• Asia Marketing Journal
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• v.15 no.3
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• pp.79-95
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• 2013

New product innovation is a process of embodying new knowledge in a product and technology licensing is getting popular as a means to innovations and introduction of new product to the market in today's competitive global market environment. Incumbents often rely on technology licensing to access new product opportunities created by other firms. Prior research has examined various aspects of technology licensing agreements such as specific contract terms of licensing agreements, e.g., distribution of control rights, exclusivity of licensing agreements, cross-licensing, and the scope of licensing agreements. This study aims to provide answers to an important, but under-researched question: why do some incumbents initiate more licensing agreement for exploratory learning while others do it for exploitative learning along the innovation process? We attempt to extend our knowledge of licensing agreements from an organizational learning perspective. Technology licensing as a specific form of interfirm linkages can be initiated with different learning objectives along the process of new product innovation. The exploratory stages of the innovation process such as discovery or research stages involve extensive searches to create new knowledge or capabilities, whereas the exploitative stages of the innovation process such as application or test stages near the commercialization are more focused on developing specific applications or improving their efficiency or reliability. Thus, different stages of the innovation process generate different types of learning and the resulting technological resources. We examine when incumbents as licensees initiate more licensing agreements for exploratory learning objectives and when more for exploitative learning objectives, focusing on two factors that may influence a firm's formation of exploratory and exploitative licensing agreements: 1) its past radical and incremental innovation experience and 2) its internal investments in R&D and marketing. We develop and test our hypotheses regarding the relationship between a firm's radical and incremental new product experience, R&D investment intensity and marketing investment intensity, and the likelihood of engaging in exploratory and exploitive licensing agreements. Using data collected from various secondary sources (Recap database, Compustat database, and FDA website), we analyzed technology licensing agreements initiated in the biotechnology and pharmaceutical industries from 1988 to 2011. The results of this study show that incumbents initiate exploratory rather than exploitative licensing agreements when they have more radical innovation experience and when they invest in R&D activities more intensively; in contrast, they initiate exploitative rather than exploratory licensing agreements when they have more incremental innovation experience and when they invest in marketing activities more intensively. The findings of this study contribute to the licensing and interfirm cooperation studies. First, this study lays a foundation to understand the organizational learning aspect of technology licensing agreements. Second, this study sheds lights on how a firm's internal investments in R&D and marketing are linked to its tendency to initiate licensing agreements along the innovation process. Finally, the findings of this study provide important insight to managers regarding which technologies to gain via licensing agreements. This study suggests that firms need to consider their internal investments in R&D and marketing as well as their past innovation experiences when they initiate licensing agreements along the process of new product innovation.

• Journal of Korean Society of Transportation
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• v.35 no.4
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• pp.360-373
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• 2017

The BTO-a projects is the types, which has a demand risk among the type of PPP projects in Korea. When demand risk is realized, private investor encounters financial difficulties due to lower revenue than its expectation and the government may also have a problem in stable infrastructure operation. In this regards, the government has applied various risk sharing policies in response to demand risk. However, the amount of government's risk sharing is the government's contingent liabilities as a result of demand uncertainty, and it fails to be quantified by the conventional NPV method of expressing in the text of the concession agreement. The purpose of this study is to estimate the value of investment risk sharing by the government considering the demand risk in the profit sharing system (BTO-a) introduced in 2015 as one of the demand risk sharing policy. The investment risk sharing will take the form of options in finance. Private investors have the right to claim subsidies from the government when their revenue declines, while the government has the obligation to pay subsidies under certain conditions. In this study, we have established a methodology for estimating the value of investment risk sharing by using the Black - Scholes option pricing model and examined the appropriateness of the results through case studies. As a result of the analysis, the value of investment risk sharing is estimated to be 12 billion won, which is about 4% of the investment cost of the private investment. In other words, it can be seen that the government will invest 12 billion won in financial support by sharing the investment risk. The option value when assuming the traffic volume risk as a random variable from the case studies is derived as an average of 12.2 billion won and a standard deviation of 3.67 billion won. As a result of the cumulative distribution, the option value of the 90% probability interval will be determined within the range of 6.9 to 18.8 billion won. The method proposed in this study is expected to help government and private investors understand the better risk analysis and economic value of better for investment risk sharing under the uncertainty of future demand.

