• Journal of Korea Technology Innovation Society
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• v.9 no.2
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• pp.236-259
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• 2006

This paper empirically examines the relationship between a firm's external technology acquisition and in-house R&D in Korean manufacturing sectors. Using the technology innovation survey conducted by the Korean government in 2002, and developing a semi-structural empirical model, we find that the firm's in-house R&D and technology acquisition have a complementary relationship: A firm's technology acquisition increases in its in-house R&D. Moreover, government R&D funding and tax incentives have positive effects on the in-house R&D, while the existence of the failed projects encourage a firm to acquire more external technologies.