• International Commerce and Information Review
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• v.16 no.5
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• pp.51-66
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• 2014

The relationship study between SMEs' R&D and business performance is important research subject. The objective of this paper is to evaluate whether the effectiveness of government's R&D subsidy for SMEs is supported. The positive perspective is that the support policy stimulates the SMEs innovation activities including R&D and thus contributes to the performance, but the negative view is that the support policy rather decreases the firm's own R&D investment and thus the result is not necessarily promising. This paper is to evaluate the effectiveness of government subsidy on SMEs' R&D. This study suggested DID and Random Effect Models for analysis using the panel data of 2,807 SMEs in manufacturing sector. The data was collected from the 'Survey on SMEs Technology & R&D 2011' conducted by Korea Federation of Small and Medium Business. The results are as follows. First, government's subsidy has crowded out 4.7% of beneficiary's internal R&D investment. Second, government's subsidy has increased 27.3% of beneficiary's R&D intensity in spite of 4.7% internal R&D investment reduction. Third, government's subsidy didn't have a relationship with firm performance but the R&D intensity made positive influence on the firm performance. Finally, R&D intensity has increased the 6.7% of firm performance. These results mean that government's subsidy give a positive impact on SMEs' performance through R&D intensity with relatively small crowding-out effect.

• Journal of Technology Innovation
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• v.21 no.3
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• pp.73-94
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• 2013

The prinary cause of the decreasing SME's competitiveness in technology is the intensifying human resource shortages. The government supports a part of labor costs for SMEs as a means of policy. There are two ways of supporting labor costs for R&D personnel. One is to hire R&D personnel first then support their partial labor costs. The other is to support labor costs first for R&D personnel in national R&D programs then hire R&D personnel. This study analyzes the effectiveness of two different ways by classifying sales, no. of employees, R&D expenditure, no. of researchers, and no. of MA/Ph.D. researchers. In terms of employing researchers with MA or Ph.D., the effectiveness on employment subsidy is significantly higher than that of R&D subsidy. Its effect has been relatively high in non-metropolitan areas and manufacturing industry.

• Journal of The Institute of Information and Telecommunication Facilities Engineering
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• v.2 no.2
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• pp.14-21
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• 2003

In 1997, Korean IT enterprises were 9,000 in numbers and Gross Domestic Product (GDP) took 8.6%, and IT industry employed 400,000 persons. In 2002, it has increased : 21,000 companies, 14.9% of GDP, and 500,000 employees. National policy have diverse programs to the IT industry sector. Ministry of (MOC or MIC) have invested the R&D Program since late 1980. National subsidizes have been provided directly or indirectly to the programs. Direct subsidizes policy conflicts to the principle of the free competition market but it's very powerful to the IT organization (such as institutes, colleges, and companies) for the IT industry. This paper analyzes the national R&D subsidy systems and suggests the advanced systems.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2003.05a
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• pp.62-66
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• 2003

In 1998, Korea IT company operation 10,000 and Gross Domestic Product(GDP) was 9.3%, IT industry employee 380,000 persons. In 2001, growing the company 20,000, GDP 12.9％ and 500,000 employee. National policy have diverse programs to the IT sector. Ministry of communication(MOC or MIC) have invested by the R & D Program from later 1980'. National subsidizes direct or indirect to the programs, it's not market principal but subsidized to organization(Institute, college, company etc), this paper analysis the national subsidize system and suggestion the advanced system.