• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.10 no.3
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• pp.75-83
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• 2015

This article investigates the impact of SMEs' R&D expenditure, government R&D funding, the number of funded by Government R&D programs on the employment growth rate. This study also explores whether government R&D funding and the number of funded by Government R&D programs have interaction effects between SMEs' R&D expenditures and the employment growth rate. The results show that SMEs' R&D expenditure and government R&D funding have a positive effect on the employment growth rate. The rest of variables have no significant direct effects on the employment growth rate. The government R&D funding has a interaction effect between SMEs' R&D expenditures and the employment growth rate. Especially, the firm group of high-level innovation capabilities has a positive effect on the employment growth rate. The results explain that the government R&D funding influences SMEs' employment positively and the impact of the government R&D funding on employment is more effective in the firm group of high-level innovation capabilities. Therefore, Government provides differentiation strategy of R&D funding by innovation capabilities of SMEs and can maximize the employment.

• Journal of Korea Technology Innovation Society
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• v.21 no.2
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• pp.663-683
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• 2018

This study aims to analyze the effectiveness of R&D tax credit for SMEs. We surveyed to collect the information on firm's financial statements and R&D tax credit during 2014-2016, and implemented fixed effect model, random effect model and panel negative binomial model. The results show that the effect of R&D tax credit is 5.3 times larger in terms of R&D expenditure and 4.3 times bigger in terms of number of researchers than that of R&D subsidy. In addition, the effect of tax credit on non-metropolitan area companies is higher than that in the metropolitan area. Based on these results, we suggests three ways to improve the R&D tax incentive system for SMEs; To convert unused R&D tax credit of the start-ups to tax points, to exempt the minimum tax rate on R&D expenditure in equipment, and to unify the operation of various R&D tax credit institution.

• International Commerce and Information Review
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• v.16 no.2
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• pp.279-296
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• 2014

This study focused on the Technology export of Korea SMEs. Therefore this study made an empirical analysis for investigating the competitiveness of technology export in Korea SMEs and using panel data 2003-2011 of technology trade data between 72 Countries. In particular, the study deduced the correlation between technology export in Korea SMEs using the variables of Gross Domestic Expenditure on R&D and Per capita GDP, distance, population, free-trade index, firm R&D against industry value added of country, Patent grants by country to USA fixed effect model in panel linear regression model. It is found that the Technology export of Korea SMEs made a significant effect on the per-GDP, Gross Domestic Expenditure on R&D. The results suggest that the study should use technology gap variables and the strategy for activating the Technology export of Korea SMEs should be made for future works.

• Journal of Korea Technology Innovation Society
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• v.20 no.4
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• pp.1212-1242
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• 2017

In this study, the effectiveness of the innovative company certification system, which is one of the important means of the SME innovation promotion policies, was examined in terms of technological innovation activity and performance. To this end, we used the results of 'SME Technology Statistical Survey' conducted by the Small and Medium Business Administration and the Korea Federation of Small and Medium Business in 2013~2015 to compare the innovative SMEs that have received the certifications such as Venture Certification, Innobiz Certification, and Mainbiz Certification with the general SMEs that did not. As a result, it was found that the innovative SMEs have comparative advantage in many detailed indicators related to the technological innovation activity and performance. However, the ratio of external use of R&D expenditure, the number of technology development attempts and the number of successes were not different according to the survey year, so it is necessary to strengthen the follow-up management of the system. On the other hand, the proportion of self-procurement R&D expenditure of the general SMEs was significantly higher than that of the innovative SMEs in all three-year surveys. Therefore, it is necessary to regulate the government funding for the innovative SMEs to be used as a complementary material, not as a substitute for their own R&D investment. In addition, the technological innovation activity and performance of a company were more influenced by the size of the company and the participating industry rather than by the certification, so it is necessary to consider it when establishing the technology innovation promotion policies.

• Journal of Korea Technology Innovation Society
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• v.21 no.1
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• pp.420-453
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• 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 Korea Society of Computer and Information
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• v.17 no.1
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• pp.235-245
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• 2012

The purpose of this paper is to develop an online analytical processing (OLAP) database system for small and medium-sized enterprises (SMEs) growth support. In this paper, we made a model of measuring SME size first. The model is composed of five determinants of firm growth such as employment, sales, the amount of export, own technology, and the ratio of R&D expenditure to sales. Second, we designed the FREQUENCY dimension table which will make staged support of R&D expenditure. We developed the OLAP database system by using three dimensions including the FREQUENCY dimension, and using the model of measuring SME size. Also we assessed past decisions on R&D expenditure support in the Small Business R&D Support Project by using the OLAP database system.

