• KDI Journal of Economic Policy
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• v.14 no.2
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• pp.77-108
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• 1992

Many economists and policymakers regard the ratio of R&D investment to GNP to be a good indicator of a nation's technological capabilities. Consequently, their major policy recommendation to promote technological development is a rapid expansion in R&D investment. However, a low R&D ratio does not necessarily mean less efforts at technological advancement since the composition of technologies to be developed varies depending upon the stage of economic development. Technology policy to improve the international competitiveness of domestic industries should be based on the stage of economic development and present technological status rather than on a simple comparison with advanced countries. At Korea's stage of development, maximizing the efficiency of R&D investment is more important than enlarging the size of the investment. Strategic alliances between domestic firms and foreign enterprises should be encouraged to save time and costs involved in acquiring new technologies and learning how to use them. The government should establish institutional devices to stimulate private enterprises to internationalize their business activities such as R&D, production, and marketing. The government should also promote the development of domestic and international R&D networks, which can serve as the infrastructure for technological innovations.

• Journal of Korea Society of Industrial Information Systems
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• v.29 no.2
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• pp.191-204
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• 2024

This study analyzes the effects of manufacturing firms' R&D investment on sales according to global political economic uncertainty. The variables in this research include the firm's R&D investment, sales, which serves as an indicator of the firm's performance, and the Global Economic Policy Uncertainty (GEPU) index, which reflects situations of global political economic uncertainty. Panel data analysis is conducted by using a total of 96 quarters of data spanning 24 years from 2000 to 2023 based on manufacturing firms in the Wharton Research Data Services' Compustat Database. We study the impact of firm's R&D investment on sales by considering the Global Economic Policy Uncertainty index, which was relatively underestimated in previous research, as moderating variable, and present a new direction for research by analyzing the time lag effect. We suggest effective R&D investment strategy for firms.

• International Commerce and Information Review
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• v.14 no.1
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• pp.171-195
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• 2012

This paper is aimed to prepare some policy-measures which is helpful for China Money FDI in Korea by analysing FDI-related data and political strength and weakness between the two countries and studying fundamental preconditions required for Korea's China Money FDI strategies. As the result of research, key preconditions found out can be summarized as follows; First, because China-Korea economic relationship is largely insufficient in a complementary view as well as in a cooperative state level, Korea should remove the threats in advance that could lead two countries to unlimited competition, and then expand to a relationship of trust between China and Korea. Second, Korea, at least from the perspective of China, may not be an attractive investment destination. Therefore, it is necessary to take advantage of Korea's FTA-expansion-strategy opportunities such as Korea-US FTA which has entered into force recently. Third, because China always has a lot of alternative investment opportunities among world instead of Korea, so Korea should not overlook the fact that China has the bargaining power in large part related on the investment conditions in Korea, such as investment field, investment size, how to invest China Money to Korea, etc. Fourth, if Korea's FDI policy is trapped in the existing rules of the political frame, and moreover Korea can not have the role of rule breaker, it will be difficult to expect Korea's China Money FDI results compared to those efforts. Fifth, if Korea will execute China Money FDI strategies in the context of overestimating the China Power or China Money, it should be noted that Korea may have unexpected losses lead to a national by reason of outward and quantitative investment or bad investment.

• Proceedings of the KSCN Conference
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• 2007.10a
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• pp.47-56
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• 2007

• Asian Journal of Innovation and Policy
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• v.6 no.2
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• pp.225-244
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• 2017

When evaluating the economic value of technology or business project, we need to consider the period and cost for commercialization. Since the discounted cash flow (DCF) method has limitations in that it can not consider consecutive investment or does not reflect the probabilistic property of commercialization cost, we often take it desirable to apply the concept of real options with key metrics of underlying asset value, commercialization cost, and volatility, while regarding the value of technology and investment as the opportunity value. We at this moment provide more elaborated real options model with the effective region of volatility, which reflects the uncertainty in the option pricing model (OPM).

