Measuring the change in R&D efficiency of the Japanese pharmaceutical industry
AbstractThis 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 InfoArticle provided by Elsevier in its journal Research Policy.
Volume (Year): 37 (2008)
Issue (Month): 10 (December)
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Web page: http://www.elsevier.com/locate/respol
R&D efficiency change Data envelopment analysis Malmquist index Japanese pharmaceutical industry;
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