Intellectual property rights and information technology industry development

Abstract

We adopt two DEA methods, including the BCC and SBM Super-Efficiency methods, to investigate whether a patent is an important factor in the development of the information technology (IT) industry of Taiwan. The data consists of 24 Taiwanese IT sub-industries covering the period 2002 to 2003. Our empirical results show that (1) A patent is an influential factor in evaluating the efficiency of the IT industry. (2) The average efficiency scores of the IT sub-industries with high royalty fees are significantly higher than those with lower royalty fees. (3) Based on the non-radial and slacks-based Malmquist TFP index, we find that the productivity of Taiwan’s IT industry has increased and that technical change has improved during the data period.

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