• Korean small business review
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• v.42 no.2
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• pp.43-67
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• 2020

Studies on technological innovation of SMEs have made remarkable growth both qualitatively and quantitatively, but each study has a limitation to generalize due to lack of data, diversity of methodologies and variables. Therefore, a systematic and comprehensive statistical approach to obtain generalized conclusions through numerous empirical studies can help both the strategic decision making of SMEs and the government's innovation policies. The purpose of this study is to comprehensively analyze the technological innovation process of SMEs through meta-analysis. For this, the antecedents of technological innovation, the relationship between technological innovation and management performance of SMEs were analyzed. The results of using 62,512 samples from 111 domestic empirical studies were as follows; First, to improve the technological innovation of SMEs, internal cooperation, innovation culture, dynamic capabilities, and absorptive capacity were important antecedents. Second, in terms of IP performance, which was introduced as a proxy for technological innovation, human resource management, technological opportunities, commercialization capabilities, financial resources, and R&D expenditure. Third, technological innovation has a medium-sized effect on financial performance, however the effect of IP performance has a small effect size. Lastly, in the relationship between technological innovation and financial performance, the method of measurement and publication type showed statistically significant moderating effects.

• 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.

• Korean small business review
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• v.31 no.4
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• pp.67-93
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• 2009

The purpose of this paper is to explore the relations between financial constraints and dividend smoothing of innovative small and medium sized enterprises(SMEs) listed on Korea Securities Market and Kosdaq Market of Korea Exchange. The innovative SMEs is defined as the firms with high level of R&D intensity which is measured by (R&D investment/total sales) ratio, according to Chauvin and Hirschey (1993). The R&D investment plays an important role as the innovative driver that can increase the future growth opportunity and profitability of the firms. Therefore, the R&D investment have large, positive, and consistent influences on the market value of the firm. In this point of view, we expect that the innovative SMEs can adjust dividend payment faster than the noninnovative SMEs, on the ground of their future growth opportunity and profitability. And also, we expect that the financial unconstrained firms can adjust dividend payment faster than the financial constrained firms, on the ground of their financing ability of investment funds through the market accessibility. Aivazian et al.(2006) exert that the financial unconstrained firms with the high accessibility to capital market can adjust dividend payment faster than the financial constrained firms. We collect the sample firms among the total SMEs listed on Korea Securities Market and Kosdaq Market of Korea Exchange during the periods from January 1999 to December 2007 from the KIS Value Library database. The total number of firm-year observations of the total sample firms throughout the entire period is 5,544, the number of firm-year observations of the dividend firms is 2,919, and the number of firm-year observations of the non-dividend firms is 2,625. About 53%(or 2,919) of these total 5,544 observations involve firms that make a dividend payment. The dividend firms are divided into two groups according to the R&D intensity, such as the innovative SMEs with larger than median of R&D intensity and the noninnovative SMEs with smaller than median of R&D intensity. The number of firm-year observations of the innovative SMEs is 1,506, and the number of firm-year observations of the noninnovative SMEs is 1,413. Furthermore, the innovative SMEs are divided into two groups according to level of financial constraints, such as the financial unconstrained firms and the financial constrained firms. The number of firm-year observations of the former is 894, and the number of firm-year observations of the latter is 612. Although all available firm-year observations of the dividend firms are collected, deletions are made in the case of financial industries such as banks, securities company, insurance company, and other financial services company, because their capital structure and business style are widely different from the general manufacturing firms. The stock repurchase was involved in dividend payment because Grullon and Michaely (2002) examined the substitution hypothesis between dividends and stock repurchases. However, our data structure is an unbalanced panel data since there is no requirement that the firm-year observations data are all available for each firms during the entire periods from January 1999 to December 2007 from the KIS Value Library database. We firstly estimate the classic Lintner(1956) dividend adjustment model, where the decision to smooth dividend or to adopt a residual dividend policy depends on financial constraints measured by market accessibility. Lintner model indicates that firms maintain stable and long run target payout ratio, and that firms adjust partially the gap between current payout rato and target payout ratio each year. In the Lintner model, dependent variable is the current dividend per share(DPS_t), and independent variables are the past dividend per share(DPS_t-1) and the current earnings per share(EPS_t). We hypothesized that firms adjust partially the gap between the current dividend per share(DPS_t) and