Measuring the Technology Transition Performance by Data Envelopment Analysis

Abstract

This study aims to examine the technology transition efficiency of the U.S. Department of Defense (DoD) Small Business Innovation Research (SBIR) program. To attain it, this study decomposes the process of technology transition into three sub-processes: research and development (R&D), network building, and commercialization. By employing data envelopment analysis (DEA), this study examines the efficiency of each sub-process at firm and agency levels. Subsequently, Tobit regression analyses explore what factors influence the efficiency measures. Based upon the results of DEA and Tobit analyses applied to federal procurement contracts, SBIR awards, and patent data of 252 technology-based small businesses, this study finds that firm-level efficiency ranges from 30% to 60%, while agency-level ones are between 70% and 90%. Commercialization efficiency is relatively higher at the firm level, whereas network building efficiency is relatively higher than others at the agency level. Efficiency-related significant factors include the number of employees, degree of technology distance relative to DoD and prime contractors, location, industrial focus, and primary affiliation with DoD agencies.