Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
권호 표지
DOI QR코드

DOI QR Code

The Effect of External R&D on the Innovation Efficiency : An Empirical Study of Manufacturing Industries in Korea

외부 R&D가 혁신 효율성에 미치는 영향 분석 : 국내 제조 산업을 중심으로

  • Lee, Jiyoung (Department of Industrial Engineering, Hanyang University) ;
  • Kim, Chulyeon (Graduate School of Technology and Innovation Management, Hanyang University) ;
  • Choi, Gyunghyun (Graduate School of Technology and Innovation Management, Hanyang University)
  • 이지영 (한양대학교 산업공학과) ;
  • 김철연 (한양대학교 기술경영전문대학원) ;
  • 최경현 (한양대학교 기술경영전문대학원)
  • Received : 2016.11.14
  • Accepted : 2016.12.28
  • Published : 2016.12.31
Download PDF
⟨ Previous Next ⟩

Abstract

The external R&D, which includes the adoption of the external technology and knowledge in addition to the internal R&D, is one of important factors for the innovation. Especially for small and medium-sized enterprises (SMEs), the external R&D has been considered as a key factor to carry out the innovation more efficiently due to the limitations of their resources and capacities. However, most of extant studies related to external R&D have focused on analyzing the influence of external R&D on innovation outputs or outcomes. Only a few studies have explored the impact of external R&D on the innovation efficiency. This study therefore investigates whether the external R&D effects the industry's innovation efficiency and productivity. On this study, we used Korean manufacturing industry data of SMEs from 2012 to 2014 and employed a global Malmquist productivity analysis technique, which is based on the Data Envelopment Analysis (DEA), to assess the innovation efficiency and productivity. Innovation performances of external R&D group and internal R&D group are compared. Then, the sectoral patterns of both innovation efficiency and productivity are analyzed with respect to the technological intensity, which is introduced by OECD. The results show that the gap of innovation efficiency between external and internal R&D groups has gradually decreased because of the continuous improvement of the external R&D group's performance, while the external R&D group lag behind the internal R&D group. In addition, patterns of the innovation efficiency and productivity change were different depending on the technological intensity, which means that the higher the technological intensity, the greater the effect of external R&D.

