Measuring the importance and efficiency of research and development expenditures in the transformation of knowledge-based economies: a case study of the ASEAN region

Article


Afzal, Munshi Naser Ibne and Lawrey, Roger. 2014. "Measuring the importance and efficiency of research and development expenditures in the transformation of knowledge-based economies: a case study of the ASEAN region." International Journal of Asia: Pacific Studies. 10 (1), pp. 33-47.
Article Title

Measuring the importance and efficiency of research and development expenditures in the transformation of knowledge-based economies: a case study of the ASEAN region

ERA Journal ID21404
Article CategoryArticle
AuthorsAfzal, Munshi Naser Ibne (Author) and Lawrey, Roger (Author)
Journal TitleInternational Journal of Asia: Pacific Studies
Journal Citation10 (1), pp. 33-47
Number of Pages15
Year2014
Place of PublicationPenang, Malaysia
ISSN1823-6243
Web Address (URL)http://ijaps.usm.my/?page_id=2270
Abstract

This paper presents an evaluation of the efficient use of public research and development (R&D) expenditure in the ASEAN (Association of Southeast Asian Nations) region by using Data Envelopment Analysis (DEA). The efficiency of public R&D expenditure is measured as a percentage of GDP, by considering it as an input to knowledge generation. Two knowledge outputs are considered, namely real GDP growth and high-tech goods export as a percentage of total manufacturing exports. All data are collected from World Development Indicators (2010), World Competitiveness Yearbook (2011) and ASEAN publications. The efficiency results are prepared following both constant returns to scale (CRS) and variable returns to scale (VRS) assumptions. The efficiency scores under CRS suggest that the Philippines and Indonesia were the best performers in 2010 while under VRS, Singapore and Thailand were the most efficient countries in 2010. Special emphasis is placed on how to present the DEA results to government and policy makers in order to provide more policy guidance on how to achieve optimum knowledge output relative to R&D expenditure.

KeywordsKBE; knowledge economy; public R&D expenditure; real GDP growth; high-tech exports; DEA; CRS; VRS; scale efficiency; efficiency scores
ANZSRC Field of Research 2020440499. Development studies not elsewhere classified
380204. Panel data analysis
359999. Other commerce, management, tourism and services not elsewhere classified
Public Notes

© Penerbit Universiti Sains Malaysia, 2014. Open access journal. This publication is copyright. It may be reproduced in whole or in part for the purposes of study, research, or review, but is subject to the inclusion of an acknowledgment of the source.

Byline AffiliationsSchool of Commerce
Institution of OriginUniversity of Southern Queensland
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