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The Effect of Government Policies on the Innovation Performance of Korean Pharmaceutical Industry

Author Hye-Seon Moon Date 2012.12.31 Page 49
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This paper intends to discuss the effectiveness of government
policies for supporting Korean pharmaceutical companies using the
comparison of R&D efficiency business efficiency scores between
government policy supporting groups and non-supporting groups.
First of all, the framework for understanding innovation activities
were suggested and the five main indicators such as R&D input,
R&D output, and business output, R&D efficiency, and business
efficiency indicators were discussed in order to evaluate the overall
innovation activities of Korean pharmaceutical firms. Data Envelopment
Analysis (DEA) was then employed to measure the R&D efficiency
and business efficiency of Korean pharmaceutical firms, as it is
a useful method to measure efficiency with multiple inputs and
outputs.