Browse > Article
http://dx.doi.org/10.5762/KAIS.2019.20.10.76

The Determinants of R&D and Product Innovation Pattern in High-Technology Industry and Low-Technology Industry: A Hurdle Model and Heckman Sample Selection Model Approach  

Lee, Yunha (Dept. of Management of Technology, Konkuk University)
Kang, Seung-Gyu (Dept. of Management of Technology, Konkuk University)
Park, Jaemin (Dept. of Management of Technology, Konkuk University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.20, no.10, 2019 , pp. 76-91 More about this Journal
Abstract
There have been many studies to examine the patterns in innovations reflecting industry-specific characteristics from an evolutionary economics perspective. The purpose of this study is to identify industry-specific differences in product innovation patterns and determinants of innovation performance. For this, Korean manufacturing is classified into high-tech industries and low-tech industries according to technology intensity. It is also pointed out that existing research does not reflect the decision-making process of firms' R&D implementations. In order to solve this problem, this study presents a Heckman sample selection model and a double-hurdle model as alternatives, and analyzes data from 1,637 firms in the 2014 Survey on Technology of SMEs. As a result, it was confirmed that the determinants and patterns of manufacturing in small and medium-size enterprise (SME) product innovation are significantly different between high-tech and low-tech industries. Also, through an extended empirical model, we found that there exist a sample selection bias and a hurdle-like threshold in the decision-making process. In this study, the industry-specific features and patterns of product innovation are examined from a multi-sided perspective, and it is meaningful that the decision-making process for manufacturing SMEs' R&D performance can be better understood.
Keywords
Innovation Pattern; Market Compensation Effect; Korean Manufacturing Firm; Product Innovation; Formal R&D;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
연도 인용수 순위
1 P. J. Lane, B. R. Koka, S. Pathak, "The Reification of Absorptive Capacity: A Critical Review and Rejuvenation of the Construct", Academy Management Review, Vol.31, No.4, pp. 833-863, 2006. DOI: https://doi.org/10.2307/20159255   DOI
2 H. J. Shon and M. S. Park, "Analysis of Corporate R&D Capability with Industrial's Innovation Trend", The Journal of Information Technology and Architecture, Vol.10, No.1, pp. 47-62, 2013.
3 H. W. Chesbrough, Open Innovation: The New Imperative for Creating and Profiting from Technology, Boston: Harvard Business School Press, 2006.
4 R. Belderbos, M. Carree, B. Diederen, B. Lokchin, B., R. Veugelers, "Heterogeneity in R&D Cooperation Strategies", International Journal of Industrial Organization , Vol.22, No.8-9, pp. 1237-1263, 2004. DOI: https://doi.org/10.1016/j.ijindorg.2004.08.001   DOI
5 C. Schmiedeberg, "Complementarities of Innovation Activities: An Empirical Analysis of the German Manufacturing Sector", Research Policy, Vol.37, No.9, pp. 1492-1503, 2008. DOI: https://doi.org/10.1016/j.respol.2008.07.008   DOI
6 W. Bonte, "R&D and Productivity: Internal vs External R&D - Evidence from West German Manufacturing Industries", Economies on Innovation and New Technology , Vol.12, No.4, pp. 343-360, 2003. DOI: https://doi.org/10.1080/10438590290018415   DOI
7 B. G. Chun and B. J. Jo, "An Analysis of the Characteristics of Suppliers of Part Time Labor", Journal of Market Economy, Vol.43, No.2, pp. 67-99, 2014.
8 J. J. Heckman, "Sample Selection Bias as a Specification Error", Econometrica, Vol.47, No.1, pp. 153-161, 1971. DOI: https://doi.org/10.3386/w0172   DOI
9 J. G. Cragg, "Some Statistical Model for Limited Dependent Variables with Application to the Demand for Durable Goods", Econometrica, Vol.39, No.5, pp. 829-844, 1971. DOI: https://doi.org/10.2307/1909582   DOI
10 J. P. Hong, "Technological Regime, Knowledge Spillover and Innovation", Journal of Technology Innovation , Vol.18, No.2, pp. 147-174, 2010.
11 F. Castellacci, "Innovation and Competitiveness of Industries: Comparing the Mainstream and Evolutionary Approaches", Technological Forecasting & Social Change , Vol.75, No.7, pp. 984-1006, 2007. DOI: https://doi.org/10.1016/j.techfore.2007.09.002   DOI
12 T. K. Sung, "The Determinants of Firm's Innovative Activity: A Comparison of High Technology Industries and Low Technological Industries", Journal of Industrial Economics and Business, Vol.18, No.1, pp. 339-360, 2005.
