Analyzing the efficiency of small and medium-sized enterprises of a national technology innovation research and development program.

Abstract

This study analyzes the efficiency of small and medium-sized enterprises (SMEs) of a national technology innovation research and development (R&D) program. In particular, an empirical analysis is presented that aims to answer the following question: “Is there a difference in the efficiency between R&D collaboration types and between government R&D subsidy sizes?” Methodologically, the efficiency of a government-sponsored R&D project (i.e., GSP) is measured by Data Envelopment Analysis (DEA), and a nonparametric analysis of variance method, the Kruskal-Wallis (KW) test is adopted to see if the efficiency differences between R&D collaboration types and between government R&D subsidy sizes are statistically significant. This study’s major findings are as follows. First, contrary to our hypothesis, when we controlled the influence of government R&D subsidy size, there was no statistically significant difference in the efficiency between R&D collaboration types. However, the R&D collaboration type, “SME-University-Laboratory” Joint-Venture was superior to the others, achieving the largest median and the smallest interquartile range of DEA efficiency scores. Second, the differences in the efficiency were statistically significant between government R&D subsidy sizes, and the phenomenon of diseconomies of scale was identified on the whole. As the government R&D subsidy size increases, the central measures of DEA efficiency scores were reduced, but the dispersion measures rather tended to get larger.