Value efficiency analysis of academic research

We propose a systematic approach to analyzing academic research performance at universities and research institutes. The analysis is based on identifying a set of decision-relevant (abstract) criteria. The scales for these criteria are defined by means of concrete indicators, all which are, however, not necessarily quantitative. Qualitative information is quantified using appropriate analytical tools. Once the criteria and indicators have been agreed upon and quantified, data on the research units are collected and a value efficiency analysis is performed. The efficiency of research units is defined in the spirit of data envelopment analysis, complemented with decision maker's (DM's) (rector in the European university system) preference information. This information is obtained by asking the DM to locate a point on the efficient frontier having the most preferred combination of input and output values. Our approach and the accompanying decision support system enables a university to allocate resources more efficiently than previously to its research units. Using data from the Helsinki School of Economics, we illustrate how the approach works.