Impact of firm size and industry type on R&D efficiency throughout innovation and commercialisation stages: evidence from Korean manufacturing firms

Abstract

Technological innovation through R&D is a critical element in enhancing and fostering firm performance. In particular, measurement of R&D efficiency throughout the innovation and commercialisation stages is important. However, almost of R&D efficiency-related studies assumed that R&D is a single stage. This study aims at analysing relative efficiency scores throughout the stages of the R&D process using a two-stage data envelopment analysis (DEA) model with a sample of 1039 Korean manufacturing firms. Based on our preliminary results, this study was extended by comparing subsample groups categorised by firm size and industry type. The key findings include: (1) firms show imbalanced R&D efficiency throughout the two stages and (2) R&D efficiency is different by firm size and industry type. The empirical results and findings may assist policy- and decision-makers to enhance R&D efficiency at the firm level. Moreover, introduction of the two-stage DEA model and comparative analysis methods to firm-level data contributes to scholars.

Keywords:

• R&D efficiency
• innovation stage
• commercialisation stage
• two-stage DEA model
• Korea innovation survey

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes on contributors

Dongphil Chun received his Ph.D. in Department of Business and Technology Management from Korea Advanced Institute of Science and Technology, South Korea. He is a senior researcher in the division of Policy and Cooperation, Korea Research Institute of Chemical Technology. His current research interests are in the area of performance management of government and firm R&D. He has published valuable articles in International Journal of Hydrogen Energy, Management Decision, Sustainability, and other journals. E-mail: [email protected]

Yanghon Chung received his Ph.D. in Accounting from Georgia State University, USA. He is currently an Assistant Professor in the Department of Business and Technology Management at Korea Advanced Institute of Science and Technology, South Korea. He was the editor-in-chief in Korean Journal of Accounting Research, Korean Academic Society of Accounting, and he is the president of Korea Association of Business Education. For several years, he has been interested in performance management, sustainability management, and managerial accounting issues. He has many articles published in international journals such as Energy Policy, Business Strategy and the Environment, Management Decision, Asia-Pacific Journal of Accounting and other journals. E-mail: [email protected]

Sungsig Bang received his Ph.D. in Department of Business and Technology Management from Korea Advanced Institute of Science and Technology, South Korea. He is currently teaching management accounting and financial accounting at many universities. His research interests are performance management and cost-efficiency analysis. He has published insightful articles about cost estimation and analysis in many international journals. E-mail: [email protected]