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The purpose of the study is to examine the efficiency of R&D and non-R&D firms in Indian pharmaceutical firms from 2000 to 2010 comprising both pre and post product patent periods by applying data envelopment analysis technique. The analysis based on a panel sample data set of 141 firms, drawn from PROWESS database of CMIE, measures efficiency by using one output and four inputs. Net sales revenue is taken as output and raw material cost, salaries and wages, advertisement and marketing cost and capital cost as inputs. The study found that efficiency of R&D firms was higher than that of non-R&D intensive firms for all the years. Nevertheless, both types of firms were found to have a good scope for improvement in their resource use efficiency without affecting their level of output. [ABSTRACT FROM AUTHOR]