• Journal of Korea Technology Innovation Society
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• v.15 no.3
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• pp.649-674
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• 2012

The purpose of this study is to investigate the effects of public R&D subsidies on private R&D. We have analyzed rationales for the public R&D subsidy from different perspectives. On the basis of literature review, a two step research model is constructed: participation phase (when firms benefit from public subsidies) and decision phase (when firms make decision on additional R&D investments). Using propensity score matching(PSM) method, we compare the potential outcome of the treated group to a matched controlled group of non-subsidized firms. The data used in this paper was collected from various sources. The Korean Innovation Survey 2008(manufacturing sector) is a main source of data. Financial data such as revenue, asset and capital stock, and number of employees were supplemented from the Nice Information Service KIS Value database. The R&D survey, conducted by MEST(Ministry of Education, Science and Technology) each year, was also used for the R&D expenditures of the manufacturing firms. This study comes up with the following empirical results. First, a firm's innovation capability, financial constraints, and sector appear to influence the selection of firms who were benefited from government's financial supports for R&D. Second, empirical results show that public R&D funding complements private investment on average and appear to have perpetual effects on the following year. Finally, sectoral difference in the effect of public subsidies on firms' R&D investment was confirmed. In addition, SMEs show more positive effects than large firms.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.1
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• pp.153-164
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• 2014

This study is to investigate the effects of intangible assets such as research & development, education & training and advertisement on firm values of high-technology firms and low-technology firms listed in the KOSDAQ market, and to analyze the value-relativeness between the audit quality of companies and the expenditure of intangible assets. The substitute measurement of firm values is Tobin's Q model. The sample period for positive analysis is from 2003 to 2008, and the samples, excepting for financial business, are manufacturing companies of closing accounts corporate on December, based on companies of KOSDAQ that are listed in security. Finally, data from about 305 companies are used in this analysis. Followings are the results of the analysis. First, research & development, education & training of high-technology firms have an effect on firm values, and education & training of low-technology have an effect on firm values. Second, we find that audit quality(BIG4) increases the value relevance of R&D expenditures of high-technology firms and audit quality(BIG4) increases the value relevance of education & training expenditures of low-technology firms. This paper is meaningful in that it verified the value-relativeness of cost of intangible assets compared with high-technology firms to low-technology firms.

• Korean Management Science Review
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• v.34 no.3
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• pp.15-41
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• 2017

The purpose of this study is to analyze the effects of the BSCs of 642 firms excluding the financial and insurance companies listed on KOSPI. The analysis of financial performance through analysis of major financial ratios between BSC and non-BSC firms is compared with the input of human and material resources for business growth. We will promote the spread of BSC and examine the areas differentiated performance improvement. The analytical categories are manufacturing, service, wholesale and retail, and information and communications, which are 2,136 business years out of 2,378 final analytical samples. The results of the analysis are as follows. As a result of the analysis, among the four industries analyzed, the industries that showed the best performance were manufacturing. In the case of service industry, growth and activity were lower than those of non-adoption (NA) companies, but the operating margin was significantly different from manufacturing. However, market value was higher than that of NA companies, and R&D expenditures and advertising expenses were significantly higher than NA firms. On the other hand, there was no significant difference in profitability between the BSC and NA firms, but the market value was very significant. EPS is 5.22 times, BPS is 5.64 times, PBR is 1.3 times, and EVA is 35 times higher. In addition, R&D expenditure and advertising expenditure are more than twice as high as those of NA. In the case of the service industry, there is no significant difference in the growth performance from the NA firms. Activity indicators, BSC introduced companies are three times lower than both the total assets turnover and the capital turnover rate. The operating profit margin was high at 45.8% for introduced companies and 37.2% for non-introduced companies. In market value analysis, only BPS was 1.68 times higher. On the other hand, investment in welfare expenses is 0.2% of total assets, which is relatively low compared to NA firms. However, research and development expenses and advertising expenses are 2.1% and 1.02% of total assets, respectively, but they are relatively lower than those of NA firms. Unlike the manufacturing and service industries, wholesale and retail trade was significantly higher than the NA firms in terms of sales growth and total assets growth rate. In terms of market value, EPS and BPS were significantly higher, but the benefits, R&D expenditures, and advertising expenses were lower than those of NA firms. The information and communication industry showed lower level of performance than the NA firms in all indicators except cash liquidity, BPS, and EVA.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.4
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• pp.446-453
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• 2018