Keywords

References

  1. Ahuja, G., Collaboration Networks, Structural Holes, and Innovation : A Longitudinal Study Gautam Ahuja, Administrative Science Quarterly, 2000, Vol. 45, No. 3, pp. 425-55. https://doi.org/10.2307/2667105
  2. Baek, C. and Noh, M., A Study on the contribution of firms' open innovation strategies to R&D efficiency, Productivity Review, 2013, Vol. 27, No. 4, pp. 302-19. https://doi.org/10.15843/kpapr.27.4.201312.302
  3. Banker, R.D., Charnes, A., and Cooper, W.W., Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis, Management Science, 1984, Vol. 30, No. 9, pp. 1078-92. https://doi.org/10.1287/mnsc.30.9.1078
  4. Berchicci, L., Towards an open R&D system : Internal R&D investment, external knowledge acquisition and innovative performance, Research Policy, 2013, Vol. 42, No. 1, pp. 117-27. https://doi.org/10.1016/j.respol.2012.04.017
  5. Brown, M.G. and Svenson, R.A., Measuring R&D Productivity, Research-Technology Management, 1988, Vol. 31, No. 4, pp. 11-5.
  6. Caves, D.W., Christensen, L.R., and Erwin, D.W., The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity, Econometrica, 1982, Vol. 50, No. 6, pp. 7393-1414.
  7. Charnes, A., Cooper, W.W., and Rhodes, E., Measuring the efficiency of decision making units, European Journal of Operational Research, 1978, Vol. 2, No. 6, pp. 429-44. https://doi.org/10.1016/0377-2217(78)90138-8
  8. Chesbrough, H.W., Open Innovation : The New Imperative for Creating And Profiting from Technology, Harvard Business School Press, 2003.
  9. Cruz-Cazares, C., Bayona-Saez, C., and Garcia-Marco, T., You can't manage right what you can't measure well : Technological innovation efficiency, Research Policy, 2013, Vol. 42, No. 6-7, pp. 1239-50. https://doi.org/10.1016/j.respol.2013.03.012
  10. Czarnitzki, D., Ebersberger, B., and Fier, A., The relationship between R&D collaboration, subsidies and R&D performance : Empirical evidence from Finland and Germany, Journal of Applied Econometrics, 2007, Vol. 22, No. 7, pp. 1347-66. https://doi.org/10.1002/jae.992
  11. Den Hertog, R.G.J., Determinants of internal and external R&D : Some Dutch evidence, Economist, 1993, Vol. 141, No. 2, pp. 279-89. https://doi.org/10.1007/BF01717384
  12. Fare, R., Grosskopf, S., Norris, M., and Zhang, Z., Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries, The American Economic Review, 1994, Vol. 84, No. 1, pp. 66-83.
  13. Grimpe, C. and Kaiser, U., Balancing Internal and External Knowledge Acquisition : The Gains and Pains from R&D Outsourcing, Journal of Management Studies, 2010, Vol. 47, No. 8, pp. 1483-509. https://doi.org/10.1111/j.1467-6486.2010.00946.x
  14. Guan, J. and Chen, K., Measuring the innovation production process : A cross-region empirical study of China's high-tech innovations, Technovation, 2010, Vol. 30, No. 5-6, pp. 348-58. https://doi.org/10.1016/j.technovation.2010.02.001
  15. Guan, J., Zuo, K., Chen, K., and Yam, R.C.M., Does country-level R&D efficiency benefit from the collaboration network structure?, Research Policy, 2016, Vol. 45, No. 4, pp. 770-84. https://doi.org/10.1016/j.respol.2016.01.003
  16. Guan, J.C., Yam, R.C.M., Mok, C.K., and Ma, N., A study of the relationship between competitiveness and technological innovation capability based on DEA models, European Journal of Operational Research, 2006, Vol. 170, No. 3, pp. 971-86. https://doi.org/10.1016/j.ejor.2004.07.054
  17. Gulati, R. and Singh, H., The Architecture of Cooperation : Managing Coordination Costs and Appropriation Concerns in Strategic Alliances, Administrative Science Quarterly, 1998, Vol. 43, No. 4, pp. 781-814. https://doi.org/10.2307/2393616
  18. Hagedoorn, J., Understanding the rationale of strategic technology partnering : Nterorganizational modes of cooperation and sectoral differences, Strategic Management Journal, 1993, Vol. 14, No. 5, pp. 371-85. https://doi.org/10.1002/smj.4250140505
  19. Han, Y.J., The relationship between the main elements of internal and external R&D companies with corporate performance, Journal of the Korea Management Engineers Society, 2016, Vol. 21, No. 1, pp. 39-57.
  20. Hashimoto, A. and Haneda, S., Measuring the change in R&D efficiency of the Japanese pharmaceutical industry, Research Policy, 2008, Vol. 37, No. 10, pp. 1829-1836. https://doi.org/10.1016/j.respol.2008.08.004
