The evaluation of research & development (R&D) performance has been an important problem of both academic interest and practical need. This paper presents an empirical study in which we use Data Envelopment Analysis (DEA) to evaluate the R&D performance of 52 integrated semiconductor firms located at Hsinchu Science-based Industrial Park in Taiwan. We found that the R&D performance is very different among the evaluated companies, though most of the companies are technically efficient. Moreover, possible directions for the inefficient companies to improve their R&D performance are discussed. In particular, we found that most of the inefficient companies should increase their economic scales.
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