ANALYZING THE TECHNICAL EFFICIENCY OF RESEARCH LABORATORIES USING DATA ENVELOPMENT ANALYSIS (DEA)

Abstract

A critical measurement of industrial performance is a significant and deliberate call to check the sustainable growth of economies. Researchers have informed several insubstantial aspects – Growth Drivers, where research and development (R&D) is one of them responsible for economic growth. As per Global Innovation Index–2023, India ranks 40th among 132 economies in education, software exports, research, etc. A large budget is invested in laboratory studies every year; however, the output is comparatively lower than expected, and consumers become more dependent on foreign products. This issue led to the genesis of evaluating research productivity. Earlier, Publications and Intellectual Property were considered relevant for measuring research productivity, but there was a need for holistic measurement of innovation potential. In this study, the Technical Efficiency (TE) of Decision-Making Units (DMUs) (laboratories) was measured using Data Envelopment Analysis (DEA) with several other parameters – Scientific Performance Indicators (SPIs). This study was concluded by delineating the performing and less performing research laboratories in a certain period. This study is intended to create an insight that calls for introspection by policymakers to re-evaluate organizational productivity according to their mandates. Such studies are expected to assess the strengths and weaknesses and furthermore plan to contribute effectively to the productivity of the organization and the national economy.