From innovation to efficiency: how human capital shapes R&D outcomes in the 5G era

Abstract This study examines how research and development (R&D) activities influence firm efficiency and how human capital moderates his relationship within Taiwan’s 5G industry. Motivated by limited empirical evidence on how R&D translates into operational outcomes through workforce capabilities, the research draws on the resource-based view and human capital theory. A dynamic network Data Envelopment Analysis (DEA) model is applied to evaluate innovation, profitability, and overall efficiency using panel data from 27 publicly listed 5G-concept firms over 2013–2023. Patent data were obtained from the Taiwan Intellectual Property Office, and financial data from the Taiwan Economic Journal, while human capital was measured by the average years of employee service. The findings show that firms with higher innovation efficiency exhibit significantly greater profitability efficiency, and that human capital amplifies this positive relationship. These results highlight the pivotal role of experienced and stable workforces in transforming R&D inputs into profitable outcomes, particularly during periods of technological and environmental uncertainty. Theoretically, the study advances the innovation and efficiency literature by integrating dynamic efficiency measurement with a moderating perspective of human capital. Practically, it underscores the need for strategic investment in workforce retention and development to maximize the returns from R&D. The study’s novelty lies in combining a dynamic network DEA framework with moderation analysis to capture the compounded effects of innovation and human capital in a rapidly evolving high-tech industry.