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

Akihiro Hashimoto and Shoko Haneda

Research Policy, 2008, vol. 37, issue 10, pages 1829-1836

Abstract: 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.

Keywords: R&; D; efficiency; change; Data; envelopment; analysis; Malmquist; index; Japanese; pharmaceutical; industry (search for similar items in EconPapers)
Date: 2008

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Persistent link: http://EconPapers.repec.org/RePEc:eee:respol:v:37:y:2008:i:10:p:1829-1836

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