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http://dx.doi.org/10.14400/JDC.2017.15.4.117

The Effects of Government Support and Regulation on SMEs Technology Innovation  

Sohn, Dongseop (Dept. of Management of Technology, Sungkyunkwan University)
Lee, Jungsoo (Korea Institute of Robots and Convergence)
Kim, Yunbae (Dept. of Systems Management Engineering, Sungkyunkwan University)
Publication Information
Journal of Digital Convergence / v.15, no.4, 2017 , pp. 117-125 More about this Journal
Abstract
The purpose of this study is to investigate the actual effect of government R&D support and regulation as a policy on technology innovation of SMEs. Because the previous studies did not consider the endogeneity of R&D support and made inconsistent conclusions in the case of regulation, the empirical research was conducted by logistic, negative binomial regression and 2SLS analysis for 1,223 SMEs. The analysis results show that government support has the effect for technology innovation even considering the endogeneity of government R&D support, and government regulation has a positive effect on technology innovation which supports Porter's theory. These results imply that government R&D support is important in inducing technology innovation because of the vulnerability of SMEs technology development environment and government should foster SMEs technology innovation through appropriate regulation policies rather than unconditional deregulation.
Keywords
Government support; Regulation; Technology innovation; SMEs; Two-stage least squares;
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