Modern Research in Decision Making

Evaluation of Innovation with a Combination of Two-Stage DEA and Cooperative Game Theory

Document Type : Original Article

Authors

Leila Ghoroghchian 1
Reza Soleymani-Damaneh 2
Salim Karimi-Takalo 3

1 Master of Industrial Management, Department of Management, Faculty of Administrative Sciences and Economics, Vali Asr University (AJ), Rafsanjan, Iran

2 Assistant Professor, Department of Management, Faculty of Administrative Sciences and Economics, Vali Asr University (AJ), Rafsanjan, Iran

3 Associate Professor, Department of Management, Faculty of Administrative Sciences and Economics, Vali Asr University (AJ), Rafsanjan, Iran

Abstract
Today, one of the main components of the sustainable development of organizations and among the methods of overcoming economic and technological challenges is innovation. Evaluation of the innovation process is an important issue in knowledge-based companies. One of the innovation evaluation methods is two-stage DEA, which allows considering multiple inputs and outputs and the internal structure without any special assumption regarding the production function. In this research, the theory of cooperative games was used to determine the optimal value of intermediate variables. A non-linear cooperative model for a consecutive two-stage structure with surplus input and output and conditions to the variable scale of development and two calculation procedures of variable first stage efficiency and variable second stage efficiency were proposed to solve it. Considering the two stages of research and development and commercialization for the innovation process, the efficiency of the stages and the total of 9 knowledge-based information and communication technology companies was calculated. The results showed that only one company is efficient in both stages and research and development has a greater contribution to the ineffectiveness of innovation in companies compared to commercialization. The results give important insights to managers to identify the source of inefficiency and prioritize resource allocation.

Keywords

Innovation Evaluation
Two-Stage DEA
Knowledge-Based Companies
Cooperative Games Theory
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