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

Listed author(s):
  • Hashimoto, Akihiro
  • Haneda, Shoko

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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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
Contact details of provider: Web page: http://www.elsevier.com/locate/respol

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  1. Akihiro Hashimoto & Migaku Kodama, 1997. "Has Livability of Japan Gotten Better for 1956–1990?: a Dea Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 40(3), pages 359-373, May.
  2. Hashimoto, Akihiro & Ishikawa, Hitoshi, 1993. "Using DEA to evaluate the state of society as measured by multiple social indicators," Socio-Economic Planning Sciences, Elsevier, vol. 27(4), pages 257-268, December.
  3. Cooper, W. W. & Kumbhakar, Subal & Thrall, Robert M. & Yu, Xuelin, 1995. "DEA and stochastic frontier analyses of the 1978 Chinese economic reforms," Socio-Economic Planning Sciences, Elsevier, vol. 29(2), pages 85-112, June.
  4. Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, vol. 39(10), pages 1261-1264, October.
  5. 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.
  6. Shoko Haneda & Hiroyuki Odagiri, 1998. "Appropriation Of Returns From Technological Assets And The Values Of Patents And R&D In Japanese High-Tech Firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(4), pages 303-321.
  7. Geisler, E., 1995. "An integrated cost-performance model of research and development evaluation," Omega, Elsevier, vol. 23(3), pages 281-294, June.
  8. Odagiri, Hiroyuki & Murakami, Naoki, 1992. "Private and quasi-social rates of return on pharmaceutical R&D in Japan," Research Policy, Elsevier, vol. 21(4), pages 335-345, August.
  9. Nasierowski, W. & Arcelus, F. J., 2003. "On the efficiency of national innovation systems," Socio-Economic Planning Sciences, Elsevier, vol. 37(3), pages 215-234, September.
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