• Health Policy and Management
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• v.28 no.4
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• pp.327-328
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• 2018

The quality of healthcare in Korea is very good, especially in life threatening disease. However, the level of healthcare research in Korea is not good relative to that of engineering. International university rankings also were showed that engineering was generally higher ranking than medicine. The reason of this phenomenon was deeply related to expenditure on research and development (R&D). Although Korea had a lot of gross domestic expenditure on R&D (GERD), 75% of GERD was from business enterprise that was related to engineering. Healthcare expenditure of R&D from business enterprise is small. Healthcare expenditure from government budget allocation on R&D (GBARD) was smaller than engineering. Higher education expenditure on R&D of GERD was also small and the quantity and quality of researcher in higher education was not enough. For Korea's healthcare to become the growth engine for future, GBARD should be invested heavily in the healthcare, a large part of the increased GBARD must be invested in higher education, and the higher education should invest to secure the higher quality researcher stably.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.413-421
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• 2021

Government expenditure on education has attracted much attention because it plays an important role in the economic development. The question is whether government expenditure on education has a positive or negative impact on the economic growth and vice versa. This study aims to provide reliable estimates of the relationship between government expenditure on education and economic growth with empirical evidence in Vietnam for the period 2006-2019. The data was taken from the official statistics of the General Statistics Office of Vietnam. The authors have used the VAR model and Granger causal model to determine the relationship between government expenditure on education and the economic growth. Research results show that there is a two-way nexus between the economic growth and government spending on education with a lag of about two years. From the results obtained from this research, the authors have made some policy suggestions for the Vietnamese government as how to increase investment for education. If there is a one-way causal relationship between expenditure on education and the economic growth, the government can use spending as a growth factor. However, if there is a bi-directional relationship between the government expenditure on education and the GDP growth, the government needs to ensure that resources are appropriately managed and allocated effectively to promote growth.

• Asian Journal of Business Environment
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• v.9 no.4
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• pp.5-13
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• 2019

Purpose - This research is aimed to investigate the impact of the Information and Communication Technology (hereinafter ICT) development index and ICT investment on Indonesian economic growth. Research design, data and methodology - The data used consist of ICT development index, government expenditure on ICT sector, and economic growth from 33 provinces in Indonesia from 2012 to 2015. Based on the Networked Readiness Index published by the World Economic Forum (WEF), Indonesia was ranked 80^th among 142 countries in 2012 and had climbed 64^th in 2014. This indicates that the businesses in Indonesia have adopted ICTs to increase productivity and expand their activities. Panel data regression analysis is performed to reveal the change of the impact over time in each of the provinces. Result - The ICT development index and government expenditure for ICT have a positive effect on the economic growth of all provinces, although the impact is different in each of the provinces. There is a digital gap between the provinces, especially the large digital gap occurring with DKI Jakarta. The provinces of Eastern Indonesia such as NTT and Papua are still relatively slow in development of ICT. Conclusions - ICT development index and allocation of local government expenditure for ICT have significant effect on economic growth. ICT development index has a bigger role in increasing economic growth.

• Knowledge Management Research
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• v.11 no.3
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• pp.1-11
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• 2010

The importance of intangible assets have increased unprecedentedly with the advent of the knowledge-based society. Investment in R&D has contributed to the rise of productivity and firm-value in the capital markets. but it is very difficult to determine the economic benefits of R&D investment, due to elusive link between time requirements and the realization of firm value from R&D investment. This study examines the differential effects of R&D expenditure and patents on firm-value by industry. Patents are intangible, proprietary rights that develops new products, plays a crucial role in market competition and results in research and development activities. If firms get patents, their R&D expenditure is assumed to be successful. The study analyzes whether successful R&D expenditure has a significant effect on the firm-value. The study considers two industries : high-tech industries and low-tech industries. These industries are expected to have different effect on R&D expenditure and firm-vale. The results of the study indicate that the successful R&D expenditure increased the firm-value. Successful R&D expenditure in high-tech industries more increased the firm-value more than that in low-tech industries.

• Asia Pacific Journal of Business Review
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• v.1 no.2
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• pp.37-62
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• 2017

To analyze the effects of R&D expenditure on the firm value of Korean firms, we classified portfolios based on R&D activity levels. After that, we conducted a time-series analysis to assess excess returns from the portfolios. To carry out such an analysis, an empirical analysis of excess returns in the capital market was performed by using the monthly earning rate of stocks from 2000 to 2013. The purpose of this research is to provide basic data on investment to stakeholders in the capital market by analyzing the effects of R&D on the firm value and to overcome scholarly limitations by offering a new model of analysis. The criteria for classifying the portfolios were based on R&D expenditure levels. The analysis models follow the Fama-French Three-Factor Model and the Carhart Four-Factor Model. The analyses results are as follows. Extrapolating monthly profit rates based on R&D expenditure levels, portfolios with low R&D expenditures showed higher earning rates than those with high R&D expenditures. This suggests that high R&D expenditures did not translate into high earning rates. The investor depreciates the R&D expenditures related profitability and the possibility of success in the market, leading to falls in stock prices and a failure to give a positive effect on the firm value. Our research differs from the previous investigations as we carried out an empirical analysis based on the actual investors' attitudes about R&D expenditures and how these can generate excess earnings. Our research results show that the data related to R&D expenditure are not reflected fully in the market.

