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http://dx.doi.org/10.5762/KAIS.2014.15.7.4177

An Empirical Analysis on Technical Efficiency and Productivity Changes of Photonics Industry  

Ahn, Sun-Yeong (Korea Association for Photonics Industry Development)
So, Soon-Hu (Division of Business Administration, Wonkwang University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.15, no.7, 2014 , pp. 4177-4183 More about this Journal
Abstract
This study estimated and decomposed the productivity changes into technological change and efficiency change components for the photonics industry and examined ways of imporving the productive efficiency. Unlike most previous studies, this study employed a non-oriented Malmquist productivity index, which is a non-radial method and deals directly with the input surpluses and output shortfalls. The empirical results show that the productivity of the photonics industry has increased. The main reason for this is the increase in technical efficiency. In addition, there was a statistically significant difference in the productivity changes according to the firm's geographic location and participation in government support programs. These findings suggest that the government's regional strategic industry promotion policy has contributed to improvements in the productive efficiency of photonics industry. The approach presented in this study could be used as a practical reference guide to help enhance the competitiveness of the photonics industry.
Keywords
Technical Efficiency; Malmquist productivity index; Non-radial model; Photonics industry;
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