R&D efficiency has gained great attention in regional innovation. This study examines the R&D efficiency patterns of Korean regions for 2005-2009 from static and dynamic perspectives. This study employs data envelopment analysis to identify the regions' R&D performances relative to the best practices from the static perspective, and the Malmquist Productivity Index to evaluate their dynamic changes within a given timeframe.The results classify Korean regions into the deteriorating, lagging, and improving groups and indicate that most regions suffer from declining R&D productivity over time because of the inability of catching up with the best practices. To improve the catch-up effect, this study suggests (1) implementing exploitative strategies including direct technical imports and complementary R&D, (2) growing the number of government research institutes on a regional scale, and (3) increasing the ratio of industrial R&D organisations relative to industrial R&D expenditures are recommended.

This paper argues for the need to establish a 'dualistic' philosophical approach to systems in system dynamics modelling. The example of a regional innovation system permits an investigation into the influence of philosophical perspectives on the analysis of systems, including decision-making processes and the implementation of policies identifying key influences. Results show that any dynamic regional innovation system, over time, finds it impossible to apply only one approach, with the result that the perception of its systemic problems and the corresponding managerial solutions are likely to change. Therefore, system dynamicists in the innovation policy area should pursue a dialectical policy of 'thesisantithesis-synthesis', reflecting the ever-changing conditions within and around innovation systems.