• Journal of Technology Innovation
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• v.28 no.2
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• pp.63-100
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• 2020

This study analyzes the effectiveness of government supported R&D program for SMEs by measuring TFP improvements. We estimate TFP for Korean companies from 2011 to 2018 using Levinsohn and Petrin (2003) method which reduces endogenous problem. Then government R&D beneficiary companies were extracted from the NTIS and linked to TFP estimates. The empirical results are as follows. First, as a result of estimating production function, the contribution of TFP to value-added is more important than in the past. Second, the TFP gap between large firms and SMEs continues to wide and there is no sign of easing.(from 3.72 times in 2011 to 5.23 times in 2018). Third, SMEs beneficiaries show higher TFP level than non-beneficiaries. However their TFP was on the decline until government support. After government supported R&D program, it reverses upward. Fourth, although one-year TFP improvement of beneficiaries is bigger than non-beneficiaries, it is smaller than the control group through PSME. Because SMEs participating in government R&D programs had showed downward trend of TFP until R&D program, it is necessary to examine whether there is a fundamental discordance between the demand of SMEs for R&D program and governments policy goal. More sophisticated program design will be required to escape the recognition that government R&D programs for SMEs are just charity.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.20 no.11
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• pp.487-493
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• 2019

This study examines the ratio of R&D expenses in intangible assets for pharmaceutical companies, and determines whether these expenses affect the firm value among companies listed on the KOSDAQ. The research subjects included annual R&D expenses of 39 pharmaceutical companies listed on the KOSDAQ between 2011 and 2017. The survey was achieved via "Panel Data Model" with "Tobin Q" as an independent variable, and the ratio of R&D expenses in intangible as a dependent variable. Results of the study conclude that the ratio of R&D expenses in intangible assets of KOSDAQ pharmaceutical companies negatively influence the Tobin Q (Enterprise Value). A large proportion of intangible assets indicates increased R & D investment, and the operating profit is likely to be low due to the high debt ratio, thereby negatively impacting the enterprise value. This study further investigates whether the existing researches are based on researches that identify the total value of R & D expenditure. Results determine a significant relationship between enterprise value and R & D expenditure.

• Journal of Technology Innovation
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• v.31 no.2
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• pp.59-82
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• 2023

The purpose of this research is to conduct the empirical analysis of the short- and long-term causal relationship between public R&D investment, corporate R&D investment, and university R&D investment on economic growth in Korea. To this end, based on the time series data from 1976 to 2020, a causality test was conducted through the unit root test, cointegration test, and vector error correction model (VECM). As a result, it was found that there is a long-run equilibrium relationship between economic growth in Korea, public R&D investment, corporate R&D investment, and university R&D investment, in which a causal relationship exists in the long run. Also, while public R&D investment has a short-term effect on economic growth, corporate and university R&D investment does not have a short-term effect on economic growth. In addition, the results shows that there is a bidirectional causal relationship between economic growth and public R&D investment, corporate R&D investment and public R&D investment, and university R&D investment and public R&D investment in the short term. Through this research, it was empirically found that a highly mutual relationship exists between public R&D investment, corporate R&D investment, university R&D investment and economic growth. In order to increase the ripple effect of R&D investment on economic growth in the future, R&D investment between universities and corporations should be mutually promoted, and R&D investment by corporations should have a positive effect on public R&D investment so that public R&D investment can contribute to future economic growth.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.12 no.7
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• pp.3053-3061
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• 2011

This study examines the relationship between R&D(research & development) investment and market value among KOSDAQ firms in the Korea Stock Exchange. We investigate the effect of R&D investment on firm value in both total sample and sub-samples classified by firm characteristics based on types of firms. And we study the impact of a major economic disruption as the global financial crisis triggered by sub-prime mortgage problem in the US on R&D investment relative to the firm value. We find that R&D investment positively affects firm value and the squared term of R&D investment is found to be significant and negatively correlated with market value. This suggests the presence of nonlinear relationship like a reverse U-shape between R&D investment and market value in total sample and most of sub-samples. And we find firm characteristics and global financial crisis partially affect the contribution of R&D investment to market value in some of sub-samples.

• International Area Studies Review
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• v.12 no.2
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• pp.149-173
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• 2008

This paper empirically studies the relationship between R&D expenditures and firms value. First, we can conjecture that R&D expenditures are enhancing the firms value. Such findings depend on an existing research, which R&D expenditures are intangible asset rather than expenses. Although, under U.S. accounting standards, financial statements do not report intangible assets but costs. Second, we can conjecture that short-term, the rate of increase in R&D expenditures had negative influence on firms valuation, because such findings indicates that R&D spending of costs incur mis-pricing. But long-term, consistently R&D expenditures may attract investors on the stock market. Third, lately firms focus on capital efficiency management, such a firms R&D expenditures incur high ROE. Generally investors put too much confidence in capital efficiency management and high ROE may attract investors on the stock market. Finally, High-Tech through the R&D investment improve firms competitive advantage, by competitive advantage, firms have reduced cost and raised productivity in the end improve firms value.

