An analysis of productive efficiency and innovation activity using DEA: An application to Spain's wood-based industry

This paper intends to analyze the relationship between productive efficiency and innovation activity in Spain's wood-based industry. The methodology includes two levels of analysis. First, a non-parametric technique (data envelopment analysis, DEA) is applied with several inputs and outputs associated to economic and financial data. In a second stage, a logistic regression model explores the relationship between the property of efficiency and innovation activity indicators. This approach is used to analyze a set of firms in the following sectors: lumber and wood products, pulp and paper and wood furniture. Results do not show the existence of significant links between firm's efficiency and innovation activities. This outcome is consistent with a low firm priority toward R&D as a means to achieve competitiveness and an innovation strategy followed by many Spanish firms based on the acquisition of embodied technology available in international markets. In order to improve competitiveness in the long run, efforts should be made by Spanish wood-based firms to increase their production of in-house technologies.