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http://dx.doi.org/10.14400/JDC.2020.18.1.001

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

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)
Publication Information
Journal of Digital Convergence / v.18, no.1, 2020 , pp. 1-10 More about this Journal
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.
Keywords
Defense Industry; Government Support; Policy; Innovation; DID;
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Times Cited By KSCI : 8  (Citation Analysis)
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