TY - JOUR
T1 - Are R&D firms more efficient? A two-step switching stochastic frontier approach
AU - Yang, Chih Hai
AU - Chen, Ku Hsieh
AU - Huang, Yi Ju
PY - 2009
Y1 - 2009
N2 - Are R&D firms more efficient than non-R&D firms? This study employs a two-step switching stochastic frontier approach to examine the RD-efficiency nexus. Different from previous studies, this approach corrects the endogenous R&D choice effect in erecting R&D and non-R&D firms' production frontiers and then estimates their technical efficiency and determinants of inefficiency. Using a sample of 7,590 Taiwanese electronics firms, our empirical works show R&D firms, on average, have a higher technical efficiency than non-R&D firms under the conventional setting. While this result reverses as the endogenous R&D choice effect is considered, pointing out the importance of endogenous R&D choice in examining the RD-efficiency link. Moreover, R&D firms are found to have a higher technology frontier than non-R&D firms, indicating the importance of R&D in promoting technological competence. Finally, the positive contribution of R&D activity to production is mainly sourced from accumulated R&D capital rather than current R&D outlay.
AB - Are R&D firms more efficient than non-R&D firms? This study employs a two-step switching stochastic frontier approach to examine the RD-efficiency nexus. Different from previous studies, this approach corrects the endogenous R&D choice effect in erecting R&D and non-R&D firms' production frontiers and then estimates their technical efficiency and determinants of inefficiency. Using a sample of 7,590 Taiwanese electronics firms, our empirical works show R&D firms, on average, have a higher technical efficiency than non-R&D firms under the conventional setting. While this result reverses as the endogenous R&D choice effect is considered, pointing out the importance of endogenous R&D choice in examining the RD-efficiency link. Moreover, R&D firms are found to have a higher technology frontier than non-R&D firms, indicating the importance of R&D in promoting technological competence. Finally, the positive contribution of R&D activity to production is mainly sourced from accumulated R&D capital rather than current R&D outlay.
KW - Efficiency
KW - R&d
KW - Stochastic frontier analysis
KW - Switching regression
UR - http://www.scopus.com/inward/record.url?scp=84866335543&partnerID=8YFLogxK
M3 - 期刊論文
AN - SCOPUS:84866335543
SN - 1727-7051
VL - 7
SP - 62
EP - 74
JO - Problems and Perspectives in Management
JF - Problems and Perspectives in Management
IS - 4
ER -