Title: Technical and efficiency growth rates of biopharmaceutical firms in China

Authors: Yao-Chun Lee, Yu-Hsueh Hsu, Jaw-Ming Chen

Addresses: Department of Marketing & Distribution Management, Ching Yun University, 229 Chien Hsin Rd., Jung-Li, 320, Taiwan. ' Institute of Business and Management, National Chiao-Tung University, 4F, 114 Chung-Hsiao West Road, Sec. 1, Taipei, Taiwan; Communication and Network Systems Business Group, Hon Hai/Foxconn Precision IND. CO., LTD, Taiwan. ' Graduate School of Business and Management, Vanung University, No. 1 Van-Nung Rd., Chung-Li, Tao-Yuan, 32061, Taiwan

Abstract: This paper presents a study of 37 biopharmaceutical firms in China during 2002–2004. Malmquist-DEA and linear regression for panel data were used to analyse the effect of Technical Growth Rate (TGR) and Efficiency Growth Rate (EGR) on Sales Volumes Growth Rate (SGR). Sales volume is the single output. Fixed assets, non-technical staff number and technical staff number are the three inputs. All nominal terms are transformed into real terms in 2002 prices by GDP deflators. Our major findings are as follows: (1) Average Efficiency Growth Rate (AEGR) and Average Real Sales Volumes Growth Rate (ASGR) of small and medium firms have similar trends. (2) AEGR, Average Technical Growth Rate (ATGR) and ASGR are different trends for large firms. (3) The EGR and TGR significantly affect the SGR of biopharmaceutical firms. (4) The ATGR of large firms is greater than that of small and medium firms. (5) The AEGR of small and medium firms is greater than that of large firms.

Keywords: Malmquist-DEA; sales volumes; biopharmaceutical firms; China; technical growth rate; efficiency growth rate.

DOI: 10.1504/IJBT.2007.015810

International Journal of Biotechnology, 2007 Vol.9 No.6, pp.586 - 606

Published online: 20 Nov 2007 *

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