comprehensive comparison among the selected countries.

Results: The results indicate that Iran outperformed the average of the examined countries across all three defined stages. In the first stage, which represents the short-term outcomes of the knowledge-based economy, Iran achieved high efficiency by utilizing its existing institutional, human, and infrastructural capacities more effectively than its peers. In the second stage, which reflects medium-term outcomes, Iran’s efficiency score slightly decreased but remained above the average level of the other countries. In the third stage, encompassing long-term outcomes, Iran’s performance was relatively lower compared to the previous stages; however, it still exceeded the average of the selected countries. When considering overall efficiency, Iran obtained the highest score among the countries analyzed. This superiority is not only attributable to its high performance in individual stages but also reflects a relative balance across all three stages. In contrast, some countries demonstrated strong performance in one or two stages but had lower overall efficiency due to a lack of balance among the stages. Overall, the multi-layer analysis, which considers the hierarchical structure of indicators, not only overcomes the limitations of simple DEA models in handling numerous indicators but also facilitates the identification of strengths and weaknesses of each country at various stages of knowledge-based economic development.

Conclusion: This study, by presenting a conceptual framework based on the Results-Based Management approach and utilizing a multi-layer DEA model, takes a significant step forward in evaluating the efficiency of national knowledge-based economies. Unlike previous studies, which assessed the knowledge-based economy as a black box, this research analyzes its internal components across three separate stages to clarify the contribution of each stage independently. The results demonstrate that Iran not only achieved the highest overall efficiency but also maintained a relative balance across the three stages, a factor that is crucial for achieving sustainable development. This balance indicates that Iran has been able to manage its resources in a way that simultaneously improves short-, medium-, and long-term outputs. Practically, the findings of this study can serve as valuable guidance for policymakers and planners. From an entrepreneurial perspective, the study highlights the critical importance of a knowledge-based economy in creating a stable foundation for the ......................