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Comparative analysis of the R&D investment performance of Korean local governments

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  • Lee, Hyoungsuk
  • Choi, Yongrok
  • Seo, Hyungjun

Abstract

This study examines Korea's research and development (R&D) investment performance at the local government level using slack-based model data envelopment analysis (SBM-DEA). The SBM methodology, which has replaced the traditional DEA model, is expected to provide more reliable empirical results for R&D investment performance. We confirm the statistical reliability of our results by conducting bootstrapping. The average score of Korea's R&D investment performance is 67.7%, implying that there is a 32.3% potential for efficiency improvement. Among the 16 local governments examined, Seoul, Gwangju, Daegu, and Gangwon show better performance with an average value higher than 0.8. We decomposed R&D investment efficiency into pure R&D investment technical efficiency and scale efficiency and derived implications regarding the input scales. We also reported benchmark information from trend-setting local governments that indicate ideal input mixes for fast-following local governments. Since no local government was found to be in the CRS group, we suggest that all local governments should transform their R&D investment input mix toward upscaling or downsizing.

Suggested Citation

  • Lee, Hyoungsuk & Choi, Yongrok & Seo, Hyungjun, 2020. "Comparative analysis of the R&D investment performance of Korean local governments," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    • Handle: RePEc:eee:tefoso:v:157:y:2020:i:c:s0040162519323923
    DOI: 10.1016/j.techfore.2020.120073
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