• Journal of Technology Innovation
• /
• v.24 no.2
• /
• pp.57-89
• /
• 2016

This paper used individual establishment level data to estimate the effects of government support for the research and development of 'small and medium enterprises'(SMEs). We analyzed, on the establishment level, the degree of technical advancement, strength of private R&D incentives, and the effect on employment levels of firms which participated in the 2010 government R&D support project. The results of this study are as follows. First, the size and frequency of government investment in the R&D of SMEs were both positively correlated with the amount of patent registrations. Furthermore, we found that the amount of patent registrations were positively correlated with the size of the establishments, but the average level of technological advancement for the firms running the research was lower than the average level of technological advancement for the firms merely participating in the project. Second, the government's R&D policy was found to be complementary to private R&D incentives, and a 1% increase in government R&D investment resulted in an inelastic increase (0.193~0.245%) of the firms' post-program R&D spending. Third, we found that R&D support from the government contributed to an increase of employment by the participating firms. Additionally, we found that the impact of R&D support on job creation varied for the firm size and technological characteristics. Therefore, it is important for governments to take into consideration each type of small business, when setting R&D policies.

• Journal of Service Research and Studies
• /
• v.13 no.1
• /
• pp.144-158
• /
• 2023

R&D (Research and Development) investment by companies and the government continues to increase, and the total R&D expenditure of public and private sectors in 2021 reached KRW 102 trillion, and the ratio of R&D investment to GDP was 4.96%. It ranks second in the world after Israel. This study analyzes the current status of the domestic R&D service industry and the research and development (R&D) innovation ecosystem based on the business activity survey data of the National Statistical Office in terms of improving R&D productivity of domestic R&D investment that has exceeded 100 trillion won, and analyzes the global R&D service industry and analyzes the global research service industry and R&D service Industry support government policy As a result of the analysis, in the domestic R&D ecosystem, the R&D outsourcing demand of service companies is rapidly increasing, compared to the stagnant R&D outsourcing demand of traditional manufacturing companies. In order to respond to these changing demands for technological innovation, this study suggests balanced support for R&D outsourcing for manufacturing and service companies, expansion of domestic R&D outsourcing, establishment of R&D outsourcing strategies specialized for the service industry, establishment of an open R&D ecosystem, and innovation in connection with materials/parts/equipment strategies.

• Journal of Technology Innovation
• /
• v.24 no.2
• /
• pp.91-113
• /
• 2016

The purpose of this study is to examine the causal relationship among R&D spending and variables of technology trade, and to explore promoting R&D activities and revitalizing technology trade. To analyze the causal relationship, we built a multivariate model that consists of government R&D spending, private R&D spending, technical importation and export of techniques, and employed the Granger-causality test based on an error correction model. The results show that there are five Granger-causality relationship among them in the short run, as well as there are eleven Granger-causality relationship among a total of twelve causal relationship, excluding only a unidirectional causality relationship from the government R&D spending to the export of techniques, in the long run. Besides, we attempted the impulse-response analysis on them to observe the reaction of any dynamic system in response to some external change. The significance of this paper is to make sure the causal relationship between R&D investments and the technology trade by analyzing empirically, and to suggest several implications for promoting the R&D activities and revitalizing the technology trade.

• Asia-Pacific Journal of Business
• /
• v.12 no.3
• /
• pp.281-294
• /
• 2021

Purpose - The purpose of this study was verifying the policy effects by field of innovative growth engines, focusing on the discussion of the relationship between government support and corporate R&D activities (substitute/complementary goods), and based on the results, policy recommendations for promoting private R&D were carried out. Design/methodology/approach - Through literature research, academic/theoretical discussions about relationship between government support and corporate R&D activities were synthesized. Next, survey data were collected for companies engaged in the field of innovative growth engines and empirical analysis was conducted on the relationship between government support and R&D activities in 13 major sectors. Findings - First, as a result of analyzing all companies regardless of sector, government R&D subsidies had a positive (+) relationship with R&D activities of companies engaged in innovative growth engines, that is, a complementary relationship. Next, as a result of performing empirical analysis by dividing the 13 fields, it was found that 9 fields were complementary goods in which government support had a positive (+) effect on the R&D activities of companies. On the other hand, in the remaining four fields, the effect of government support on corporate R&D activities was not statistically significant. Research implications or Originality - In order to promote R&D activities of companies in the 9 fields where government support acts as a complementary product, it is necessary to establish policies centered on direct government support. On the other hand, it would be more desirable to seek indirect support rather than direct support in the 4 fields where government support did not have a statistically significant effect on corporate R&D activities.

• Journal of the Korean Academic Society of Industrial Cluster
• /
• v.1 no.1
• /
• pp.16-28
• /
• 2007

This paper analyzes the effects of networking and competition on individual companies' R&D investment, focusing on pharmaceuticals, PCB (Printed Circuit Board), and auto parts sectors. Data were obtained through a survey on firms operating in Seoul, Incheon, and Gyung-gi metropolitan area. The estimation results suggest the networking with other actors in the clusters tends to increase R&D investments of individual firm's. But competition in a cluster tend to reduce individual firm's R&D investment. These results suggest the public policy promoting networking in a cluster could induce private firms' R&D investments and, therefore, should be maintained.

