Browse > Article

A Study on Analyzing Innovation Efficiency in Service Sector of Korea  

Choi, Joung-In (Department of Management of Technology, Sungkyunkwan University)
Gwon, Seong-Hoon (Department of Management of Technology, Sungkyunkwan University)
Song, Sung-Hwan (R&D Policy Team, Korea Institute of Oriental Medicine)
Hwang, Seog-Won (Economic Analysis Research Division, Science and Technology Policy Institute)
Publication Information
IE interfaces / v.22, no.4, 2009 , pp. 336-346 More about this Journal
Abstract
One of primary assumptions on DEA is that all DMUs for evaluation should be homogeneous. In comparative analysis among DMUs with relative efficiency measurement, it should be evaluated under identical conditions by ruling out external environmental influences. In this study, a measurement of innovation efficiency using the three-stage approach is performed. The approach employs DEA to measure relative efficiency and Tobit regressions to control external variables affecting innovation activity. The approach applied to firms in Korean Innovation Survey: Service Sector 2003 and 2006. Final efficiency scores of the approach represent net efficiency of the innovation. This study found that there is a increasing on technical efficiency of third stage, and it has difference with first stage significantly. Besides, a decrease on standard deviation of third stage is found. It means DMUs biased lower due to unfavorable condition and ones biased higher due to favorable condition are fallen into an identical operating environment through the approach. A measurement of net efficiency, excluding external effects, ensures the homogeneity of DMUs so that improves the reliability in terms of its analysis results. This study is expected to provide a direction and to be a valuable reference to further evaluation of innovation performance in Korean service sector.
Keywords
services sector; innovation; efficiency; DEA;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
연도 인용수 순위
1 Banker, R. D., Charnes, A., and Cooper, W. W. (1984), Models for Estimating Technical and Scale Efficiencies, Management Science, 30(9), 1078-1092   DOI   ScienceOn
2 Charnes, A., Cooper, W. W., and Rhodes, E. (1978), Measuring Efficiency of Decision Making Units, European Journal of Operational Research, 1(6), 429-444   DOI   ScienceOn
3 Chen, Y., Yang, Z., Shu, F., Hu, Z., Meyer, M., and Bhattacharya, S. (2009). A Patent Based Evaluation of Technological Innovation Capability in Eight Economic Regions in PR China, World Patent Information, 31(2), 104-110   DOI   ScienceOn
4 Drake, L., Gall, M. J. B., and Simper, R. (2006), The Impact of Macroeconomic and Regulatory Factors on Bank Efficiency: A Non-parametric Analysis of Hong Kong’s Banking System, Journal of Banking and Finance, 30(5), 1443-1466   DOI   ScienceOn
5 Farrell, M. J. (1957), The Measurement of Productive Efficiency, Journal of the Royal Statistical Society, Series A (General), 120(3), 253-290   DOI   ScienceOn
6 Fried, H. O., Schmidt, S. S., and Yaisawarng, S. (1999), Incorporating the Operating Environment into a Nonparametric Measure of Technical Efficiency, Journal of Productivity Analysis, 12(3), 249-267   DOI   ScienceOn
7 Fu, X. (2008), Foreign Direct Investment, Absorptive Capacity and Regional Innovation Capabilities: Evidence from China, Oxford Development Studies, 36(1), 89-110   DOI   ScienceOn
8 Kim, J. B., Kim, W. J., and Cho, N. W. (2008), An Efficiency Evaluation among Manufacturing Processes using Hybrid DEA/AHP Model, IE Interfaces, 21(3), 302-311
