Evaluating R&D efficiency of China’s listed lithium battery enterprises

Bai, Shizhen; Bi, Xinrui; Han, Chunjia; Zhou, Qijun; Shang, Wen-Long; Yang, Mu; Wang, Lin; Ieromonachou, Petros; He, Hao

Abstract

Promoting the growth of the lithium battery sector has been a critical aspect of China’s energy policy in terms of achieving carbon neutrality. However, despite significant support on research and development (R&D) investments that have resulted in increasing size, the sector seems to be falling behind in technological areas. To guide future policies and understand proper ways of promoting R&D efficiency, we looked into the lithium battery industry of China. Specifically, data envelopment analysis (DEA) was used as the primary approach based on evidence from 22 listed lithium battery enterprises. The performance of the five leading players was compared with that of the industry as a whole. Results revealed little indication of a meaningful improvement in R&D efficiency throughout our sample from 2010 to 2019. However, during this period, a significant increase in R&D expenditure was witnessed. This finding was supported, as the results showed that the average technical efficiency of the 22 enterprises was 0.442, whereas the average pure technical efficiency was at 0.503, thus suggesting that they were suffering from decreasing returns to scale (DRS). In contrast, the performance of the five leading players seemed superior because their average efficiency scores were higher than the industry’s average. Moreover, they were experiencing increasing scale efficiency (IRS). We draw on these findings to suggest to policymakers that supporting technologically intensive sectors should be more than simply increasing investment scale; rather, it should also encompass assisting businesses in developing efficient managerial processes for R&D.

Citation

Bai, S., Bi, X., Han, C., Zhou, Q., Shang, W., Yang, M., …He, H. (2022). Evaluating R&D efficiency of China’s listed lithium battery enterprises. Frontiers of Engineering Management, 9(3), 473-485. https://doi.org/10.1007/s42524-022-0213-5

• Journal Article Type: Article
• Acceptance Date: May 27, 2022
• Online Publication Date: Aug 9, 2022
• Publication Date: Sep 1, 2022
• Deposit Date: May 11, 2023
• Publicly Available Date: May 11, 2023
• Journal: Frontiers of Engineering Management
• Print ISSN: 2095-7513
• Electronic ISSN: 2096-0255
• Publisher: Springer
• Peer Reviewed: Peer Reviewed
• Volume: 9
• Issue: 3
• Pages: 473-485
• DOI: https://doi.org/10.1007/s42524-022-0213-5
• Keywords: Data Envelopment Analysis; R&D investment efficiency; China’s listed lithium battery enterprises; technical efficiency; pure technical efficiency; scale efficiency
• Public URL: https://uwe-repository.worktribe.com/output/10778589
• Publisher URL: https://link.springer.com/article/10.1007/s42524-022-0213-5