X-Efficiency of Innovation Processes: Concept and Evaluation based on Data Envelopment Analysis
AbstractThis paper investigates X-(in)efficiency of innovation processes in Small and Medium-sized Enterprises (SMEs). We have adopted the following approach: (a) we provide both a concept of X-(in)efficiency and a model of innovation processes for each SME; (b) from this model we evaluate both the dimensions of the innovation processes and the X-(in)efficiency of these processes using a variant of the Data Envelopment Analysis (DEA) model; (c) finally, we characterize X-inefficiency by using techniques of exploratory analysis derived from an empirical analysis. Our approach has been applied to regional SMEs in Normandy (France) with a representative random sample of 80 innovative businesses. The results show the existence of X- inefficiency in the innovation processes of SMEs in 71% of cases. This X-inefficiency arises primarily from the difficulties that entrepreneurs face in implementing the interacting rules and standards of exploitation and exploration activities.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 41887.
Date of creation: Oct 2012
Date of revision:
Data Envelopment Analysis; Multiple Projections; X-Efficiency; Innovation Process;
Find related papers by JEL classification:
- D0 - Microeconomics - - General
- C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
- Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-20 (All new papers)
- NEP-CSE-2012-10-20 (Economics of Strategic Management)
- NEP-EFF-2012-10-20 (Efficiency & Productivity)
- NEP-ENT-2012-10-20 (Entrepreneurship)
- NEP-INO-2012-10-20 (Innovation)
- NEP-KNM-2012-10-20 (Knowledge Management & Knowledge Economy)
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