IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v39y2011i4p447-455.html
   My bibliography  Save this article

The performance evaluation of regional R&D investments in China: An application of DEA based on the first official China economic census data

Author

Listed:
  • Zhong, Wei
  • Yuan, Wei
  • Li, Susan X.
  • Huang, Zhimin

Abstract

R&D (Research and Development) activities represent the basic core of corporate science and technology activities, and play a crucial role in enhancing the ability of companies to achieve rapid and sustainable growth. In recent years, the total R&D investments in China have increased significantly and the proportion of the industrial investments in R&D activities relative to national R&D investments has increased rapidly. In order to investigate the effectiveness of these R&D investments, we utilize Data Envelopment Analysis (DEA) models to evaluate the relative efficiencies of 30 regional R&D investments using the First Official China Economic Census Data in 2004. Our investigation and study indicate the following: (1) Only six provinces are global technical efficient and the performance of regional R&D investments in China needs to improve dramatically. (2) Increasing returns to scale have not yet occurred in any province. Constant returns to scale have prevailed in most provinces in the Western region, and decreasing returns to scale have prevailed in most provinces in the Eastern and Central regions. (3) There are no direct relationships between global technical efficiency and the amount of R&D investment. The Western region has the highest average radial efficiency score, followed by the Eastern region, and then by the Central region. (4) The Eastern region has advantages in local technical efficiency, the Western region has advantages in scale efficiency, while the Central region has neither technical efficiency advantages nor scale efficiency advantages. Suggestions are proposed to improve efficiencies of regional R&D investments.

