much more outputs with the same inputs, or use less inputs to get the same amount
of outputs. As we mentioned in the second chapter, efficiency is the prime source of
productivity, thus evaluating efficiency properly is the basis and prerequisite of
researching productivity.
According to the varied goals of studies, there are several types of efficiency in
production economics, such as Technical Efficiency (TE), Scale Efficiency (SE),
Allocative Efficiency (AE). TE is used to measure the ability of onefirm to obtain
maximal output from a given set of inputs. AE is used to measure the ability of one
firm to use the inputs in optimal proportions, given their respective prices and the
production technology. In economics, it’s usual to characterize the input–output
efficiency of a production process by production function. Econometrics have
developed various kinds of production functions, such as linear homogeneous
function, Cobb-Douglas (C-D) production function, Constant Elastic Substitution
(CES) production function, stochastic frontier function, etc. SE refers to the optimal
scale of afirm, reflecting the change of outputs associated with the change of
inputs. The concept of SE has close relationship with production function. When
SE = 1, it indicates thefirm has scale efficiency, otherwise, thefirm has scale
inefficiency. There are two cases in scale inefficiency, one is increasing return to
scale, the other is decreasing return to scale. Measuring the scale efficiency of
university research has very important realistic significance. When operating on the
stage of increasing return to scale, universities should enlarge their research size,
while operating on the stage of decreasing return to scale, they should reduce their
research size. For university research administrators, it’s necessary to think about
questions such as whether the current techniques are fully used, the resources are
well-allocated, and the research staff scale is optimal.
Therefore, one question worth to be considered is how to scientifically construct
a proper indicator system for the evaluation of university research efficiency, in
order to facilitate universities to obtain more outputs from the less inputs in the
research production process.
4.1.2 Indicator System of University Research Production
Efficiency
4.1.2.1 Principles to Construct the Indicator System
Scientifically constructing a proper indicator system for the evaluation on 211Us’
research efficiency is the basis and prerequisite of this research. In general, there are
three principles should be satisfied when we’re trying to construct the indicator
system. Thefirst is systematicness, that is, the indicator system should systemati-
cally embody the comprehensive state of university research activity, reflecting not
only the direct outcomes of research production, but also some indirect effects. It’s
necessary to objectively select the indicators related to research strength, but also
114 4 Evaluation on Research Efficiency of 211Us: The DEA Approach