Effectiveness of Corporate R&D Expenditure and Human Resources in Czech Industry

Effectiveness of Corporate R&D Expenditure and Human Resources in Czech Industry

conference paper

Czech

The aim of this paper is to use unconventional comparative method on data on production factors spent on research and development (R&D) in manufacturing industry. Manufacturing industry was chosen because it is the traditional industrial sector and the main source of GDP in the Czech Republic. The paper deals with the application of data envelopment analysis; it is a useful tool for determination of effective/ineffective position of individual branches of manufacturing industry. Data envelopment analysis is based on assessing the quantity of consumed inputs by the produced outputs and estimation of production possibility frontier. Production function is estimated by techniques of linear programming. R&D personnel, researches and R&D expenditure are regarded as inputs; innovations, patent applications and other objects of industrial property are considered as outputs. Effectiveness of R&D expenditures and effectiveness of manpower are important elements of the competitiveness of the manufacturing industry, but it is also a way to increase the competitiveness of the Czech Republic in the EU which is in connection with the objectives of Competitiveness Strategy of the Czech Republic 2012-20. It was found that manufacture of machinery and equipment n.e.c., as an industry with the largest number of research entities in the private sector, is effective throughout the monitored period given to maximum effectiveness of resources invested in R&D to the number of outputs. On the contrary, manufacture of motor vehicles, trailers and semitrailers and other transport equipment, which is considered to be the core area of the Czech economy, is characterized by a low level of efficiency. Low efficiency of R&D in this sector can be the cause of decline in the number of entities that are involved in R&D.

The aim of this paper is to use unconventional comparative method on data on production factors spent on research and development (R&D) in manufacturing industry. Manufacturing industry was chosen because it is the traditional industrial sector and the main source of GDP in the Czech Republic. The paper deals with the application of data envelopment analysis; it is a useful tool for determination of effective/ineffective position of individual branches of manufacturing industry. Data envelopment analysis is based on assessing the quantity of consumed inputs by the produced outputs and estimation of production possibility frontier. Production function is estimated by techniques of linear programming. R&D personnel, researches and R&D expenditure are regarded as inputs; innovations, patent applications and other objects of industrial property are considered as outputs. Effectiveness of R&D expenditures and effectiveness of manpower are important elements of the competitiveness of the manufacturing industry, but it is also a way to increase the competitiveness of the Czech Republic in the EU which is in connection with the objectives of Competitiveness Strategy of the Czech Republic 2012-20. It was found that manufacture of machinery and equipment n.e.c., as an industry with the largest number of research entities in the private sector, is effective throughout the monitored period given to maximum effectiveness of resources invested in R&D to the number of outputs. On the contrary, manufacture of motor vehicles, trailers and semitrailers and other transport equipment, which is considered to be the core area of the Czech economy, is characterized by a low level of efficiency. Low efficiency of R&D in this sector can be the cause of decline in the number of entities that are involved in R&D.

research and development, expenditure, researchers, human resources, investment, effectiveness, data envelopment analysis, industry

v

BOČKOVÁ, N.; DOČEKALOVÁ, M.

2013

25. 4. 2013

Tomas Bata University in Zlin

Zlin

978-80-7454-246-6

Finance and the Performance of firms in science, education, and practice

126

135

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