Modeling the influence of age on the technical efficiency by sector and time periods

Abstract

In today’s competitive economy, technological leadership and technical efficiency are key to the successful development of enterprises, countries and territories. This paper investigates the influence of factors on the technical efficiency of a business. Situations where technical efficiency is calculated by the DEA method, and its determinants are defined in regression models, including tobit regression models, have been considered. The determinants of technical efficiency identified by foreign researchers have been systematised. Modeling of the influence of the “Age” factor on the technical efficiency of enterprises in six leading sectors of Russia’s economy over the period 2015–2019 has been performed. It has been found that the “Age” factor has different effects on technical efficiency in different industry sectors. Particularly, in the food industry younger companies are more technically efficient, while mature companies are more technically efficient in the information technology sector. Accordingly, the directions and priorities for incentives should differ across sectors of the economy. In particular, the technological development of the food industry requires support for the generation processes of young enterprises and start-ups. In the information technology sector, the priority should be to support mature enterprises and the growth processes of young enterprises to maturity.

Keywords

• technological leadership
• technical efficiency
• determinants
• age of firm
• young enterprises
• old enterprises
• industry
• services
• dea method
• tobit models
• regression analysis
• econometric modeling
• innovative development
• russia