Using hierarchical network data envelopment analysis to explore the performance of national research and development organizations

Founding on the design science research methodology (DSRM), this study integrates an additive network DEA model with hierarchical process to assess the R & D organization's two-stage production process model of "R & D performance" and "economic performance" and address the differences of cross-level organizations for decision analysis. With this proposed approach, we derive the overall composition and partition efficiency of the components and discuss the relationship between system efficiency, partition efficiency and composition of Taiwanese R & D organizations. The efficiency values of the economic stage have significantly increased, while the efficiency values of the R & D performance stage see no evident changes over the sample period. Moreover, the efficiency values of the economic stage are significantly better than the those of the R & D performance stage. On average, the sample R & D organizations still have 64.7% of room for improvement. Overall, the DSRM of this study provides an innovative "artefact" and new insights on the hierarchical process and network structure of national R & D organizations to help policy makers understand the competitive advantages and improve directions of R & D organizations and make the most effective decisions.