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

Author

Listed:
  • Hashimoto, Akihiro
  • Haneda, Shoko
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.

Suggested Citation

  • Hashimoto, Akihiro & Haneda, Shoko, 2008. "Measuring the change in R&D efficiency of the Japanese pharmaceutical industry," Research Policy, Elsevier, vol. 37(10), pages 1829-1836, December.
  • Handle: RePEc:eee:respol:v:37:y:2008:i:10:p:1829-1836
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
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    5. 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.
    6. 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.
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