Journal of Applied Finance & Banking

Applications of a “Carry-Over” Enhanced DSBM Intertemporal Technical Efficiency Model on the Taiwanese 5G Industry

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  • Abstract

     

    Taiwan has proven itself successful at both inventing the key technologies leading to the development of 5G (fifth generation wireless technology)-related industries and serving as an indispensable link in the burgeoning 5G-industrial global supply chain. This study analyzes the current state of Taiwan’s 5G industry via the utilization the purpose of this study is to the Dynamic Slacks-Based Measure (DSBM). To achieve this purpose, a dynamic-data production process model was developed to analyze the 5G industry’s overall relative efficiency. Results indicate that (1) key chip-producing companies typically experience increased efficiency following 5G R&D industry development investment, and that said companies’ relative efficiency is, indeed, affected positively by R&D investment; and (2) key chip companies’ relative increases of efficiency were higher than those of brand terminal and downstream-industry-category companies, while companies with higher levels of R&D investment exhibited relatively higher and more significant levels of efficiency. Finally, it was discovered that the relative efficiency of Taiwan's 5G-related industries’ R&D investment was, indeed, statistically significant in terms of the Taiwanese government’s industrial policies regarding 5G R&D investment.

     

    Keywords: Dynamic Slacks-Based Measure (DSBM), 5G Industry, R&D Inputs.