13 N. Tunzelmann and V. Acha, "Innovation in 'Low-Tech' Industries."in J. Fagerberg, D. Mowery, and R. R. Nelson(eds.). The Oxford Handbook of innovation, Oxford, 2005. DOI: https://doi.org/10.1093/oxfordhb/9780199286805.003 .0015
14 M. Heidenreich, "Innovation patterns and location of European low- and-medium- technology industries", Research Policy , Vol.38, No.3, pp. 483-494, 2009. DOI: https://doi.org/10.1016/j.respol.2008.10.005   DOI
15 J. Tobin, "Estimation of Relationships for Limited Dependent Variables", Econometrica, Vol.26, No.1, pp. 24-36, 1958. DOI: https://doi.org/10.2307/1907382   DOI
16 P. A. Hansen and G. Serin, "Will Low Technology Products Disappear? The Hidden Innovation Processes in Low Technology Industries", Technological Forecasting and Social Change, Vol.55, No.2, pp. 179-191, 1997. DOI: https://doi.org/10.1016/S0040-1625(97)89490-5   DOI
17 J. Park, "The Selection and Decision in R&D and Patents : A Hurdle Negative Binomial Approach", Journal of Korea Technology Innovation Society, Vol.17, No.3, pp. 449-466, 2014.
18 P. Romer, "Endogenous Technological Change", Journal of Political Economy , Vol.98, No.5, pp. 71-102, 1990. DOI: https://doi.org/10.3386/w3210   DOI
19 R. Nelson and S. Winter, An Evolutionary Theory of Economic Change, Cambridge: Harvard University Press, 1982.
20 B. Nooteboom, "Innovation, Learning and Industrial Organization", Cambridge Journal of Economics, Vol.23, No.2, pp. 127-150, 1999. DOI: https://doi.org/10.1093/cje/23.2.127   DOI
21 F. Malerba and L. Orsenigo, "Schumpeterian Patterns of Innovation are Technology Specific", Research Policy, Vol.25, No.3, pp. 451-478, 1996. DOI: https://doi.org/10.1016/0048-7333(95)00840-3   DOI
22 K. Pavitt, "Sectoral patterns of technical change: Towards a taxonomy and a theory", Research Policy, Vol.13, No.6, pp. 343-373, 1984. DOI: https://doi.org/10.1016/0048-7333(84)90018-0   DOI
23 M. Robson, J. Townsend, K. Pavitt, K, "Sectoral Patterns of Production and Use of Innovations in the UK: 1945 - 1983", Research Policy, Vol.17, No.1, pp. 1-14, 1988. DOI: https://doi.org/10.1016/0048-7333(88)90017-0   DOI
24 M. S. Freel, "Sectoral Patterns of Small Firm Innovation, Networking and Proximity", Research Policy, Vol.32, No.5, pp. 751-770, 2003. DOI: https://doi.org/10.1016/S0048-7333(02)00084-7   DOI
25 S. Breschi, F. Malerba, L. Orsenigo, "Technological Regimes and Schumpeterian Patterns of Innovation", Economic Journal, Vol.110, No.463, pp. 388-410, 2000. DOI: https://doi.org/10.1111/1468-0297.00530   DOI
26 F. Malerba,, "Sectoral Systems of Innovation and Production", Research Policy, Vol.31, No.2, pp. 247-264, 2002. DOI: https://doi.org/10.1016/S0048-7333(01)00139-1   DOI
27 T. Hatzichronoglou, "Revision of the High-Technology Sector and Product Classification", STI Working Paper, No. OECD/GD(97)216, Paris: OECD, 1997. DOI: https://doi.org/10.1787/18151965
28 P. L. Robertson and P. R. Patel, "New Wine in Old Bottles: Technological Diffusion in Developed Economies", Research Policy, Vol.36, No.5, pp. 708-721. 2007. DOI: https://doi.org/10.1016/j.respol.2007.01.008   DOI
29 OECD, Proposed Guidelines for Collecting and Interpreting Technological Innovation Data: the Oslo Manual, Paris: OECD, 1997.
30 F. Block and M. R. Keller, "Where Do Innovation Come From? Transformations in the US Economy, 1970-2006", Socio-Economic Review, Vol.7, No.3, pp. 459-483, 2009. DOI: https://doi.org/10.1093/ser/mwp013   DOI
31 T. Kemeny and T. Osman, "The Wider Impacts of High-Technology Employment: Evidence from U.S. Cities", CGR Working Papers, 89, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research, 2018.
32 A. Escribano, A. Fosfuri and J. A. Tribo, "Managing External Knowledge Flows: The Moderating Role of Absorptive Capacity", Research Policy, Vol.38, No.1, pp. 96-105, 2009. DOI: https://doi.org/10.1016/j.respol.2008.10.022   DOI
33 C. Kohler and K. Schmierl, "Diffusion of cim-tech nologies and trends in work organization", Structural Change and Economic Dynamics, Vol.2, No.2, pp. 381-394, 1991. DOI: https://doi.org/10.1016/S0954-349X(05)80009-8   DOI
34 K. W. Joo, "The Change in the Long-Term Export Competitiveness of Korean Manufacturing Industries according to Technology Intensity", Journal of International Trade Studies, Vol.8, No.1, pp. 1-31, 2002.
