The R&D value-chain efficiency measurement for high-tech industries in China

This study constructs the research and development (R&D) and operation processes as a value-chain framework, in which R&D results in the successful applications of patents. These patents are then used to generate final outputs in the operation. We introduce an empirical model extended from the value-chain model to compute the R&D and the operation efficiencies for 21 of China’s high-tech businesses in a single implementation. The findings are presented as follows. First, R&D efficiency is not related to operation efficiency. Second, communication businesses have relatively higher performance in R&D and operation efficiencies, whereas electronics and computer businesses have high operation efficiency, but low R&D efficiency. Finally, for improving the efficiencies, the patents that do not effectively create value should be reduced.