Efficiency and productivity growth of technology-based firms in business incubators: A DEA and Malmquist index approach

Business Incubators can play a major role in helping to turn a business idea into a technology-based organization economically efficient. However, there is a shortage in the literature regarding the efficiency evaluation and productivity evolution of the new technology-based firms (NTBFs) in the incubation scope. This study aims to develop a model based on the Data Envelopment Analysis (DEA) methodology, which allows the incubated NTBFs to evaluate and improve the efficiency of their management. Moreover, Malmquist index is used to examine productivity change. The index is decomposed into multiple components to give insights into the root sources of productivity change. The proposed model was applied on a case study with 13 NTBFs incubated. In the case study it was possible to conclude that inefficient firms invest excessively in Research and Development (R&D), and on average, firms have a productivity growth in the period of study.