• Asian Journal of Innovation and Policy
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• v.5 no.2
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• pp.129-145
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• 2016

This is a case study to analyze the role of technology licensing or transfer office (TLO) as factors of success for the spin-off from government research lab. The case company is a research lab startup, which is a joint venture through technology investment by a government research lab or university in the designated R&D parks and cash investment by the partner company. The case company listed on the stock market in 2015 reaching a market capitalization of US$ 1.2 billion. We confirm the success factors of startups pointed out in many studies: original technology, good understanding of core technology and production technology, technological competitiveness in the market. However, there is an important factor not well discussed in the previous studies, the role of TLO. TLO guided the company ownership, management, technology, and solved problems that pause business itself. The case became the sample of research lab startup and technology investment in Korea.

• KDI Journal of Economic Policy
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• v.34 no.2
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• pp.173-204
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• 2012

This study examines the equilibrium investment on the pollution abatement when firms are facing Cournot competition in the output market while the pollution permit market is perfectly competitive. Unlike standard perfect competition scenario, the abatement investment delivers an indirect effect in which it reduces other firms' equilibrium output. Consequently, compared with the socially optimal level, overinvestment arises. I also overview the potential inefficiencies that imperfect market structure induces under the emission trading scheme, presenting policy implications.

• KDI Journal of Economic Policy
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• v.44 no.3
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• pp.27-48
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• 2022

This paper reconsiders the empirical evidence of the relationship between tax treaties and FDI using U.S. outbound FDI to 78 countries over the period of 2007-2018. Unlike previous studies, we explicitly consider differences in the tax environments of recipient economies, including their tax-haven status, transfer pricing rules, CFC rules and anti-avoidance regulations, in our estimations. Our results confirm the importance of controlling for country-specific tax environments, especially the tax-haven status and transfer pricing rules. We find that tax treaties positively contribute to FDI inflows in developing countries, while they have no statistically significant impacts on OECD countries. Recently signed tax treaties still foster FDI but less than older ones do. Finally, our results indicate, all other things being equal, that the weaker the transfer pricing regulations, the greater the amount of U.S. direct investment into a non-OECD economy.

• Journal of Digital Convergence
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• v.10 no.6
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• pp.181-187
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• 2012

This study inquires into what effect the tax burden of investors, for typical taxes related to real estate investment; acquisition tax, comprehensive real estate holding tax, and transfer income tax, might have on the real estate investment behaviors; the purpose of long-term investment. These real estate investment behaviors have been analyzed to see how much they affect investment performance such as realized compound yield. This study model, which considers the fact that the choice of investment behavior for the degree of tax burden of investors may lead to different results in real estate investment, is expected to be an effective decision-making tool for investment.

• International Journal of Quality Innovation
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• v.9 no.2
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• pp.129-147
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• 2008

This research is to investigate the effect of the improvement of investment environments with investment incentive on Korean national economy by looking into the foreign investment support system in Korea. To this end, first research model was set up based on our literary study and case study was conducted on 150 foreign companies that were located in industrial complex for foreign companies, received the tax benefit and government subsidization. And it was found that even though the foreign companies were contributing to the national economy in general such as in the area of production, export, employment, development of technology, there was no significant contributory difference between the investment incentive beneficiary and non-beneficiary foreign companies. Therefore it deemed reasonable to reconsider the way Korean government supports foreign companies in Korea and to reinforce foreign companies' relevance to national policy agenda with additional incentives to foreign companies located in comparatively less developed areas. As a way to promote foreign investment, promotion of investment infra such as improvement of follow-up services, openness to foreign investment, industrial deregulations in capital area, revitalization of free economic zone, efficient system to promote foreign investment and the reinforcement of public relations were considered necessary, especially the upgrading of economic structure and the integrated management of domestic and foreign investors deemed necessary for the optimal distribution of the industries.