Using DEA to Evaluate R&D Performance of the Computers and Peripherals Firms in Taiwan

Abstract

Research & development (R&D) performance has been a competitive advantage for high-tech industries. This paper presents an empirical study in which we used Data Envelopment Analysis (DEA) to evaluate the R&D performance of 31 computers and peripherals firms located at Hsinchu Science-based Industrial Park in Taiwan. We found that the R&D performance is very different among the evaluated companies, though most of the companies are technically efficient. Moreover, we discussed possible directions for the inefficient companies to improve their R&D performance. In particular, we found that most of the inefficient companies should increase their scales to increase their relative efficiencies of R&D performance.

Keywords: R&D performance, High-tech industry, Efficiency, Data envelopment Analysis, Hsinchu Science-based Industry Park

JEL Classification: C44, C67, M11