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Measuring the change in R&D efficiency of the Japanese pharmaceutical industry

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  • Hashimoto, Akihiro
  • Haneda, Shoko

Abstract

This paper presents a data envelopment analysis (DEA)/Malmquist index methodology for measuring the change in R&D efficiency at both firm and industry levels. Letting each of ten firms in each year be a separate decision-making unit, and employing one input and three outputs in a DEA case of R&D activity input-output lag, we measure "total factor R&D efficiency" change of Japanese pharmaceutical firms for decade 1983-1992 as defined by the period of R&D input. Decomposing Malmquist index into catch-up and frontier shift components and using "cumulative indices" proposed in this study, we evaluate R&D efficiency change for each firm and empirically show that R&D efficiency of Japanese pharmaceutical industry has almost monotonically gotten worse throughout the study decade.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 37 (2008)
Issue (Month): 10 (December)
Pages: 1829-1836

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Handle: RePEc:eee:respol:v:37:y:2008:i:10:p:1829-1836

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Web page: http://www.elsevier.com/locate/respol

Related research

Keywords: R&D efficiency change Data envelopment analysis Malmquist index Japanese pharmaceutical industry;

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Cited by:
  1. Tsuneyoshi, Takao & Hashimoto, Akihiro & Haneda, Shoko, 2012. "Quantitative evaluation of nation stability," Journal of Policy Modeling, Elsevier, vol. 34(1), pages 132-154.
  2. Halkos, George & Tzeremes, Nickolaos, 2011. "The effect of national culture on countries’ innovation efficiency," MPRA Paper 30100, University Library of Munich, Germany.
  3. Cruz-Cázares, Claudio & Bayona-Sáez, Cristina & García-Marco, Teresa, 2013. "You can’t manage right what you can’t measure well: Technological innovation efficiency," Research Policy, Elsevier, vol. 42(6), pages 1239-1250.
  4. Yen-Hsien Lee & Ya-Ling Huang & Shiuh-Sheng Hsu & Chien-Han Hung, 2013. "Measuring the Efficiency and the Effect of Corporate Governance on the Biotechnology and Medical Equipment Industries in Taiwan," International Journal of Economics and Financial Issues, Econjournals, vol. 3(3), pages 662-672.
  5. Qazi, Ahmar Qasim & Zhao, Yulin, 2013. "Indigenous R&D Effectiveness and Technology Transfer on Productivity Growth: Evidence from the Hi-Tech Industry of China," MPRA Paper 46589, University Library of Munich, Germany.
  6. Guan, Jiancheng & Chen, Kaihua, 2012. "Modeling the relative efficiency of national innovation systems," Research Policy, Elsevier, vol. 41(1), pages 102-115.

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