9 Nelson, A. J. (2009), Measuring Knowledge Spillovers: What Patents, Licenses and Publications Reveal about Innovation Diffusion, Research Policy, 38(6), 994-1005   DOI   ScienceOn
10 Raggi, A. (1993), Technological Growth in the Italian Economy: Some Indicators Compared, Technovation, 13(1), 3-15   DOI   ScienceOn
11 Uzun, A. (2001), Technological Innovation Activities in Turkey: The Case of Manufacturing Industry, 1995～1997, Technovation, 21(3), 189-196   DOI   ScienceOn
12 Park, S. and Choi, T. (2009), A Study on the analyzing impact factors on production of Korea S&T knowledge, 2009 Proceedings of Korea Technology Innovation Society, 165-177
13 Hoffman, K., Parejo, M., Bessant, J., and Perren, L. (1998), Small Firms, R&D, Technology and Innovation in the UK: A Literature Review, Technovation, 18(1), 39-55   DOI   ScienceOn
14 Santarelli, E. and Piergiovanni, R. (1996), Analyzing Literature-based Innovation Output Indicators: The Italian Experience, Research Policy, 25(5), 689-711   DOI   ScienceOn
15 Sher, P. J. and Yang, P. Y. (2005), The Effects of Innovative Capabilities and R&D Clustering on Firm Performance: The Evidence of Taiwan’s Semiconductor Industry, Technovation, 25(1), 33-43   DOI   ScienceOn
16 Luukkonen, T. (2000), Additionality of EU Framework Programmes, Research Policy, 29(6), 711-724   DOI   ScienceOn
17 Teece, D. (1986), Profiting from Technological Innovation: Implications for Integration, Collaboration, Licensing and Public Policy, Research Policy, 15(6), 285-305   DOI   ScienceOn
18 Science and Technology Policy Institute (2004), Korean Innovation Survey 2003 : Service Sector, Seoul, Korea: STEPI
19 Huergo, E. (2006), The Role of Technological Management as a Source of Innovation: Evidence from Spanish Manufacturing Firms, Research Policy, 35(9), 1377-1388   DOI   ScienceOn
20 Ernst, H. (1995), Patenting Strategies in the German Mechanical Engineering Industry and Their Relationship to Firm Performance, Technovation, 15(4), 225-240   DOI   ScienceOn
21 Wang, E. C. and Huang, W. (2007), Relative Efficiency of R&D Activities: A Cross-Country Study Accounting for Environmental Factors in the DEA Approach, Research Policy, 36(2), 260-273   DOI   ScienceOn
22 Afriat, S. (1972), Efficiency Estimation of Production Functions, International Economic Review, 13(3), 563-598
23 Byrnes, P., Färe, R., and Grosskop, S. (1984), Measuring Productive Efficiency: An Application to Illinois Strip Mines, Management Science, 30(6). 671-681   DOI   ScienceOn
24 Chudnovsky, D., Lopez, A., and Pupato, G. (2006), Innovation and Productivity in Developing Countries: A Study of Argentine Manufacturing Firms’ Behavior (1992～2001), Research Policy, 35(2), 266-288   DOI   ScienceOn
25 Comanor, W. S. and Scherer, F. M. (1969), Patent Statistics as a Measure of Technical Change, The Journal of Political Economy, 77(3), 329-398   DOI   ScienceOn
26 Chapelle, K. and Plane, P. (2005), Productive Efficiency in the Ivorian Manufacturing Sector: An Exploratory Study Using a Data Envelopment Analysis Approach, The Developing Economies, 43(4), 450-471   DOI   ScienceOn
27 Science and Technology Policy Institute (2006), Report on the Korean Innovation Survey 2006: The Services Sector, Seoul, Korea: STEPI
28 Sohn, S-Y. and Joo, Y-G. (2004), Data Envelopment Analysis and Logistic Model for BRAIN KOREA 21, IE Interfaces, 17(3), 249-260
29 Hsu, F. M. and Hsueh, C. C. (2009), Measuring Relative Efficiency of Government-sponsored R&D Projects: A Three-stage Approach, Evaluation and Program Planning, 32(2), 178-186   DOI   ScienceOn
30 Greenhalgh, C. and Rogers, M. (2006), The Value of Innovation: The Interaction of Competition, R&D and IP, Research Policy, 35(4), 562-580   DOI   ScienceOn