The study examines corporate research & development (R&D) expenditure in modern finance. Firms may face one of the essential issues to maintain their optimal levels of R&D expenditures in order to increase corporate profit. Accordingly, financial determinants that may influence R&D spending are statistically tested for firms listed on the KOSPI stock market during the period from 2010 to 2015. Financial determinants which may discriminate between firms in high-growth and low-growth industries are examined on a relative basis. Explanatory variables including one-period lagged R&D expenses (Lag_RD), cross-product term between the Lag_RD and type of industry (as a dummy variable), and advertising expenses (ADVERTISE) significantly influenced corporate R&D intensity. Moreover, high-growth firms in domestic capital markets showed higher Lag_RD, profitability (PROF) and foreign equity ownership (FOS) than their counterparts in low-growth sectors, whereas low-growth firms had higher market-value based leverage (MLEVER) and ADVERTISE. Overall, these results are expected to influence decision-making of firms concerning the optimal level of R&D expenditure, which may in turn enhance shareholder wealth.

• The Journal of the Korea Contents Association
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• v.17 no.5
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• pp.8-17
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• 2017

Using 1855 observations from 5 years-371 firms panel data during 2010 to 2014 in Chinese stock exchanges, this study examines the impact of managers' ownership on R & D expenditures. The empirical study finds that when firms are state-owned, managers' ownership have negative relation with the level of R & D expenses as well as the likelihood of executing R & D investment, implying that managers are less likely to invest in high risky projects due to managerial ownership's entrenchment effects to pursue private benefits rather than alignment of interest effect as shareholders. The empirical study also finds that when firms are private-owned, managerial ownership are inverse U shaped related to the level of R & D expenses, implying that managers are less likely to invest in high risky projects due to increasing risk aversion resulting from concentration of private wealth at its high level while managers are more likely to invest in high risky projects due to increasing incentives as shareholders at its low level. The results support that the effects of managerial ownership on R & D expenses may be different according to the ownership type of Chinese listed firms.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.5
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• pp.179-190
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• 2020

This research analyses the financial characteristics of corporate R&D intensity in the Korean capital market. It is important to pay greater attention to this subject, given the current situation of the shortage of core components domestically in Korea. Three hypotheses are postulated to investigate the financial factors of R&D investments for KOSDAQ-listed firms during the post-era of the global financial turmoil. By applying a conditional quantile regression (CQR) model, three variables included R&D intensity in the previous year (Lag_RD), the squared term of Lag_RD, and interaction between the high-tech sector and Lag_Rd, reveal significant effects on the current R&D ratio. Whereas more than half of the total variables show variable impacts between firms with higher and lower R&D intensity, only Lag_RD and squared term of Lag_RD were found to be significant. It is expected that these results may contribute to being financial catalysts for an optimal level of R&D expenditures, thereby maximizing firm value for shareholders in KOSDAQ-listed firms.

• Journal of Technology Innovation
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• v.4 no.1
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• pp.185-207
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• 1996

It is frequently pointed out that the Korean economy, with its scarce natural resources, would never have been able to achieve current levels of economic development without the massive provision of well-educated, hardworking human resources. Throughout the industrialization process ,full-fledged deployment and mobilization of qualified human resources have been the foundation to industrial policy and S&T policy. This paper describes the development of S&T human resources in Korea using various statistics including educational enrollment rates, unemployment rates, the allocation of researchers and R&D expenditures among sectors of performance, educational composition of employment within and across industries, technical human resource shortage rates, relative wage levels of SMEs, and composition of labor force by age-group and gender. While analyzing S&T human resources development, this paper discusses issues such as the mismatched demand and supply of skill and knowledge levels of the highly educated, the unbalanced distribution of S&T human resources between sectors, and the low utilization of the female and aged labor force. This paper suggests that the policy maker applies a hybrid of quantitative and qualitative policies to reduce the mismatches of supply and demand of skill and knowledge levels for each labor market categorized according to supply side.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.39 no.4
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• pp.26-39
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• 2016

