A study of business performance of the biotechnology companies in Taiwan Science Park analyzing With DEA

• Main Authors: Chia-WenOu, 歐佳雯
• Other Authors: Hae-Ching Chang
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/17771416362274137234

碩士 === 國立成功大學 === 國際經營管理研究所碩士在職專班 === 100 === The main purpose of this study is use DEA efficiency analysis to explore the operational efficiency of sample companies, as well as cross-period performance. The research approach adopted is DEA efficiency analysis, divided into two aspects: scale efficiency and technical efficiency, to see whether the sample companies reach optimal scale or Pareto efficient. If not, there are some suggestions for improvement as a reference to the relevant industry and government department. The main conclusions drawn from this study are: 1.The biotechnology industry must respond to market demand for product diversification and design capabilities. The competitive advantage of Taiwan’s biotech industry is medical equipment and medical industries, and other peripheral industries. The business model on the development of new drugs is restricted by the U.S. FDA new drug development process. The process is too long and therefore we must develop other business models to generate cash flow. 2.Revenue from one single product line can not be sustained for long. Once the market demand changes, revenue performance would suffer. 3.If biotechnology companies focused only on the development of new drugs or biochips, they risk encountering technical bottlenecks or market bottlenecks. Once that happen, it will be difficult to break through the operating environment and may result in a less than ideal “revenue / net worth” ratio. 4.The slack variable analysis in this study shows that companies below the optimal economic scale should reduce the ratio of “non-R＆D operating costs and expenses to total revenue” and transfer the resource to R＆D to improve long term development. 5.When operating efficiency is below economic scale, the company should invest more on the R＆D to speed up new products generation or diversification. As for non-R＆D operating cost and expenses that focus on the short term development should be reduced to strengthen profitability. But those companies that adopt the development of new drugs as their business model, their R＆D expenses should be properly regulated to avoid waste.