• International Area Studies Review
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• v.21 no.1
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• pp.25-57
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• 2017

In this study, we analyzed the information asymmetry and the agency problem in major affiliated companies on the basis of the R&D investment. As a result of comparing how the R&D investment effects on major affiliated companies and the independent companies, even the achievement of R&D investment effects in a positive way to the firm value, the positive effect appears much lower on major affiliated companies comparing independent companies. In order to analyze the case, we investigated in a separate way according to the shareholding ratio and the affiliated market using the sample of the independent company and the group affiliated company. As a result of such analysis, the cause of this comes from the agency problem in major affiliated company, not the asymmetry information of affiliated company. After we analyzed the sample of the research depending on the affiliation market, we could observe there is a little impact of the asymmetry information in the outcome of the R&D investment of the major affiliated companies. In contrast, the companies which rated lower in the ratio of the shareholding appears much less in the positive effect of R&D investment compared to the companies which rated at a higher level. This phenomenon was also consistently observed when changing the research method or further subdividing the sample of companies belonging to the group based on the ownership share of major shareholders.

• Management & Information Systems Review
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• v.32 no.1
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• pp.1-18
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• 2013

Previous studies related with the relationship between R&D and innovation have focused on the role of R&D on innovation, and the empirical results have been not consistent. Although government policy supports have been considered a crucial factor to make innovation, it is true that there are little studies investigating the moderating effects of government policy supports on the relationship between R&D and innovation. The studies related with government policy supports mainly examined the direct effects of government policy supports on innovation. Using 2008 innovation activity table from STEPI, this study investigated the effect of R&D on innovation and the moderating effects of government policy support on the relationship between R&D and innovation. The data used in this study contains 532 Korean small and medium sized firms and information was collected over 3 years(2006-2008). The empirical results reports that R&D positively influences innovation and the moderating effects of government policy on the relationship is statistically significant. Therefore, This study suggests that R&D is required to firms for innovation and government policy supports are needed for connecting the R&D and innovation.

• 한국벤처창업학회:학술대회논문집
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• 2007.04a
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• pp.101-122
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• 2007

In this study, as the result of analyzing the relationship and influence between economic outcome and R&D supporting investment, the number of supporting subjects among the technological innovational areas of SMEs, it is as below. First, as the economic result of analyzing companies from the investment in R&D of technological innovational areas of minor companies, the number of supporting subjects and amount of R&D have relationship with increase of sales and export amount, employee reduction & the effect of new job creation shows positive correlation with the effect of import replacement. Second, as analyzing the influence of the investment in R&D has economic effect from of technological innovational minor companies. This is thought that the financial and R&D support increase a significant effect on economical, technical against SMEs.

• Journal of Technology Innovation
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• v.22 no.1
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• pp.1-22
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• 2014

R&D investment also has a gestation period similar to other investments in economics. The gestation period originates from time lag effect of input and output. Thus it is necessary to consider time lag effects when analyzing the relationship between firms' R&D investment and R&D performance. The main objective of this research is to estimate the length of time lag effect of R&D investment. The Almon distribution lag model was applied to estimate the time lag effect. The firm level panel dataset was established from 2002 to 2009. The net value of R&D investment and the number of patent applications were used to measure R&D input and output, respectively. This method found the estimated time lag to be 1~2 years across all datasets. The same analyses were applied to chemical, metal, electronic, exact science, and machinery industries' data. And we found there were differences among sectors in regard to the time lag effect.

• Journal of Technology Innovation
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• v.17 no.1
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• pp.179-204
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• 2009

This paper aims to analyze the relationship between R&D outsourcing ratio (external R&D expenditures out of total R&D expenditures) and firm characteristics. Four hypotheses are tested using firm-level data with Tobit regression method. The major findings of this paper are as follows. First, firms with high technological capabilities, which are measured by R&D expenditures per sale and the number of patents per employee, rely more on R&D outsourcing. Nonetheless, firms that own R&D centers tend to rely less on external outsourcing of R&D. Second, firms with high managerial innovation capabilities, which is measured by the introduction of IT solutions, show higher R&D outsourcing ratio. Third, bigger firms are likely to spend more in external R&D than in internal R&D. This paper also discusses implications on R&D policy of Korea.