Conditional nonparametric frontier models for convex and nonconvex technologies: a unifying approach

The explanation of productivity differentials is very important to identify the economic conditions that create inefficiency and to improve managerial performance. In the literature two main approaches have been developed: one-stage approaches and two-stage approaches. Daraio and Simar (2005, J Prod Anal 24(1):93–121) propose a fully nonparametric methodology based on conditional FDH and conditional order-m frontiers without any convexity assumption on the technology. However, convexity has always been assumed in mainstream production theory and general equilibrium. In addition, in many empirical applications, the convexity assumption can be reasonable and sometimes natural. Lead by these considerations, in this paper we propose a unifying approach to introduce external-environmental variables in nonparametric frontier models for convex and nonconvex technologies. Extending earlier contributions by Daraio and Simar (2005, J Prod Anal 24(1):93–121) as well as Cazals et al. (2002, J Econometrics 106:1–25), we introduce a conditional DEA estimator, i.e., an estimator of production frontier of DEA type conditioned to some external-environmental variables which are neither inputs nor outputs under the control of the producer. A robust version of this conditional estimator is proposed too. These various measures of efficiency provide also indicators of convexity which we illustrate using simulated and real data. Cinzia Daraio received Research support from the Italian Ministry of Education Research on Innovation Systems Project (iRis) “The reorganization of the public system of research for the technological transfer: governance, tools and interventions” and from the Italian Ministry of Educational Research Project (MIUR 40% 2004) “System spillovers on the competitiveness of Italian economy: quantitative analysis for sectoral policies” which are acknowledged. Léopold Simar received Research support from the “Interuniversity Attraction Pole”, Phase V (No. P5/24) from the Belgian Government (Belgian Science Policy) is acknowledged.     

PRODUCTIVITY AND EFFICIENCY ANALYSIS SOFTWARE: AN EXPLORATORY BIBLIOGRAPHICAL SURVEY OF THE OPTIONS

The software available to implement and carry out efficiency analysis is crucial for the diffusion of efficiency frontier techniques among applied researchers and policy makers. The implementation of up‐to‐date productivity and efficiency analysis is indeed important to advance our knowledge in many fields, ranging from the public and regulated sectors to the private ones. This contribution fills a gap in the existing literature and surveys the currently available options to estimate a variety of frontier methodologies using either general or dedicated programs. We outline directions for future research.     

The productivity of French technology transfer offices after government reforms

This article assesses the productivity change of the French technology transfer offices (TTOs) after the introduction of the July 1999 innovation law and the new public management oriented reform. By using Data Envelopment Analysis (DEA)-based Malmquist productivity index, we find an average increase in the short-term productivity of the French TTOs driven by both positive efficiency and technology change. The bootstrap analysis reveals that these improvements are ascribed to 50% of the TTO systems, while the remaining part does not show significant changes. Moreover, while older TTOs positively contribute to the performance of French TTOs in the short run, young TTOs with hospital seem to contribute negatively to the efficiency of the entire system.     

Empirical tools to assess the sensitivity of directional distance functions to direction selection

Directional Distance Functions (DDFs) are becoming a popular way of measuring efficiency as they encompass the Shephard output and input distance functions as special cases. However, the most critical and still unsolved issue related to DDF remains the selection of the direction along which to measure the distance from the efficient frontier. In this article, we propose some empirical tools which allow to quantify the sensitivity of the efficiency measurement to the selection of the direction. The proposed tools are applied on a dataset on the Italian agricultural sector.     

How does Internationalisation affect the productivity of R&D activities in large innovative firms? A conditional nonparametric investigation

Quality & Quantity - This work explores the relationship between multinational R&D and innovation productivity among top corporate knowledge and R&D producers by adopting a...