Analyzing Government Support Program for R&D Collaboration and Distribution for Korean SMEs: A Case for Equipment Leasing Program

Purpose: This study attempted to identify determinants affecting research collaboration and R&D distribution activities, especially regarding facility and equipment leasing of small and medium enterprises (SMEs) in South Korea. The objective of this study was to find the most significant firm characteristics that affect firms participating in an R&D collaboration and distribution program and investing in R&D in terms of leasing payment for equipment. Research design, data, and methodology: This study analyzes which SMEs' characteristics influence external research cooperation activities by examining the SMEs that received government support for equipment leasing using multiple regression analysis and residual plots. The survey combined two databases: 1) a fact-finding survey of participating firms by the Ministry of SMEs and Startups, and 2) leasing information by the Korea Association of University, Research Institute and Industry. Results: The study found that firm size positively impacts R&D investment, R&D collaboration and distribution. Conclusions: The study provided evidence to policymakers and government officials that firms with more employees will more likely participate in government support programs. The study results also prove that government officials believe firm location does not impact R&D investment, R&D collaboration and distribution.