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R&D efficiency and barriers to entry: a two stage semi-parametric DEA approach

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  • Astrid Cullmann
  • Jens Schmidt-Ehmcke
  • Petra Zloczysti

Abstract

This 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 analyse the impact of the regulatory environment using a single bootstrap procedure. 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. Copyright 2012 Oxford University Press 2011 All rights reserved, Oxford University Press.

Suggested Citation

  • 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.
    • Handle: RePEc:oup:oxecpp:v:64:y:2012:i:1:p:176-196
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    File URL: http://hdl.handle.net/10.1093/oep/gpr015
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    References listed on IDEAS

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    1. 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.
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    1. repec:spr:scient:v:105:y:2015:i:3:d:10.1007_s11192-015-1764-6 is not listed on IDEAS
    2. Cai, Yuezhou & Hanley, Aoife, 2012. "Building BRICS: 2-Stage DEA analysis of R&D efficiency," Kiel Working Papers 1788, Kiel Institute for the World Economy (IfW).
    3. Bengoa, Marta & Román, Valeriano Martínez-San & Pérez, Patricio, 2017. "Do R&D activities matter for productivity? A regional spatial approach assessing the role of human and social capital," Economic Modelling, Elsevier, vol. 60(C), pages 448-461.
    4. Chiara Franco & Fabio Pieri & Francesco Venturini, 2016. "Product market regulation and innovation efficiency," Journal of Productivity Analysis, Springer, vol. 45(3), pages 299-315, June.
    5. Cullmann, Astrid & Zloczysti, Petra, 2013. "Towards an Efficient Use of R&D – Accounting for Heterogeneity in the OECD," CEPR Discussion Papers 9345, C.E.P.R. Discussion Papers.
    6. repec:fan:efeefe:v:html10.3280/efe2016-002006 is not listed on IDEAS
    7. Ron Boschma & Simona Iammarino & Raffaele Paci & Jordy Suriñach & Corinne Autant-Bernard & Sylvie Chalaye & Elisa Gagliardini & Stefano Usai, 2017. "European Knowledge Neighbourhood: Knowledge Production in EU Neighbouring Countries and Intensity of the Relationship with EU Countries," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 108(1), pages 52-75, February.
    8. 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.
    9. 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.

    More about this item

    JEL classification:

    • 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; Threshold Regression Models
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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