Abstract
This study assessed the efficiency and productivity of R&D service firms using Data Envelopment Analysis (DEA) and Sequential Malmquist Productivity Index (SMPI), while analyzing the factors that affect the productivity change of R&D service firms using the panel regression model. This study selected labor, capital, tangible assets and total assets as input variables, whereas, sales and operating profit where used as output variables for DEA and SMPI. Also, in this research, intangible assets, industrial property rights, capital adequacy ratio, in-addition to selling and administrative expenses were considered as factors influencing the productivity change of R&D service firms, based on existing empirical studies. In the empirical analysis, data on 66 R&D service firms from the last three years (2015 to 2017) were used. Results showed that CCR efficiency was 0.529, 0.474, and, 0.481, in 2015, 2016 and 2017, respectively, while BCC efficiency, in R&D service firms, was 0.599, 0.551 and 0.548 in 2015, 2016 and 2017, respectively. Even though, productivity, technology and scale efficiency increased by 6.0%, 15.4% and 2.1%, respectively, technical efficiency and pure technical efficiency decreased by 8.1%, and 10.1%, respectively in the same period. Panel regression analysis showed that intangible assets and industrial property rights had a positive effect on productivity change, while capital adequacy ratio, and selling and administrative expenses had a negative effect on productivity change. Finally, industrial property rights had a positive impact on efficiency change, whereas, capital adequacy ratio had a negative impact on efficiency change. Also, intangible assets, and selling and administrative expenses had no significant effect on efficiency change in R&D service firms. The results of this study will contribute to improve the efficiency and productivity of R&D service firms in practice. In addition, this study provides policy implications for the government to grow R&D service firms.
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