Measuring research efficiency and its determining factors for Indonesian R&D institutions: does scientific publication make a difference?

Purpose: The outcomes of public research institutions (PRIs), also known as research and development (R&D) institutions, in developing countries, including Indonesia, are still dubious. This study aims to measure the efficiency of R&D institutions using the case of the Indonesian Institute of Sciences, with and without an assessment of the role of scientific publication. Design/methodology/approach: A panel data envelopment analysis (DEA) model is used to estimate the research efficiency of Indonesian R&D institutions during the period 2016–2019 based on the relationship between intellectual property (IP), research budgets and number of active researchers. The Tobit model is subsequently applied to analyze the factors that affect efficiency. Findings: The DEA analysis shows an average efficiency value of 0.361, implying that 42% of the decision-making units (DMUs) have above-average efficiency scores. When scientific publication is added as an output variable, the efficiency increases to an average of 0.545, resulting in 53% of the DMUs with above-average efficiency. Research limitations/implications: The main implication is that scientific publications can increase the output of R&D institutions in Indonesia. This study recommends strengthening the research group establishment led by research professors along with setting acceptable high output targets. Researcher competence must be improved together with support for research collaboration among the different fields of science. Scientific publications should be considered part of IP measurement along with the type of mandate of each PRI. Practical implications: This study offers a method of evaluation of research efficiency that can be applied to institutions outside Indonesia, thus furthering the dialogue on science and technology policy management. Originality/value: This paper contributes to the literature by using a new and comprehensive method to measure research output – that of IP measurement, including new scientific publication. The implications provide action points for the governments to support R&D institutions and for research practitioners to augment research output.