Efficiency and productivity of Taiwan's biotech industry Online publication date: Sun, 21-Aug-2005
by Mei-Fang Chen, Jin-Li Hu, Cherng G. Ding
International Journal of Biotechnology (IJBT), Vol. 7, No. 4, 2005
Abstract: This paper applies DEA (data envelopment analysis) and Mamlquist models to evaluate the efficiency and productivity of Taiwan's biotech industry. Moreover, we use the two-stage approach to find the effects of environmental variables on efficiency and productivity scores. A panel data set is used composed of 31 listed or over-the-counter biotech-related firms during 1998–2001. The DEA results show that the proportion of biotech firms with inefficient returns to scale rose during this period. The results from the Tobit regression further indicate that food-related firms have higher scale efficiencies than others. Mamlquist indices reveal that food- and chemical-related firms have lower technical efficiencies than others, and their total factor productivities (TFP) grew from 1998 to 2000 but fell in 2001. Obviously, technical changes constitute the main source of biotech TFP changes in Taiwan. In addition to maintaining competitive advantage in technology improvements, the managers in Taiwan's biotech industry have to put more efforts into efficiency improvement.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Biotechnology (IJBT):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com