Skip to main content
SpringerLink
Log in

R&D and Performance Analysis of Indian Pharmaceutical Firms: An Application of DEA

  • Conference paper
  • First Online:
Proceedings of the Third International Conference on Soft Computing for Problem Solving

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 259))

  • 1534 Accesses

Abstract

The purpose of the study is to examine the efficiency of R&D and non-R&D firms in Indian pharmaceutical firms from 2000 to 2010 comprising both pre and post product patent periods by applying data envelopment analysis technique. The analysis based on a panel sample data set of 141 firms, drawn from PROWESS database of CMIE, measures efficiency by using one output and four inputs. Net sales revenue is taken as output and raw material cost, salaries and wages, advertisement and marketing cost and capital cost as inputs. The study found that efficiency of R&D firms was higher than that of non-R&D intensive firms for all the years. Nevertheless, both types of firms were found to have a good scope for improvement in their resource use efficiency without affecting their level of output.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 259.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 329.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Similar content being viewed by others

References

  1. CCI: A brief report pharmaceutical industry in India. Retrieved from www.cci.in/pdf/surveys_reports/indian-pharmaceuticals-industry.pdf (2012). Accessed 10 Feb 2013

  2. Government of India: Annual Report, Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers (2012)

    Google Scholar 

  3. Nauriyal, D.K.: TRIPS-compliant new patents act and Indian pharmaceutical sector: directions in strategy and R&D. Indian J. Econ. Bus. Special issue China & India (2006)

    Google Scholar 

  4. Nauriyal, D.K., Sahoo, D.: The new IPR regime and Indian drug and pharmaceutical industry: An empirical analysis. Paper Presented at 3rd Annual Conference of the EPIP Association, Bern, Switzerland—Gurten Park/October 3–4 2008 (2008)

    Google Scholar 

  5. Greene, W.: The emergence of India’s pharmaceutical industry and implications for the U.S. Generic Drug Market. Office of Economics Working Paper. U.S. International Trade Commission (2007)

    Google Scholar 

  6. Chaudhari, K., Das, S.: WTO, the TRIPS and Indian pharmaceutical industry. J. Quant. Econ. 4(1), 97–110 (2006)

    Google Scholar 

  7. Neogi, C., Ghosh, B.: Intertemporal efficiency variation in Indian manufacturing industries. J. Prod. Anal. 5, 301–324 (1994)

    Article  Google Scholar 

  8. Saranga, H., Phani, B.V.: Determinants of operational efficiencies in the Indian pharmaceutical industry. Int. Trans. Oper. Res. 16, 109–130 (2009)

    Article  MATH  Google Scholar 

  9. Mazumdar, M., Rajeev, M.: Comparing the efficiency and productivity of the Indian pharmaceutical firms: a Malmquist-Meta-Frontier approach. Int. J. Bus. Econ. 8(2), 159–181 (2009)

    Google Scholar 

  10. Pannu, H.S., Kumar, U.D., Farooquie, J.A.: Efficiency and productivity analysis of Indian pharmaceutical industry using data envelopment analysis. Int. J. Oper. Res. 10(1), 121–136 (2011)

    Article  Google Scholar 

  11. Gonzalez, E., Gascon, F.: Sources of productivity growth in the Spanish pharmaceutical industry (1994–2000). Res. Policy 33, 735–745 (2004)

    Article  Google Scholar 

  12. Hashimoto, A., Haneda, S.: Measuring the change in R&D efficiency of the Japanese pharmaceutical industry. Res. Policy 37(10), 1829–1836 (2008)

    Article  Google Scholar 

  13. Coelli, T., Rao, D.S.P., Battese, G.: An introduction to Efficiency and Productivity Analysis. Kluwar Academic Publishers, London (1998)

    Book  MATH  Google Scholar 

  14. Charnes, A., Cooper, W.W., Rhodes, E.: Measuring the efficiency of decision making units. Eur. J. Oper. Res. 2, 429–441 (1978)

    Article  MATH  MathSciNet  Google Scholar 

  15. Banker, R.D., Charnes, A., Cooper, W.W.: Some models for the estimation of technical and scale inefficiencies in data envelopment analysis. Manage. Sci. 30, 1078–1092 (1984)

    Article  MATH  Google Scholar 

  16. Avkiran, N.K.: Investigating technical and scale efficiencies of Australian universities through data envelopment analysis. Socio-Econ. Plann. Sci. 35(1), 57–80 (2001)

    Article  Google Scholar 

  17. Ramanathan, R.: An Introduction to Data Envelopment Analysis: A tool for Performance Measurement. Sage Publishing, New Delhi (2003)

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Humanities and Social Sciences, Indian Institute of Technology Roorkee, Roorkee, 247667, India

    Varun Mahajan, D. K. Nauriyal & S. P. Singh

Authors
  1. Varun Mahajan
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. D. K. Nauriyal
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. S. P. Singh
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Varun Mahajan .

Editor information

Editors and Affiliations

  1. Department of Paper Technology, Indian Institute of Technology Roorkee, Roorkee, Uttarakhand, India

    Millie Pant

  2. Department of Mathematics, Indian Institute of Technology Roorkee, Roorkee, Uttarakhand, India

    Kusum Deep

  3. Department of Mathematics and Computer Science, Liverpool Hope University, Liverpool, United Kingdom

    Atulya Nagar

  4. Department of Applied Mathematics, South Asian University, New Delhi, India

    Jagdish Chand Bansal

Rights and permissions

Reprints and permissions

Copyright information

© 2014 Springer India

About this paper

Cite this paper

Mahajan, V., Nauriyal, D.K., Singh, S.P. (2014). R&D and Performance Analysis of Indian Pharmaceutical Firms: An Application of DEA. In: Pant, M., Deep, K., Nagar, A., Bansal, J. (eds) Proceedings of the Third International Conference on Soft Computing for Problem Solving. Advances in Intelligent Systems and Computing, vol 259. Springer, New Delhi. https://doi.org/10.1007/978-81-322-1768-8_28

Download citation

  • DOI: https://doi.org/10.1007/978-81-322-1768-8_28

  • Published:

  • Publisher Name: Springer, New Delhi

  • Print ISBN: 978-81-322-1767-1

  • Online ISBN: 978-81-322-1768-8

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics

Search

Navigation