Comparative evaluation of performance of national R&D programs with heterogeneous objectives: A DEA approach

Abstract

The strategic importance of performance evaluation of national R&D programs is highlighted as the resource allocation draws more attention in R&D policy agenda. Due to the heterogeneity of national R&D programs'''''''' objectives, however, it is intractably difficult to relatively evaluate multiple programs and. consequently, few studies have been conducted on the performance comparison of the R&D programs. This study measures and compares the performance of national R&D programs using data envelopment analysis (DEA). Since DEA allows each DMU to choose the optimal weights of inputs and outputs which maximize its efficiency, it can mirror R&D programs'''''''' unique characteristics by assigning relatively high weights to the variables in which each program has strength. Every project in every R&D program is evaluated together based on the DEA model for comparison of efficiency among different systems. Kruskal-Wallis test with a post hoc Mann-Whitney U test is then run to compare performance of R&D programs. Two alternative approaches to incorporating the importance of variables, the AR model and output integration, are also introduced. The results are expected to provide policy implications for effectively formulating and implementing national R&D programs. (C) 2008 Elsevier B.V. All rights reserved.