35 S. I. Park and B. C. Yoo, "Changes in Regional Industrial Structure and Regional Economic Growth: From the Perspective of Science and Technology", Journal of the Korean Regional Science Association, Vol.23, No.2, pp. 117-147, 2007.
36 The Small and Medium Business Administration.Korea Federation of Small and Medium Business, 2014 Survey on Technology of SMEs, Seoul: Korea Federation of Small and Medium Business, 2014.
37 M. S. Freel, "Patterns of Innovation and Skills in Small Firms", Technovation, Vol.25, No.2, pp. 123-134, 2005. DOI: https://doi.org/10.1016/S0166-4972(03)00082-8   DOI
38 A. Leiponen, "Skills and Innovation", International Journal of Industrial Organization, Vol.23, No.5, pp. 303-323, 2005. DOI: https://doi.org/10.1016/j.ijindorg.2005.03.005   DOI
39 L. Santamaria, M. J. Nieto, A. Barge-Gil, "Beyond Formal R&D: Taking Advantage of Other Sources of Innovation in Low-and Medium-Technology Industries", Research Policy , Vol.38, No.3, pp. 507-517, 2009. DOI: https://doi.org/10.1016/j.respol.2008.10.004   DOI
40 A. Barge-Gil, N. M. Jesus, L. Santamaria, "Hidden Innovators: The Role of Non-R&D Activities", Technology Analysis & Strategic Management, Vol.23, No.4, pp. 415-432, 2011. DOI: https://doi.org/10.1080/09537325.2011.558400   DOI
41 J. L. Hervas-Oliver, F. Sempere-Ripoll, C. Boronat-Moll, R. Rojas, "Technological Innovation without R&D: Unfolding the Extra Gains of Management Innovations on Technological Performance", Technology Analysis & Strategic Management, Vol.27, No.1, pp. 19-38, 2015. DOI: https://doi.org/10.1080/09537325.2014.944147   DOI
42 E. P. Gallie and D. Legros, "French firms' Strategies for Protecting Their Intellectual Property", Research Policy, Vol.41, No.4, pp. 780-794, 2012. DOI: https://doi.org/10.1016/j.respol.2011.12.008   DOI
43 W. M. Cohen and D. A. Levinthal, "Absorptive Capacity: A New Perspective on Learning and Innovation", Administrative Science Quarterly, Vol.35, No.1, pp. 128-152, 1990. DOI: https://doi.org/10.2307/2393553   DOI
44 J. J. J. P. Jansen, F. A. J. Van Den Bosch, H. W. Volberda, "Managing Potential and Realized Absorptive Capacity: How Do Organizational Antecedents Matter?", Academy of Management Journal, Vol.48, No.6, pp. 999-1015, 2005.   DOI
45 J. Y. Noh, M. K. Chung, J. D. Rah, "Analysis on the Patterns of Technological Innovation in Korean Manufacturing Sector in accordance with Technology Intensity", Journal of Technology Innovation, Vol.18, No.2, pp. 33-58, 2010.
46 S. S. Kim, "Analysis of the Impact of Firm Charact eristics on Preference of IP Policy", The Journal of Intellectual Property , Vol.11, No.3, pp. 259-290, 2016.   DOI
47 S. S. Kim and S. J. Choi, "Analysis on Preference of Appropration Methods in Korean Manufacturing: Focusing on Patents and Trade Secrets", Journal of Technology Innovation, Vol.24, No.2, pp. 143-175, 2016.   DOI
48 H. Loof and A. Heshmati, "Knowledge Capital and Performance Heterogeneity: A Firm-level Innovation Study", Production Economics, Vol.76, pp.61-85, 2002.   DOI
49 I. Hashia and N. Stojcic, "The Impact of Innovation Activities on Firm Using a Performance Multi-stage Model: Evidence From the Community Innovation Survey 4", Research Policy, Vol.42, pp. 353-366, 2013. DOI: https://doi.org/10.1016/j.respol.2012.09.011   DOI
50 P. D'Este, M. Amara and J. Olmos-Penuela,"Fostering Novelty while Reducing Failure: Balancing the Twin Challenges of Product Innovation", Technological Forecasting & Social Change, Vol.113, pp. 280-292, 2016. DOI: https://doi.org/10.1016/j.techfore.2015.08.011   DOI
51 D. M. Morris, "Innovation and Productivity among Heterogeneous Firms", Research policy, Vol.47, pp. 1918-1932, 2018. DOI: https://doi.org/10.1016/j.respol.2018.07.003   DOI
52 J. Masso and P. Vahter, "Technological Innovation and Productivity in Late-transition Estonia: Econometrics Evidence From Innovation Surveys", The European Journal of Development Research, Vol.20, No.2, pp. 240-261, 2008. DOI: https://doi.org/10.2139/ssrn.1126281   DOI
53 A. Leiponen and J. Byma, "If you Cannot Block, You Better Run: Small firms, Cooperative Innovation, and Appropriation Strategies", Research Policy, Vol.38, No.9, pp. 1478-1488, 2009. DOI: https://doi.org/10.1016/j.respol.2009.06.003   DOI