Title: The efficiency of corporate research and development in Slovenia and the United States of America: A comparative data envelopment analysis approach(BI-US-24-26-011)
Head of the research group: doc. dr. Dejan Ravšelj (1. 7. 2024 – 30. 6. 2026)
Nowadays, research and development (R&D) investment is becoming a critical element in generating a competitive advantage for companies, causing them to invest persistently in R&D activities. This stems from the global economy shifting from an economy based on industry to one based on knowledge, which has drastically altered both the business environment and how different stakeholders function. This is seen in the global competition becoming ever tougher, which is forcing companies to provide value-added products, processes and services. This is why R&D investment is indispensable in modern business operations because it helps companies retain their market position in terms of competitiveness. According to the current rising position of R&D investment, it is no surprise that R&D expenditures play a vital role in the overall investment activity of the business sector. In the global context, several major world economies are considered to be the most important drivers of overall world R&D activity. These are the European Union, including Slovenia, the United States of America, as well as China and Japan, which together represent about 90% of total world R&D expenditures. Nevertheless, recent trends and the evolution of R&D intensity in major world economies reveal that R&D expenditures continue to move from Western economies (the European Union, including Slovenia, and the United States of America) toward Eastern economies (China and Japan), raising numerous questions about the efficiency of top R&D spending companies in different major world economies.
The main aim of the research is to examine the efficiency of corporate research and development in Slovenia and the United States of America by considering a comparative perspective. Although there exist empirical studies examining R&D efficiency, their results often differ, presumably due to: 1) different measurements of performance; 2) different characteristics of companies; and 3) different economy-specific institutional frameworks. Accordingly, this research will address all of these issues through the application of Data Envelopment Analysis (DEA). This nonparametric method represents an essential and modern mathematical tool for measuring the efficiency and productivity of decision-making units, which has strongly expanded in recent years. The empirical analysis proposed by the project will also consider the particularities of the firm-level data. Therefore, several different DEA models will be employed in the research (e.g. two-stage DEA model, meta-frontier slack-based measure (SBM) approach, generalized equilibrium efficient frontier DEA model etc.).
The project tries to help strengthen the knowledge of policymakers in Slovenia and the United States of America. Moreover, the project embeds the important elements of scalability, as the results will provide a framework for further empirical studies that are transferable to the international context. The exchange of specific knowledge and experience represents the added value of the collaboration between researchers from Slovenia and the United States of America. The main aims of collaboration are the following: 1) to combine the theoretical and empiricalperspective of the presented research topic; 2) to establish a basis for future collaboration in research projects; and 3) to enhance/include collaboration between young scholars andexperienced researchers. All researchers involved in this project are experts in their corresponding fields. The proposed research will contribute systematically and comprehensively to thegeneral literature with new theoretical and empirical evidence. The empirical analysis will be embedded into a profound theoretical and methodological background. The results of thisresearch will contribute to academic and practical knowledge and will be helpful to researchers and practitioners in this field when exploring the further implications in both theory andpractice. Joint contributions are planned for selected international conferences. The outcome of the cooperation is also planned to be visible in the form of scientific papers published insome highly indexed (ISI) journals.
Duration (from/to):
from 1. 7. 2024 to 30. 6. 2026
Contracting Authority:
Slovenian Research and Innovation Agency
Project Partner:
Pennsylvania State University at Harrisburg, School of Business Administration
Financing:
Memebers of the research group:
doc. dr. Dejan Ravšelj (head of the research team)
Members of the research group in the partner country:
prof. dr. Parag C. Pendharkar
Objectives of bilateral cooperation activities
The bilateral cooperation activity aims to help strengthen the knowledge of policy makers in Slovenia and Croatia. In addition, the bilateral cooperation activity includes important elements of scalability, as the results will provide a framework for further empirical studies that are transferable to an international context. The added value of the cooperation between researchers from Slovenia and Croatia is the exchange of specific knowledge and experience.
The main objectives of the cooperation are:
1) to combine the theoretical and empirical perspectives of the research topic presented;
2) to establish a basis for future cooperation on research projects; and
3) to strengthen/include cooperation between young and experienced researchers. All researchers involved in this bilateral cooperation activity are experts in their respective fields. The proposed research will contribute to the general literature with new theoretical and empirical evidence in a systematic and comprehensive way.
The empirical analysis will be embedded in an in-depth theoretical and methodological background. The results of this research will contribute to academic and practical knowledge and will help researchers and practitioners in the field to conduct research in theory and practice. Complementarity will be exercised by combining theoretical and empirical questions. In addition, the bilateral cooperation activity is a good opportunity to involve young researchers in international cooperation, as both partners involve selected young PhD students or postdoctoral researchers in the research work. Students from both institutions will also benefit as both leaders of the bilateral cooperation activity plan to present the main results of the research during their guest lectures at the partner institutions. Joint presentations at selected international conferences are foreseen. The outcome of the cooperation should also be visible in the form of scientific articles published in some highly indexed (ISI) journals.