This study estimates input market power by introducing an input-market-based Lerner index based on data envelopment analysis (DEA). This index is an extension to the DEA-based Lerner index. In doing so, we develop a revenue function, which is based on minimum distance framework. DEA based-Lerner indexes are commonly based on efficiency measures aiming at finding the “farthest” strongly efficient point. However, if firms operate in non-optimal scales, then such a methodological treatment can be restrictive. In our case, we adopt the minimum distance. We utilize a strongly revenue-efficient frontier and model a DEA based Lerner index which is less restrictive. We apply our index to a sample of global biotechnology and pharmaceutical (B&P) firms over the period 2015–2019. We further investigate the effect of firms’ research and development (R&D) on firms’ market power estimated by the input-market DEA-based Lerner indexes. Our findings suggest that the investment on R&D has a nonlinear effect on firms’ market power. Finally, our finding suggest that the positive effect of R&D is more pronounced on the estimated firms’ employees-based market power compared to the asset-based market power index.

本研究通过引入基于数据包络分析 (DEA) 的基于投入市场的勒纳指数来估计投入市场力量。该索引是基于 DEA 的 Lerner 索引的扩展。为此，我们开发了一个基于最小距离框架的收益函数。基于 DEA 的 Lerner 索引通常基于效率度量，旨在找到“最远”的强效率点。然而，如果公司以非最佳规模经营，那么这种方法论处理可能会受到限制。在我们的例子中，我们采用最小距离。我们利用了一个收入效率很高的边界，并模拟了一个限制较少的基于 DEA 的 Lerner 指数。我们将我们的指数应用于 2015-2019 年期间的全球生物技术和制药 (B&P) 公司样本。我们进一步调查了公司研发（R& D) 基于投入市场 DEA 的 Lerner 指数估计的公司市场力量。我们的研究结果表明，研发投资对企业的市场力量具有非线性影响。最后，我们的研究结果表明，与基于资产的市场力量指数相比，研​​发对估计的公司基于员工的市场力量的积极影响更为明显。