• Journal of Arbitration Studies
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• v.27 no.2
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• pp.3-18
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• 2017

International legal reviews on ISD, a procedure for resolving disputes under the Korea-US FTA, are examined from the perspective of law. If the ISD system does not exist, even if the investor suffers damage due to the illegal act of the host country, he or she must file a lawsuit through the court of the host country, which is unreasonable from the investor's point of view and makes it difficult to guarantee fairness and transparency. Some of the Koreans pointed out that there are some problems with the KORUS FTA dispute settlement regulations, and that the United States federal courts are taking a friendly attitude to the decisions made by the US Customs in determining the dispute by the KORUS FTA Agreement and the US Customs Act. In cases where the State does not violate international law but results in harmful consequences, the responsibility of one country is borne by the treaty. Foreign investment always comes with many challenges and risks. Therefore, the ISD system is a fair and universal arbitration system, which is considered to be a necessary system even for protecting the Korean companies investing abroad. In the investment treaty, compensation for the nationalization of foreign property and reimbursement under the laws of the host country were dissatisfied with foreign investors. In particular, some Koreans have pointed out that there are some problems in the KORUS FTA dispute resolution regulations and there is a need for further discussion and research. Based on the experiences and wisdoms gained in the course of Korea-US FTA negotiations, the dispute arbitration mechanism is urgently needed to reduce the possibility of disputes and to make amicable directions.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• 2004.11a
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• pp.486-489
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• 2004

To enlarge the international competition and construction productivity, the domestic construction market attracts the private capital and expands the facility of :iocial Overhead Capital(SOC). However, the application of the business system used at the public project didn't utilize the effect of social overhead capital. It caused problems that parties' business was inefficient and their allotment of the risk was inadequate. This paper presents the course to reorganize the business system which the coincides with the origin aim of the SOC. For the reformation of the supervisor's work scope and business system and the government's overall project management, in other words, this paper proposes the professional organization to replace the superintendence and the formation of optimal business system. This paper confirms the privity of contract among parties of SOC project and parties' work scope and system between relative laws and concession agreement that government made a contract with Special purpose Company (SPC).

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.18
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• pp.159-188
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• 2002

International joint ventures are usually formed and managed by domestic companies and foreign investors for the common objectives. They offer an opportunity for each partner to benefit significantly from the comparative advantages of the other. Local partners bring knowledge of the domestic market; familiarity with government bureaucracies and regulations; understanding of local labor markets; and existing manufacturing facilities. Foreign partners can offer advanced process and product technologies, management know-how, and access to export markets. In Korea, joint ventures have been encouraged to usher in foreign investors with foreign currency capital badly needed during the IMF financial crisis. In the meantime, Korean laws and regulations with respect to joint ventures have been largely overhauled to promote foreign direct investment (FDI) both inbound and outbound. They include four types of FDI, i.e., acquisition of foreign stocks, provision of long-term loans, participation in joint operations like resources development, and establishment of foreign offices. From the legal point of view, the formal joint venture agreement must be an offspring of a series of tough negotiations between domestic and foreign partners. They usually stress the long-term relationship with the good will and dedication to each other, and restrict the free transfer of stocks. Both partners are earnestly interested in the ownership and management of the joint venture. So they keep a close eye on the articles of incorporation, changes of business environment, conflict resolution methods, transparency of accounting and other financial matters. When a multinational corporation (MNC) is involved in the joint venture, conflicts over management strategies, marketing and other issues take place more often than not between the MNC and local partners. We have to pay attention to joint ventures, particularly, in China and North Korea. As witnessed in other transition economies, China is eagerly bringing in foreign direct investments for the development of nation's economy. China encourages foreign investors to establish ordinary joint ventures, contractual joint ventures, solely invested foreign capital companies and jointly operated development companies with local partners. In North Korea, however, joint ventures have a different meaning like contractual joint ventures in China, in which North Korean partners have an initiative in the management. Rather, jointly operated companies or simply processing-for-wage companies are recommended in view of the unpredictable legal infrastructure in North Korea.

• Korea Trade Review
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• v.41 no.5
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• pp.89-111
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• 2016

The Mega-FTA is intended for emerging economies, including developed economies, to expand economies of scale in a single market. The Bilateral FTA shall take into account the relevant industries and the inter-country related industries to adjust the origin standard and preferential tariff rates. Therefore, certain competitive industries can expect foreign investment and re-investment in the domestic market as well as expansion of the market in the region. However, the mega-FTA should expand the size of the economy under the same preferential tax rates for many Partner countries. The Mega-FTA can maximize the effectiveness of the agreement by making use of the competitive advantages of the participating countries. In the mega-FTA, Cumulative Criteria should be appropriately used as a supplemental standard of origin. The Cumulative Criteria is an important FTA utilization factor that determines the success of the mega-FTA. Using FTA, Korea should export locally produced materials using cheaper labor force in FTA partner country. In addition, in order to prepare the Mega-FTA, which allows full cumulation, it is necessary to encourage the overseas transfer of low-cost structure materials processing industry so that the material suppliers can be transferred to the area where production cost is lower and raw material supply is easier.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.17 no.1
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• pp.29-43
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• 2022

