Journal of Digital Convergence (디지털융복합연구)

The Society of Digital Policy and Management (한국디지털정책학회)
권호 표지
DOI QR코드

DOI QR Code

A Study on the Effect of Government Support on the Innovation of Defense Industry: Evidence from Korean firms

방위산업 혁신에 대한 정부지원 효과에 관한 연구: 우리나라 방산기업을 중심으로

  • Kong, Hee-Jung (Department of Management of Technology, Konkuk University) ;
  • Bong, Kang Ho (Department of Management of Technology, Konkuk University) ;
  • Park, Jaemin (Department of Management of Technology, Konkuk University)
  • 공희정 (건국대학교 기술경영학과) ;
  • 봉강호 (건국대학교 기술경영학과) ;
  • 박재민 (건국대학교 기술경영학과)
  • Received : 2019.11.13
  • Accepted : 2020.01.20
  • Published : 2020.01.28
Download PDF
⟨ Previous Next ⟩

Abstract

In this study, an empirical analysis using Difference-in-Difference(DID) methods was conducted based on the data of domestic defense companies to look at the impact of government support on the performance of these defense industries. As a result, we found that the volume of sales and assets of defense enterprises does not increase or decrease solely on the benefit of government support. In addition, government support for net profit to total sales ratio and net profit to total assets ratio improved significantly, but the effect was only seen in the short term. Unlike previous studies that focused on identifying the existence of differences between industries, our research is different in that it is the first to analyze empirically within the Korean defense industry. It is also theoretically meaningful in that it looked at the effects of government support, especially in industries with unique characteristics that have yet to be known.

본 연구에서는 산업혁신 관점에서 정부지원이 이러한 방위산업 성과에 미치는 영향을 살펴보기 위하여 국내 방산기업 자료를 바탕으로 이중차분법(DID)을 활용한 실증분석을 수행하였다. 분석 결과, 방산기업의 매출 및 자산규모는 정부지원 수혜만으로 증대 또는 감소하지 않는 것으로 나타났다. 또한 총매출 대비 당기순이익 및 총자산 대비 당기 순이익에 대한 정부지원은 이들을 크게 개선시킨 것으로 나타났으나, 그 효과가 단기적으로만 나타나는 것으로 관측되었다. 본 연구는 산업 간 차이 존재 유무를 규명하는 데 초점을 둔 기존 연구들과 달리, 방위산업 내에서 실증적으로 분석하는 최초의 연구라는 점에서 차별성이 있다. 특히 아직 알려진 바가 거의 없는 독특한 특성을 가진 산업에서의 정부지원 효과를 살펴보았다는 점에서 이론적으로도 의의가 있다.