Suggested Citation

  • Zhong, Wei & Yuan, Wei & Li, Susan X. & Huang, Zhimin, 2011. "The performance evaluation of regional R&D investments in China: An application of DEA based on the first official China economic census data," Omega, Elsevier, vol. 39(4), pages 447-455, August.
  • Handle: RePEc:eee:jomega:v:39:y:2011:i:4:p:447-455
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-0483(10)00120-9
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Liu, John S. & Lu, Wen-Min, 2010. "DEA and ranking with the network-based approach: a case of R&D performance," Omega, Elsevier, vol. 38(6), pages 453-464, December.
    2. Zhimin Huang & Waiman Cheung & Huiwen Wang, 2006. "Cone dominance and efficiency in DEA," Annals of Operations Research, Springer, vol. 145(1), pages 89-103, July.
    3. A. Charnes & W. W. Cooper & E. Rhodes, 1981. "Evaluating Program and Managerial Efficiency: An Application of Data Envelopment Analysis to Program Follow Through," Management Science, INFORMS, vol. 27(6), pages 668-697, June.
    4. Tseng, Fang-Mei & Chiu, Yu-Jing & Chen, Ja-Shen, 2009. "Measuring business performance in the high-tech manufacturing industry: A case study of Taiwan's large-sized TFT-LCD panel companies," Omega, Elsevier, vol. 37(3), pages 686-697, June.
    5. Charnes, A. & Cooper, W. W. & Huang, Z. M. & Sun, D. B., 1990. "Polyhedral Cone-Ratio DEA Models with an illustrative application to large commercial banks," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 73-91.
    6. Seiford, Lawrence M. & Thrall, Robert M., 1990. "Recent developments in DEA : The mathematical programming approach to frontier analysis," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 7-38.
    7. Charnes, A. & Cooper, W. W. & Golany, B. & Seiford, L. & Stutz, J., 1985. "Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 91-107.
    8. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    9. Avkiran, Necmi K. & Morita, Hiroshi, 2010. "Benchmarking firm performance from a multiple-stakeholder perspective with an application to Chinese banking," Omega, Elsevier, vol. 38(6), pages 501-508, December.
    10. Shimshak, Daniel G. & Lenard, Melanie L. & Klimberg, Ronald K., 2009. "Incorporating quality into data envelopment analysis of nursing home performance: A case study," Omega, Elsevier, vol. 37(3), pages 672-685, June.
    11. Lawrence Seiford & Joe Zhu, 1999. "Sensitivity and Stability of the Classifications of Returns to Scale in Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 12(1), pages 55-75, August.
    12. Ulucan, AydIn & BarIs AtIcI, KazIm, 2010. "Efficiency evaluations with context-dependent and measure-specific data envelopment approaches: An application in a World Bank supported project," Omega, Elsevier, vol. 38(1-2), pages 68-83, February.
    13. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    14. Pasiouras, Fotios & Zopounidis, Constantin, 2010. "Empirical research in the EU banking sector and the financial crisis," Omega, Elsevier, vol. 38(5), pages 239-240, October.
    15. Seiford, Lawrence M. & Zhu, Joe, 1999. "An investigation of returns to scale in data envelopment analysis," Omega, Elsevier, vol. 27(1), pages 1-11, February.
    16. Cook, Wade D. & Liang, Liang & Zhu, Joe, 2010. "Measuring performance of two-stage network structures by DEA: A review and future perspective," Omega, Elsevier, vol. 38(6), pages 423-430, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Takauchi, Kazuhiro, 2015. "Endogenous transport price and international R&D rivalry," Economic Modelling, Elsevier, vol. 46(C), pages 36-43.
    2. Chen, Yao & Du, Juan & Huo, Jiazhen, 2013. "Super-efficiency based on a modified directional distance function," Omega, Elsevier, vol. 41(3), pages 621-625.
    3. Liu, Jin-Hu & Wang, Jun & Shao, Junming & Zhou, Tao, 2016. "Online social activity reflects economic status," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 457(C), pages 581-589.
    4. repec:eee:soceps:v:61:y:2018:i:c:p:16-28 is not listed on IDEAS
    5. Yag├╝e-Perales, R.M. & March-Chorda, I., 2013. "Performance analysis of NTBFs in knowledge-intensive industries: Evidence from the human health sector," Journal of Business Research, Elsevier, vol. 66(10), pages 1983-1989.
    6. repec:gam:jsusta:v:9:y:2017:i:4:p:620-:d:95947 is not listed on IDEAS
    7. Shihong Zeng & Mimi Hu & Bin Su, 2016. "Research on Investment Efficiency and Policy Recommendations for the Culture Industry of China Based on a Three-Stage DEA," Sustainability, MDPI, Open Access Journal, vol. 8(4), pages 1-15, March.
    8. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min, 2016. "Research fronts in data envelopment analysis," Omega, Elsevier, vol. 58(C), pages 33-45.
    9. repec:gam:jsusta:v:9:y:2017:i:4:p:644-:d:96241 is not listed on IDEAS
    10. Yang, Guoliang & Ahlgren, Per & Yang, Liying & Rousseau, Ronald & Ding, Jielan, 2016. "Using multi-level frontiers in DEA models to grade countries/territories," Journal of Informetrics, Elsevier, vol. 10(1), pages 238-253.
    11. Hong, Jin & Feng, Bing & Wu, Yanrui & Wang, Liangbing, 2016. "Do government grants promote innovation efficiency in China's high-tech industries?," Technovation, Elsevier, vol. 57, pages 4-13.
    12. repec:eee:eneeco:v:70:y:2018:i:c:p:536-544 is not listed on IDEAS
    13. Li, Yongjun & Chen, Yao & Liang, Liang & Xie, Jianhui, 2012. "DEA models for extended two-stage network structures," Omega, Elsevier, vol. 40(5), pages 611-618.
    14. Wang, Chun-Hsien & Lu, Yung-Hsiang & Huang, Chin-Wei & Lee, Jun-Yen, 2013. "R&D, productivity, and market value: An empirical study from high-technology firms," Omega, Elsevier, vol. 41(1), pages 143-155.
    15. Wang, Qunwei & Hang, Ye & Sun, Licheng & Zhao, Zengyao, 2016. "Two-stage innovation efficiency of new energy enterprises in China: A non-radial DEA approach," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 254-261.
    16. Aristovnik, Aleksander, 2014. "Efficiency of the R&D Sector in the EU-27 at the Regional Level: An Application of DEA," MPRA Paper 59081, University Library of Munich, Germany.
    17. Lai, Kee-hung & Wong, Christina W.Y., 2012. "Green logistics management and performance: Some empirical evidence from Chinese manufacturing exporters," Omega, Elsevier, vol. 40(3), pages 267-282.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:39:y:2011:i:4:p:447-455. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.