the target payout ratio(Ω) each year, when the past dividend per share(DPS_t-1) deviate from the target payout ratio(Ω). We secondly estimate the expansion model that extend the Lintner model by including the determinants suggested by the major theories of dividend, namely, residual dividend theory, dividend signaling theory, agency theory, catering theory, and transactions cost theory. In the expansion model, dependent variable is the current dividend per share(DPS_t), explanatory variables are the past dividend per share(DPS_t-1) and the current earnings per share(EPS_t), and control variables are the current capital expenditure ratio(CEA_t), the current leverage ratio(LEV_t), the current operating return on assets(ROA_t), the current business risk(RISK_t), the current trading volume turnover ratio(TURN_t), and the current dividend premium(DPREM_t). In these control variables, CEA_t, LEV_t, and ROA_t are the determinants suggested by the residual dividend theory and the agency theory, ROA_t and RISK_t are the determinants suggested by the dividend signaling theory, TURN_t is the determinant suggested by the transactions cost theory, and DPREM_t is the determinant suggested by the catering theory. Furthermore, we thirdly estimate the Lintner model and the expansion model by using the panel data of the financial unconstrained firms and the financial constrained firms, that are divided into two groups according to level of financial constraints. We expect that the financial unconstrained firms can adjust dividend payment faster than the financial constrained firms, because the former can finance more easily the investment funds through the market accessibility than the latter. We analyzed descriptive statistics such as mean, standard deviation, and median to delete the outliers from the panel data, conducted one way analysis of variance to check up the industry-specfic effects, and conducted difference test of firms characteristic variables between innovative SMEs and noninnovative SMEs as well as difference test of firms characteristic variables between financial unconstrained firms and financial constrained firms. We also conducted the correlation analysis and the variance inflation factors analysis to detect any multicollinearity among the independent variables. Both of the correlation coefficients and the variance inflation factors are roughly low to the extent that may be ignored the multicollinearity among the independent variables. Furthermore, we estimate both of the Lintner model and the expansion model using the panel regression analysis. We firstly test the time-specific effects and the firm-specific effects may be involved in our panel data through the Lagrange multiplier test that was proposed by Breusch and Pagan(1980), and secondly conduct Hausman test to prove that fixed effect model is fitter with our panel data than the random effect model. The main results of this study can be summarized as follows. The determinants suggested by the major theories of dividend, namely, residual dividend theory, dividend signaling theory, agency theory, catering theory, and transactions cost theory explain significantly the dividend policy of the innovative SMEs. Lintner model indicates that firms maintain stable and long run target payout ratio, and that firms adjust partially the gap between the current payout ratio and the target payout ratio each year. In the core variables of Lintner model, the past dividend per share has more effects to dividend smoothing than the current earnings per share. These results suggest that the innovative SMEs maintain stable and long run dividend policy which sustains the past dividend per share level without corporate special reasons. The main results show that dividend adjustment speed of the innovative SMEs is faster than that of the noninnovative SMEs. This means that the innovative SMEs with high level of R&D intensity can adjust dividend payment faster than the noninnovative SMEs, on the ground of their future growth opportunity and profitability. The other main results show that dividend adjustment speed of the financial unconstrained SMEs is faster than that of the financial constrained SMEs. This means that the financial unconstrained firms with high accessibility to capital market can adjust dividend payment faster than the financial constrained firms, on the ground of their financing ability of investment funds through the market accessibility. Futhermore, the other additional results show that dividend adjustment speed of the innovative SMEs classified by the Small and Medium Business Administration is faster than that of the unclassified SMEs. They are linked with various financial policies and services such as credit guaranteed service, policy fund for SMEs, venture investment fund, insurance program, and so on. In conclusion, the past dividend per share and the current earnings per share suggested by the Lintner model explain mainly dividend adjustment speed of the innovative SMEs, and also the financial constraints explain partially. Therefore, if managers can properly understand of the relations between financial constraints and dividend smoothing of innovative SMEs, they can maintain stable and long run dividend policy of the innovative SMEs through dividend smoothing. These are encouraging results for Korea government, that is, the Small and Medium Business Administration as it has implemented many policies to commit to the innovative SMEs. This paper may have a few limitations because it may be only early study about the relations between financial constraints and dividend smoothing of the innovative SMEs. Specifically, this paper may not adequately capture all of the subtle features of the innovative SMEs and the financial unconstrained SMEs. Therefore, we think that it is necessary to expand sample firms and control variables, and use more elaborate analysis methods in the future studies.

• 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.