R&D Efficiency and Barriers to Entry: A Two Stage Semi-Parametric DEA Approach
AbstractThis paper assesses the relative efficiency of knowledge production in the OECD using a nonparametric DEA approach. In general, resources allocated to R&D are limited and therefore must be used efficiently, given the institutional and legal constraints. The efficiency scores presented are based on an intertemporal frontier estimation for the period 1995 to 2004. We analyze the impact of the regulatory environment using the single bootstrap procedure suggested by Simar and Wilson (2007a). The empirical evidence supports our hypothesis that barriers to entry aimed at reducing competition actually lower R&D efficiency by attenuating the incentives to innovate and to allocate resources efficiently.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8047.
Date of creation: Oct 2010
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Other versions of this item:
- Astrid Cullmann & Jens Schmidt-Ehmcke & Petra Zloczysti, 2012. "R&D efficiency and barriers to entry: a two stage semi-parametric DEA approach," Oxford Economic Papers, Oxford University Press, vol. 64(1), pages 176-196, January.
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models
- L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
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- John R. Baldwin & Paul K. Gorecki, 1990. "Firm Entry and Exit in the Canadian Manufacturing Sector," Working Papers 767, Queen's University, Department of Economics.
- Massimo Filippini & Lin Zhang, 2013. "Measurement of the “Underlying energy efficiency” in Chinese provinces," CER-ETH Economics working paper series 13/183, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- Yuezhou Cai, Aoife Hanley, 2012. "Building BRICS: 2-Stage DEA analysis of R&D Efficiency," Kiel Working Papers 1788, Kiel Institute for the World Economy.
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