  21. Hatzichronoglou, T., Revision of the High-Technology Sector and Product Classification, OECD Science, Technology and Industry Working Papers, 1997.
  22. Heidenreich, M., Innovation patterns and location of European low- and medium-technology industries, Research Policy, 2009, Vol. 38, No. 3, pp. 483-94. https://doi.org/10.1016/j.respol.2008.10.005
  23. Hollanders, H. and Celikel-Esser F., Measuring innovation efficiency, INNO-Metrics Themat Pap, 2007.
  24. Hwang, J., Han, J.H., and Kang, H., The Impact of Innovative Collaboration on the Performance of Small and Medium Enterprises, Journal of Korea Technology Innovation Society, 2010, Vol. 13, No. 2, pp. 332-64.
  25. Jeon, I. and Lee, H., Performance Evaluation of R&D Commercialization : A DEA-Based Three-Stage Model of R&BD Performance, Journal of Korean Institute of Industrial Engineers, 2015, Vol. 41, No. 5, pp. 425-38. https://doi.org/10.7232/JKIIE.2015.41.5.425
  26. Kaihua, C. and Mingting, K., Staged efficiency and its determinants of regional innovation systems : a twostep analytical procedure, The Annals of Regional Science, 2014, Vol. 52, No. 2, pp. 627-57. https://doi.org/10.1007/s00168-014-0604-6
  27. Kim, H. and Yang, D., Study of the Determinants of R&D Cooperation : Empirical Evidence from Korean Manufacturing SMEs, Journal of the Korea Academia- Industrial Cooperation Society, 2014, Vol. 15, No. 11, pp. 6587-98. https://doi.org/10.5762/KAIS.2014.15.11.6587
  28. Kim, J.-H. and Park, J.-H., Open Technological Collaboration Performance in Korean Small and Medium Enterprises : Moderating Role of Environmental Complexity, Journal of the Korean Production and Operations Management Society, 2011, Vol. 22, No. 2, pp. 255-76.
  29. Kim, Y.J., Technological Collaboration Linkages and the Innovation Output in Small and Medium-sized Firms : A Study on the Moderating Effects of Absorptive Capacity, Korean Management Review, 2005, Vol. 34, No. 5, pp. 1365-90.
  30. Lee, C., Lee, K., and Pennings, J.M., Internal capabilities, external networks, and performance : a study on technology-based ventures, Strategic Management Journal, 2001, Vol. 22, No. 6-7, pp. 615-40. https://doi.org/10.1002/smj.181
  31. Lee, H., Park, Y., and Choi, H., Comparative evaluation of performance of national R&D programs with heterogeneous objectives : A DEA approach, European Journal of Operational Research, 2009, Vol. 196, No. 3, pp. 847-55. https://doi.org/10.1016/j.ejor.2008.06.016
  32. Lee, J., Small firms' innovation in two technological settings, Research Policy, 1995, Vol. 24, No. 3, pp. 391- 401. https://doi.org/10.1016/0048-7333(93)00772-L
  33. Lee, J.D. and Chung, Y.H., R&D Productivity Analysis of Small and Medium Sized Manufacturing Enterprises in Korea, Accounting Information Review, 2014, Vol. 32, No. 1, pp. 51-68.
  34. Lee, S.K., Mogi, G., Lee, S.K., Hui, K.S., and Kim, J.W., Econometric analysis of the R&D performance in the national hydrogen energy technology development for measuring relative efficiency : The fuzzy AHP/DEA integrated model approach, International Journal of Hydrogen Energy, 2010, Vol. 35, No. 6, pp. 2236-46. https://doi.org/10.1016/j.ijhydene.2010.01.009
  35. Liu, J.S. and Lu, W.M., DEA and ranking with the network- based approach : A case of R&D performance, Omega, 2010, Vol. 38, No. 6, pp. 453-64. https://doi.org/10.1016/j.omega.2009.12.002
  36. Love, J.H. and Mansury, M.A., External linkages, R&D and innovation performance in US business services, Industry and Innovation, 2007, Vol. 14, No. 5, pp. 477-96. https://doi.org/10.1080/13662710701711380
  37. Lu, W. and Liu, T., Malmquist indices of R&D productivity growth in taiwanese IC-design industry, Global Journal of Business Research, 2010, Vol. 4, No. 1, pp. 105-14.
  38. Min, H.-K., Kim, T.-Y., and Hwang, S.-J., Open Innovation R&D Efficiency Evaluation by Integrated AHPDEA, Journal of Society of Korea Industrial and Systems Engineering, 2012, Vol. 35, No. 4, pp. 149-61. https://doi.org/10.11627/jkise.2012.35.4.149
  39. Moon, H.Y. and Chang, S.J., A Study on the Effect of Innovation Performance Through Business Innovation Activities and Techniques for the Small and Medium Size Company, Journal of the Korean Society for Quality Management, 2015, Vol. 43, No. 2, pp. 151-68. https://doi.org/10.7469/JKSQM.2015.43.2.151