This study measures the realized rate of return of venture capital(VC) fund at the level of investment agreement(as opposed to fund level returns reported by most of the relevant studies). It also measures the stock price return of the VC's portfolio firms (unlisted start-ups) at firm level(as opposed to fund returns) and its variance for the first time using unique data of the VC funds held by the Korean Venture Capital Association. Results of the analysis confirm that VC fund returns exceed individual stock price returns. Additionally, it is confirmed that VC portfolio firms exhibit a positive relationship between risk and return measured by total risk. Finally, we find that stock price returns at firm level are lower than that implied by the associated levels of risk. Consequently, this may make individual investors hesitate to directly buy unlisted startups' stocks even when investment in individual startup companies guarantees high risk-high returns relationship.

• Strategy21
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• s.42
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• pp.224-257
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• 2017

As the Trump administration withdraws the Paris Climate Agreement and shows its antipathy toward free trade, the U.S.'s soft power is most likely to weaken and its behaviors could be perceived as acts to surrender the U.S. hegemonic leadership in the world stage. Hegemonic stability theory notes that the existence of a hegemonic power contributes to international stability in the sense that it provides international public goods. A lack of the U.S's leadership in international politics, however, could be recognized as its denial of a hegemonic status. Is it intentional or accidental? The U.S's denial of hegemonic roles is the byproduct of the Trump administration's "American First" policy, not the showcase of its intention to transit hegemony to others. What is noteworthy is that China targets a niche market of hegemony as the U.S. denies its roles as the international leader. Put it another way, China attempts to ride hegemony for free when the U.S. denies its hegemonic roles accidentally. Faced with a niche market of hegemony, China has begun to accelerate its national strategy to make "Chinese Dream" come true. To that end, China promised again to keep the Paris Climate Agreement and attempts to play more active its roles in Shanghai Cooperation Organization(SCO), Asia Infra Investment Bank(AIIB), and "One Belt, One Road". Despite all these efforts, the U.S. is most likely to withdraw its denial of hegemony any time soon. The U.S's resumption of Freedom of Navigation Operations(FONOPs) could be a precursor of the return to a hegemonic power's willingness. In this vein, it is noteworthy that the South China Sea serves as a quasi-war zone for hegemonic conflict.

• Journal of Applied Tourism Food and Beverage Management and Research
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• v.17 no.1
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• pp.41-67
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• 2006

The study is aimed to analyze the influence of FTA(Free Trade Agreement) between Korea and Japan on tourism and to suggest ways to increase tourists exchange between them by considering countermeasures of Korea's tourism based on the analysis and deriving political significance. The results of the study showed that the expected effects of FTA between Korea and Japan on tourism would overall be positive. There would be increases in employment and a higher rate of foreign-exchange earning, which plays a critical role in the cash flow. Therefore the government is required to prepare for several political measures as follows. First, ways to promote investment in tourism have to be established in a systematic way for FTA. Second, restructuring of tourism has to be considered seriously for tourism to be a high value-added industry after FTA. Third, the tourism information industry needs to be included in the tourism promotion act to promote e-tourism using information technology. In addition to this, an expansive cluster strategy needs to be developed, which relates tourism to other industries like culture and movies and to find ways to re-locate and re-educate manpower currently engaged in the tourism industry. Though the study investigated the influence of FTA on tourism through a practical analysis, it was restricted only to Korea. So the influence of FTA between Korea and Japan on the tourism of Japan should be included in further study. Furthermore, in subsequent studies the CGE(Computable General Equilibrium) model will be applied for objective analysis of the effects. Or measuring the ripple effect with multinational inter-industry relation table will be made for the study to make practical contributions to the development of government policy.

• KSCE Journal of Civil and Environmental Engineering Research
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• v.31 no.1D
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• pp.99-109
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• 2011

In order to maintain construction industry and to improve efficiency, the Korean government legislated private investment system. Private sector takes advantages by adopting CM (Construction Management) project system, however, public sector has relatively less capability and experience than private sector. In this paper, PSM (Partnership Support Management) is addressed in order to actively strengthen the project capabilities for public sector. PSM maintains existing CM project system because it is a concept of expended business model of CM. PSM needed to categorize the private participated project into 5 phases; project development phase, project announcement phase, project evaluation phase, project agreement phase and agreement changing phase. PSM business structure and business process considering stakeholder's interrelationship and participation are suggested in this research. Suggested PSM business model may not only increase a comprehensive understanding of government and project capability, but also may reduce work load and responsibilities for project momentum of private participation in infrastructure.