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Asian Journal of Technology Innovation Volume 17, 2009 - Issue 2
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Original Articles

Innovation policy for defense acquisition and dynamics of productive efficiency: A DEA application to the Korean defense industry

Choonjoo Lee Weapons System Department, Korea National Defense University, 205 Susaekdong, Enpyung‐Gu, Seoul, Republic of Korea E-mail: [email protected]
,
Jeong‐dong Lee Graduate School of Technology Management, Economics, and Policy, Seoul National University, 56–1 Silim‐Dong, Kwanak‐Gu, Seoul, Republic of Korea
&
Tai‐yoo Kim Graduate School of Technology Management, Economics, and Policy, Seoul National University, 56–1 Silim‐Dong, Kwanak‐Gu, Seoul, Republic of Korea
Pages 151-171 | Published online: 24 Feb 2011
 
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Summary

This study evaluates the effects of innovation policy for defense acquisition on productive efficiency of Korean defense firms. After identifying the efficiency gaps among the production units by applying Data Envelopment Analysis (DEA) to the production data of 1997–2004, the determinants affecting the input mix decisions of defense firms are analyzed through the Tobit regression analysis. The results identify competition in the market, capacity utilization level, R&D investment, and the firm's defense revenue share as the influential factors to the productive efficiency of Korean defense firms.

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