• Journal of Technology Innovation
• /
• v.12 no.3
• /
• pp.135-157
• /
• 2004

As the speed of technological changes increase with the investment requirements steadily expanding, private firms and government-funded research institutes experience similar pressures with respect to the necessity of risk reduction and technological alliances in R&D activities. This paper first attempts to review previous research in managing R&D projects with large, risky, and long-term investment requirements. Our primary focus is placed on the "fuzzy front-end" (FFE) projects with uncertainties at the investigation and planning stages. We analyze various elements that create FFE conditions, classify them into basic constructs, and suggest tools and methods to deal with FFE conditions. The findings suggest that both initial FFE conditions and the effectiveness of FFE management affect the performance of the project later on, and thus, especially for large projects, we must deal with FFE seriously in a comprehensive manner. We utilize in-depth panel interviews and case studies to approach the research questions.

• Journal of Korea Technology Innovation Society
• /
• v.21 no.1
• /
• pp.420-453
• /
• 2018

In the growth of the government's investment in national R&D project and the abuse of research expense, an effective control and management mechanism is strongly demanded. However, an excessive regulation might hinder the R&D performance, which also endangers the underlying objective of R&D policy. Especially, an excessive regulation on the R&D expenditure may damage the SMEs (Small and Medium sized Enterprises) where securing an adequate level of R&D funding is vital. This study investigates the R&D funding and R&D performance of SMEs participating in the national R&D project by using fixed effect panel model. As a result, this paper reveals the effectiveness of 'Government R&D subsidy'. However, that of 'private R&D fund' is not supported strongly. Also, this paper empirically demonstrates the efficiency of both 'Government R&D subsidy' and 'Private R&D fund' as the R&D costs are spent discretionarily (as the degree of 'Indirect Cost Ratio' increases). Especially, the effectiveness of 'Private R&D fund' can be moderated by 'Indirect Cost Ratio'. On the basis of the conclusions, this paper draws an implication that can increase R&D performance of SMEs through the interactions of manifold administrative values (i.e. effectiveness, efficiency and responsibility).

• Journal of the Korean Society of Industry Convergence
• /
• v.22 no.6
• /
• pp.729-737
• /
• 2019

The world is now going through the era of the Fourth Industrial Revolution. Major global economies, including the United States, Germany, Japan and China, are fostering industries related to the fourth industrial revolution with policies and investments. South Korea is also setting up its fourth industrial revolution committee under the president, expanding policies and investment to foster industries related to the fourth industrial revolution, and increasing investment in research and development. Accordingly, government and private investment in industries and technologies related to the Fourth Industrial Revolution is made extensively around the world, and many related industries and technologies are being developed. In this paper, we will look into the status and problems of Advanced Concept Technology Demonstration projects that can quickly and easily introduce technologies related to the fourth industrial revolution in the private sector where many developments are taking place, and present the direction of development.

• Journal of Korea Technology Innovation Society
• /
• v.18 no.1
• /
• pp.1-27
• /
• 2015

Korea has increased R&D investment continuously for the improvement of global technological competencies. Korea ranked first in the world with 4.15 percent in the ratio of R&D investment to GDP. In particular, the private sector occupies a crucial position of technological innovations in Korea, constituting 78.5% of total R&D investment. However, quantitative growth strategy is no longer effective, so efforts to enhance efficiency by upgrading qualitative level are badly needed. This paper studied methods for improving firms' business performance. For this, it tried to empirically verify technology strategy and technology planning capability's influence factors on the improvement of business performance. The study showed that technology strategy and technology planning activities have positive effects on the improvement of business performance. And it was revealed that coordination flexibility contributes to the enhancement of business performance by positively controlling technology planning activities. The study performed sample survey on the companies with R&D centers and multiple regression analysis and quantile regression were used for the analysis.

• Journal of Technology Innovation
• /
• v.24 no.4
• /
• pp.27-53
• /
• 2016

This case analyzed the efficiency of 79 R&D projects performed within one private research center in machine tools industry. DEA was used for efficiency analysis. Input variables were R&D investment expense and man-month. Output variables were achievement rate on target development period and expected net sales within 5-years. Samples are divided into product development, Prior technology development, and control technology development. The key result is that Prior technology showed the lowest efficiency because of high uncertainty. It was so difficult to determine its goals and to make its specific plans. With respect to scale, the proportions of CRS(constant returns to scale) were 34.6%, 14.3% and 38.9% for product development, prior technology, control technology respectively. As for IRS(increase returns to scale), they were 53.8%, 85.7% and 38.9% for product development, prior technology, control technology respectively. As for DRS(decrease returns to scale) they were 11.5%, 0% and 22.2% for product development, prior technology, control technology respectively. On the whole, in this case, insufficient input was more problematic than excessive input, which means the lack of investment in R&D. Prior technology can be the source of the future competitiveness of companies. To operate inefficient DMU efficiently, the optimal input should be managed and it is derived from comparison with the reference group.