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The Efficiency Analysis of National R&D Programs for Drug Development Using Range Adjusted Measure  

Um, Ik-Cheon (한국과학기술기획평가원)
Baek, Chulwoo (덕성여자대학교 국제통상학과)
Hong, Seho (한국과학기술기획평가원)
Publication Information
Journal of Korea Technology Innovation Society / v.19, no.4, 2016 , pp. 711-735 More about this Journal
Abstract
Drug Development is very important for promoting public health and pharmaceutical industry. There has been many studies on the efficiency of drug development, but there are few studies on the drug development R&D performed by government. Since CCR model assumes unidirectional influence of input and output, it is not appropriate to analyze the efficiency of R&D due to the time-lag and spill-over effect. Also, BBC model which assumes variable returns to scale has difficulty in deriving priorities between decision making units. Recently, Range Adjusted Measure (RAM) model has been suggested in R&D efficiency analysis. RAM model measures the efficincy by eliminating inefficiencies under variable returns to scale assumption, and its strong monotonicity enables to provide clear priorities between decision making units. In this study, we analyzed the efficiency of national R&D programs for drug development using the two-step approach, including RAM model and Tobit regression analysis, and discussed major policy implications.
Keywords
Drug Development; Range Adjusted Measure (RAM); Efficiency;
Citations & Related Records
Times Cited By KSCI : 3  (Citation Analysis)
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