Keywords

References

  1. F. Malerba. (2004). Sectoral Systems of Innovation: Concepts, Issues and Analyses of Six Major Sectors in Europe. New York : Cambridge University Press.
  2. J. H. Love & S. Roper. (1999). The Determinants of Innovation: R&D, Technology Transfer and Networking Effects. Review of Industrial Organization, 15(1), 43-64. DOI : 10.1023/A:1007757110963
  3. K. Pavitt. (1984). Sectoral patterns of technical change: Towards a taxonomy and a theory. Research Policy, 13(6), 343-373. DOI : 10.1016/0048-7333(84)90018-0
  4. F. Malerba & L. Orsenigo. (1996). Schumpeterian patterns of innovation are technology-specific. Research Policy, 25(3), 451-478. DOI : 10.1016/0048-7333(95)00840-3
  5. J. Y. Choung & H. R. Hwang. (2017). Sectoral Innovation Studies: A Review of the Literature and Its Implications. Journal of Technology Innovation, 25(3), 115-154. https://doi.org/10.14383/SIME.2017.25.3.115
  6. K. H. Bong, J. Y. Park & J. Park. (2018). The Study on the Performance and Determinants of Product Innovation in Machinery Industry. Journal of the Korea Academia-Industrial Cooperation Society, 19(9), 427-434. DOI: 10.5762/KAIS.2018.19.9.427
  7. S. Choi, B. S. Ko & H. S. Lee. (2010). The Development Process and Achievement of the Korean Defense Industry for Last 40 Years. The Quarterly Journal of Defense Policy Studies, 26(1), 73-117. https://doi.org/10.22883/JDPS.2010.26.1.003
  8. S. Park & J. Na. (2015). A Study on the Efficiency Analysis of Defense R&D Project by Using DEA Model: Focusing Application and Testing Technology. Journal of Business Research, 30(3), 57-84. https://doi.org/10.22903/JBR.2015.30.3.57
  9. H. Y. Rhee. (2014). Market Failure and Government Failures in Efficiency. Journal of the National Academy of Sciences, Republic of Korea, 53(1), 421-458.
  10. J. H. Kim. (2011). The Economics of Innovation. 4th ed. , Seoul : Sigma Press.
  11. P. A. David, B. H. Hall & A. A. Toole. (2000). Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence. Research Policy, 29(4-5), 497-529. DOI : 10.1016/S0048-7333(99)00087-6
  12. B. C. Cin & P. G. Lee. (2016). An Analysis of Government Policy Effects on InnoBiz Firms' Productivity. Productivity Review, 30(1), 29-51. https://doi.org/10.15843/kpapr.30.1.201603.29
  13. D. Sohn, J. Lee & Y. Kim. (2016). The Effects of Government Support and Regulation on SMEs Technology Innovation. Journal of Digital Convergence, 15(4), 117-125. DOI : 10.14400/JDC.2017.15.4.117
  14. H. J. Song, Y. B. Kim & O. R. O. (2006). The Study on the Effect of SBC Policy Funding Programs on the Improvement of Financial Performance. The Korean Small Business Review, 28(4), 65-80. DOI : 10.14400/JDC.2017.15.4.117
  15. S. Woo & K. Lee. (2013). The Causal Effects of New Growth Funds on the Financial Performance of SMEs. Asian Review of Financial Research, 26(2), 183-211.
  16. J. Kim, K. H. Bong & J. Park. (2019). A Study on the Effects of Government Subsidies on Industrial Human Resource Development: Focused on Work-Learning Dual System. Productivity Review, 33(2), 91-116. https://doi.org/10.15843/kpapr.33.2.2019.06.91
  17. S. Oh & S. Kim. (2018). Performance and Direction of R&D Support for Small and Medium-sized Enterprises. STEPI Insight, 224, 1-30.
  18. N. Kwon & S. Ko. (2004). The Effects of Government R&D Direct Subsidies on Corporate R&D Investments. KUKJE KYUNGJE YONGU, 10(2), 157-181.
  19. D. K. Yoon & D. W. Yang. (2013). An Emperical Study on a Cause of the Gap between Technological Success Rate and Commercialization Success Rate on the Government-Funded R&D Projects of SMEs. The Journal of Digital Policy & Management, 11(8), 127-141.
  20. Y. H. Chung. (2005). Impact of Defense Industry-Specific Factors upon Technology Innovation and Market Share. Korea Association of Defense Industry Studies, 12(2), 81-108.
  21. M. K. Ra. (2013). A Study on Establishing Governance for the Improvement of the Competitive Power of South Korea's Defense Industry. Korea Association of Defense Industry Studies, 20(3), 167-185.
  22. Y. M. Park & O. S. Jeon. (2013). A Study on the Global Competitiveness Analysis for the Korea's Defense Industry in the Global Defense Market. The Journal of Korea Research Society for Customs, 14(2), 211-233.
  23. OECD & Eurostat. (2018). Oslo Manual 2018: Guidelines for Collecting, Reporting and Using Data on Innovation, 4th Edition. The Measurement of Scientific, Technological and Innovation Activities. Paris & Luxembourg : OECD Publishing & Eurostat. DOI : 10.1787/9789264304604-en
  24. Security Management Institute(SMI). (2018). A Study on the Establishment of Policy and Institutions for the Innovation of the Defense Industry. Gwacheon : Defense Acquisition Program Administration.
  25. J. J. Heckman, R. J. Lalonde & J. A. Smith. (1999). The Economics and Econometrics of Active Labor Market Programs. Handbook of Labor Economics, 3(A), 1865-2097. DOI : 10.1016/S1573-4463(99)03012-6
  26. J. J. Heckman, H. Ichimura & P. E. Todd. (1998). Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme. The Review of Economic Studies, 64(4), 605-654. DOI : 10.2307/2971733
  27. S. J. Woo. (2018). Stata for Policy Analysis. Paju : Jiphil Media.
  28. Y. J. Lee & C. Park. (2010). A Study on the Revitalization of Small and Medium-sized Enterprises Competition. Gwacheon : Fair Trade Commision.
  29. N. Doi. (1992). The Efficiency of Small Manufacturing Firms in Japan. Small Business Economics, 4(1), 29-35. DOI : 10.1007/BF00402213
  30. J. Lee & J. S. Yang. (2017). Effect of Government Energy R&D Investment on the Sales of Beneficiary Firms. New & Renewable Energy, 13(1), 72-79. DOI : 10.7849/ksnre.2017.3.13.1.072
  31. P. S. Jang & S. W. Hwang. (2019). Analysis of Economic and Social Effects of Industrial Technology R&D and a Plan for Improvement. STEPI Insight, 232, 1-27.
  32. Y. H. Noh. (2010). The Role and Performance of Policy Loan on the SMEs in Korea: Firm-level Evidence. Asian Pacific Journal of Small Business, 32(1), 153-175.
  33. P. M. Romer. (1986). Increasing Returns and Long-Run Growth. Journal of Political Economy, 94(5), 1002-1037. DOI : 10.1086/261420
  34. R. G. Cooper. (1994). Perspective Third-generation New Product Processes. Journal of Product Innovation Management, 11(1), 3-14. DOI : 10.1016/0737-6782(94)90115-5
  35. D. Dougherty. (2001). Reimagining the Differentiation and Integration of Work for Sustained Product Innovation. Organization Science, 12(5), 612-631. DOI : 10.1287/orsc.12.5.612.10096
  36. K. H. Bong & J. Park. (2018). A Study on Technological Innovation and Employment Performance from the Perspective of Process: Focused on Small and Medium Sized Enterprises. Journal of Korea Technology Innovation Society, 21(4), 1508-1535.
  37. K. H. Bong, S. Park & J. Park. (2019). What Types of Public R&D Support Increase Employment Performance? Evidence from Korean Firm-level Data. Applied Economics Letters, Forthcoming. DOI: 10.1080/13504851.2019.1644425