Key Takeaways & Executive Findings
- •• The average innovation efficiency of pharmaceutical enterprises is 0.72, indicating room for improvement. • Large enterprises exhibit higher innovation efficiency compared to small and medium-sized enterprises. • R&D intensity and market competition significantly impact innovation efficiency. • Policy support and industry-university-research collaboration enhance innovation output.
Abstract
This study investigates the innovation efficiency of pharmaceutical enterprises using Data Envelopment Analysis (DEA). A comprehensive evaluation framework is constructed incorporating input and output indicators such as R&D expenditure, patent counts, and new product revenue. The results reveal that the overall innovation efficiency of pharmaceutical enterprises is moderate, with significant variation across different enterprise sizes and ownership types. The study identifies key factors influencing efficiency, including R&D intensity, market structure, and policy support. The findings provide valuable insights for policymakers and enterprise managers to enhance innovation performance and competitiveness.
1. Introduction
Innovation is a critical driver for the sustainable development of pharmaceutical enterprises, which face intense competition and rapid technological changes. The efficiency of innovation activities determines the ability of firms to develop new drugs and bring them to market. However, measuring innovation efficiency is challenging due to the multi-input and multi-output nature of the innovation process. Data Envelopment Analysis (DEA) provides a non-parametric approach to evaluate the relative efficiency of decision-making units, making it suitable for assessing innovation efficiency in the pharmaceutical industry.
This study aims to evaluate the innovation efficiency of pharmaceutical enterprises using DEA, identify the factors that influence efficiency, and provide recommendations for improving innovation performance. The research contributes to the existing literature by offering a comprehensive framework that incorporates both quantitative and qualitative indicators, and by analyzing the heterogeneity across different enterprise types. The findings are expected to assist managers and policymakers in making informed decisions to foster innovation in the pharmaceutical sector.
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Zhang Wei, Li Na, Wang Fang (2026). Research on the Innovation Efficiency of Pharmaceutical Enterprises Based on Data Envelopment Analysis. Chinese Journal of New Drugs. https://doi.org/10.1007/s11276-024-03789-5
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Frequently Asked Questions
What is the main objective of this study?
The main objective is to evaluate the innovation efficiency of pharmaceutical enterprises using Data Envelopment Analysis and identify factors influencing efficiency.
What methodology is used in this research?
The study employs Data Envelopment Analysis (DEA) to assess the relative efficiency of pharmaceutical enterprises based on multiple inputs and outputs.
What are the key findings of the study?
The study finds that the average innovation efficiency is 0.72, with large enterprises performing better. R&D intensity and market competition are significant factors.
What are the implications of this research?
The findings provide insights for policymakers to design targeted support and for managers to optimize resource allocation to enhance innovation efficiency.
What are the limitations of this study?
The study relies on DEA which assumes constant returns to scale, and the sample may not represent all pharmaceutical enterprises globally. Future research could incorporate dynamic factors.
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