Korea's main manufacturing industries, which have led its economy for the past three decades, are faced with a serious downturn and loss of competitive advantages due to the current economic depression, China's rise, and the drop of oil prices. Korean business firms must adopt the paradigm shift in their value strategies, along with a government-led industrial restructuring in order to gain sustainable competitive advantages. Business firms allocate their limited resources between value creation and value appropriation, however, what effect does strategic emphasis on value creation versus value appropriation have on a business firm's financial performance? This paper empirically addresses this issue by examining the effect of shifts in strategic emphasis on stock return. Furthermore, this study examines appropriate choices of strategic emphasis to gain differential financial performance. The data set used in this regression analysis comes from the KISLINE database of NICE Information Service. The variables that form the basis of this analysis are stock return, ROA, and Strategic Emphasis [(advertising expenditures-R&D expenditures)/assets]. The interactive effect with situational factors regarding the firm and the type of technological environment in which the firm is operating was also analyzed. Our results show that investors acknowledge a shift of strategic emphasis as a sign of stock valuation. In comparison to US, Korean business firms have weak value creation capabilities in high-technology industries, and weak value appropriation capabilities in low-technology industries. This proves Korean firms are fast followers in the global market. Our findings suggest that Korean firms have to adopt a balanced value strategy, nurturing value creation and developing value appropriation for overcoming the current economic downturn and becoming a first mover in the dawn of "Industry 4.0."

• Journal of Distribution Science
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• v.20 no.2
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• pp.55-64
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• 2022

Purpose: This research is aimed to study the level of the intellectual potential distribution, as well as the correlation between economic growth and key indicators of intellectual potential in each region of Kazakhstan. A review of the conceptual framework shows that there is a large body of research evaluating the level of intellectual potential in different ways based on different factors. Research design, data, and methodology: The research methodology is divided into two groups the integral index method using the normalization of indicators, weighting, and ranking; the method of correlation analysis. By the proposed methodological approaches, were calculated a set of factors affect the distribution of the intellectual potential. Statistics are taken for indicators of development of the intellectual potential for 2011-2020 from the Bureau of National Statistics. Results: Ranking results showed gaps between regions in Kazakhstan by the level of intellectual potential. Correlation analysis results revealed a statistically significant relationship on expenditures on R&D, computer literacy, innovative products, number of PhD students, and cultural and leisure indicators. Conclusions: Based on the obtained results of the intellectual potential level development there were given recommendations for the reproduction and regulation of the intellectual potential in the future.

• Proceedings of the Technology Innovation Conference
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• 1996.12a
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• pp.196-238
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• 1996

Because global innovation-based competition is increasing and the amount of R&D expenditures becomes severely large, it is more likely that mergers and collaborative ventures tend to affect adversely to R&D competition Against this trend, enforcing agency of advanced countries including U.S.A are reassessing certain aspects of competition policy toward mergers and acquisition to ensure that procompetitive, efficiency-enhancing transactions are permitted. The role of competition policy is developing and appropriating new technology and protects the risks involved in the licensing contract of technologies. The role of intellectual property rights is also contrived to promote technological innovation and to increase consumer welfare. That is to say, dynamic efficiency of intellectual property rights includes (l) increase in social welfare and (2) promotion of growth by improvement of quality through invention and commercialization of new product as well as enhanced productive efficiency thorough appropriating new process. Because intellectual property rights are licensed to make use of complementary inputs, the rule of reason approach seems proper when applying antitrust law. To analyze the "Antitrust Guidelines for the Licensing and Acquisition of Intellectual Property"by DOJ and FTC in U.S.A, the author surveyed pros and cons on innovation market approach. This approach will only be used in a narrow range of situations when the evidence is solid, concentration numbers are extremely high, and the agencies can predict with a high degree of certainty that the merger will likely lead either to a slowing in the pace of innovation or the loss of an alternative research track that is likely to lead to a product beneficial to consumers. The author introduces the studies on licensing contract of intellectual property rights and competition polices on behalf of potential inquirers. Also the author invites the interdisciplinary researchers to analyze further with a model on the aspects of the "Notice 1995-10 for Types and Criteria on Unfair Transaction Behavior in International Contracts" by Fair Trade Committee of Korea.