Efficiency and Total Factor Productivity of ICT Industries
The Korean Data Analysis Society, Yunki Cho, Sun-Hee Kwon · The Korean Data Analysis Society · 2022
This paper measured R&D investments efficiency and total factor productivity(TFP) of ICT industries reflecting the time lag of R&D investments and R&D stock as a input, and decomposed the sources of total factor productivity change into technical change and technical efficiency change by the non-parametric Malmquist productivity index. The results of this study are as follows. First, efficiency scores of ICT industries are 39%, and Manufacture of semiconductor components and bare printed circuit boards and loading of electronic components onto PCB showed highest efficiencies. Second, total factor productivity decreased 6.6% annually. But manufacture of semiconductor components and bare printed circuit boards and loading of electronic components onto PCB, and system and package software publishing showed productivity increase, and technical progress contributed to TFP increase. Third, technical efficiency did much for TFP decrease of ICT industries. Technical progress, however, reduced the extent of TFP decrease.