  40. Nasierowski, W. and Arcelus, F.J., On the efficiency of national innovation systems, Socio-Economic Planning Sciences, 2003, Vol. 37, No. 3, pp. 215-34. https://doi.org/10.1016/S0038-0121(02)00046-0
  41. Pastor, J.T. and Lovell, C.A.K., A global Malmquist productivity index, Economics Letters, 2005, Vol. 88, No. 2, pp. 266-271. https://doi.org/10.1016/j.econlet.2005.02.013
  42. Pavitt, K., Sectoral patterns of technical change : Towards a taxonomy and a theory, Research Policy, 1984, Vol. 13, No. 6, pp. 343-73. https://doi.org/10.1016/0048-7333(84)90018-0
  43. Piga, C.A. and Vivarelli, M., Internal and External R&D : A Sample Selection Approach, Oxford Bulletin of Economics and Statistics, 2004, Vol. 66, No. 4, pp. 457-82. https://doi.org/10.1111/j.1468-0084.2004.00089.x
  44. Powell, W.W., Koput, K.W., and Smith-doerr, L., Interorganizational Collaboration and the Locus of Innovation : Networks of Learning in Biotechnology, Administrative Science Quarterly, 1996, Vol. 41, No. 1, pp. 116-45. https://doi.org/10.2307/2393988
  45. Rothwell, R., External networking and innovation in small and medium-sized manufacturing firms in Europe, Technovation, 1991, Vol. 11, No. 2, pp. 93-112. https://doi.org/10.1016/0166-4972(91)90040-B
  46. Santamaria, L., Nieto, M.J., and Barge-Gil, A., Beyond formal R&D : Taking advantage of other sources of innovation in low- and medium-technology industries, Research Policy, 2009, Vol. 38, No. 3, pp. 507-17. https://doi.org/10.1016/j.respol.2008.10.004
  47. Shaw, B., Networking as an Innovation Strategy, In : Innovation Strategies : Theoretical Approaches-Experiences- Improvements, Amsterdam : Elsevier, 1992, pp. 127-40.
  48. Shin, J.K. and Im, C.H., Cross Functional Cooperation, External Network, R&D Efficiency, and Firm Profitability, Journal of Human Resource Management Research, 2009, Vol. 16, No. 2, pp. 197-212.
  49. Tsai, K. and Wang, J., Inward technology licensing and firm performance : a longitudinal study, R&D Management, 2007, Vol. 37, No. 2, pp. 151-60. https://doi.org/10.1111/j.1467-9310.2007.00464.x
  50. Tsai, K.-H. and Wang, J.-C., External technology acquisition and firm performance : A longitudinal study, Journal of Business Venturing, 2008, Vol. 23, No. 1, pp. 91-112. https://doi.org/10.1016/j.jbusvent.2005.07.002
  51. Tsai, K.-H. and Wang, J.-C., External technology sourcing and innovation performance in LMT sectors : An analysis based on the Taiwanese Technological Innovation Survey, Research Policy, 2009, Vol. 38, No. 3, pp. 518-26. https://doi.org/10.1016/j.respol.2008.10.007
  52. Tsai, K.-H., Hsieh, M.-H., and Hultink, E.J., External technology acquisition and product innovativeness : The moderating roles of R&D investment and configurational context, Journal of Engineering and Technology Management, 2011, Vol. 28, No. 3, pp. 184-200. https://doi.org/10.1016/j.jengtecman.2011.03.005
  53. Wang, E.C. and Huang, W., Relative efficiency of R&D activities : A cross-country study accounting for environmental factors in the DEA approach, Research Policy, 2007, Vol. 36, No. 2, pp. 260-73. https://doi.org/10.1016/j.respol.2006.11.004
  54. Yang, D.-W. and Kim, D.-J., Causal Relationship between Firms' R&D Collaboration and Performance in Contents Industry, The Journal of the Korea Contents Association, 2010, Vol. 10, No. 4, pp. 306-16. https://doi.org/10.5392/JKCA.2010.10.4.306
  55. Yuan, P., Chen, Q., and Hu, R., Dynamic Change of Region Innovation Performance in China : An Analysis of Malmquist Index, Science of Science and Management of S.&T., 2007.
  56. Zhong, W., Yuan, W., Li, S.X., and Huang, Z., The performance evaluation of regional R&D investments in China : An application of DEA based on the first official China economic census data, Omega, 2011, Vol. 39, No. 4, pp. 447-55. https://doi.org/10.1016/j.omega.2010.09.004

Cited by

  1. 연구개발 활동 효율성의 산업간 비교 분석: 기술혁신형 중소기업을 대상으로 vol.29, pp.3, 2016, https://doi.org/10.14386/sime.2021.29.3.33
  2. Comparing and Identifying Influential Factors of Technological Innovation Efficiency in Manufacturing and Service Industries Using DEA: A Study of SMEs in South Korea vol.13, pp.23, 2016, https://doi.org/10.3390/su132312945