• Journal of the military operations research society of Korea
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• v.36 no.1
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• pp.1-13
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• 2010

Defense expenditure is the investment for national defense capabilities acquisitions based on the national competitiveness, and includes research and development budgets more than some fixed ratio. So we need to guarantee the defense research and development budgets for National Defense Reform 2020 to posture that correspond to the future warfare, to acquire advanced weapon systems and critical technologies effectively. Especially advancement of the defense technology capabilities for future warfare is one of the issues that we are faced, and it needs to be researched and interested continuously. In this paper, we analysed 16 nation`s defense expenditures growth patterns and defense S&T indices, and proposed the needs of the guaranteed funding at the fixed ratio for defense S&T development.

• Knowledge Management Research
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• v.12 no.3
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• pp.59-71
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• 2011

This study intends to examine the effect of research and development (R&D) expenditure effects on firm value through patent and earing persistence. The patent is the representative intangible asset which objectively indicates a typical product of research and development activities to external parties. If a firm has acquired the patent, it receives amicable evaluation from the market compared to the firm which has not acquired patent. Empirical analysis is performed for non-banking firms (1,860 firm-years) listed on Korean Stock Exchange with December fiscal year-end over 2004-2009. Research results are as follows. First, the multiple pricing of patent acquiring firm and earing persistence increased group showed that they have higher prices than the other groups. Second, the multiple pricing of R&D expenditures of earing persistence increased group showed that they have higher prices than the other group. Third, the R&D expenditures of earing persistence increased group is receiving more friendly evaluation from the stock market than the other group.

• International Commerce and Information Review
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• v.16 no.4
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• pp.363-384
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• 2014

The adequate measurement of government expenditure efficiency for Energy Technology Development is a difficult empirical issue and the literature on it, particularly when it comes to aggregate and international data. Contribution in this study is threefold: first this study analyze the adequate measurement of government expenditure efficiency on Energy Technology sector of 24 OECD countries and korea. Second this study reconstruct efficiency composite indicators, named "Energy Technology Development Interest level indicator". Third this study assesses the efficiency of government expenditure for Energy Technology Development. The results can be summarized as follow: Korea's government expenditure efficiency for Energy Technology Development is highly ranked among 25 OECD countries based on Energy Technology Development R&D Budgets and Energy Technology Development R&D Budgets per thousand units of GDP indicators. However, Korea's ranking has fallen to 20th. The assessment suggests that government will be have to provide more government expenditure to enhance the efficiency on Energy.

• Korea Trade Review
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• v.44 no.3
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• pp.15-24
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• 2019

The study conducted an empirical analysis of the impact of FDI on economic growth in four Asian countries: China, India, Vietnam and Korea. With panel data for the 1990-2017 period, the research model was developed for foreign direct investment (FDI), export amount (EX), government expenditure (G), exchange rate (EXR), and labourable population (L). The panel analysis results show that the increase in FDI, exports, government expenditure, labourable population significantly increased economic growth. The comparison analysis for each country revealed that FDI, exports and government expenditure significantly affect economic growth in China, that exports and government expenditure significantly affect economic growth in Korea, that FDI significantly affected economic growth in Vietnam, and that the increase in the workforce contributed to economic development in India. This paper characterized the different factors of economic growth in the four Asian countries. These results suggest that setting economic priorities to suit the specific economic conditions of each country is a shortcut to more efficient economic growth.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.6
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• pp.379-385
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• 2020

The effect of research and development (R&D) expenditure on firm output is an interesting topic, but hardly explored in developing countries due to the unavailability of data. This study investigates this topic in the context of Vietnam by utilizing a novel dataset of 343 firms listed on the Vietnam Stock Exchange in the 2010-2018 period. The effect of R&D expenditure is examined under the production function framework. In order to obtain the robustness of the quantitative results, we estimate the production function with two coherent techniques including the OLS and 2-SLS. An instrumental variable regression technique is adopted to avoid the endogeneity problem between R&D expenditure and other variables. In our empirical analysis, we find that R&D expenditure has a positive and significant impact on output growth. The finding is robust in both OLS and 2-SLS frameworks. Besides, the output elasticity to R&D expenditure of our result is much higher than the estimated elasticity of other countries. The results imply that a 1% increase in R&D expenditure in Vietnam will help to expand the output more than a 1% increase in R&D investment in other countries. The findings from our paper provide important implications for firm managers, investors, and policymakers in Vietnam.