• STI Policy Review
• /
• v.4 no.1
• /
• pp.94-118
• /
• 2013

Innovation plays a large role in green growth. While it is a widely accepted view that, without innovation, it would be very difficult and costly to address major environmental issues, innovation itself tends to be constrained by limited access to eco-financing and is inherently risky, often requiring a long-term horizon. Although global consensus is more or less established as to the urgency and necessity of accelerating green innovation, the quality and quantity of financing in this area is largely insufficient, with increasing funding gaps in many countries. A new financial mechanism is urgently needed in order to re-orient financial flow and enable innovators to overcome the valleys of death that occur throughout the innovation cycle. A number of different modalities exist in financing the commercialisation of eco-innovation. Existing mechanisms have not been as successful as expected, revealing critical limits to furthering certain types of projects that are essential for economic and environmental progress. Experts' estimations have shown that the funding gap will widen in the coming years as demand for clean energy and green infrastructure rises, and as green technologies and innovation develop faster than the market for it can develop. Against this backdrop, the main purpose of this research is threefold: to identify issues and problems regarding current means of funding for eco-innovation and green projects; to provide insight into securing longterm green financing by looking at European cases; and ultimately to suggest policy implications for designing and implementing eco-specific financial instruments, focusing on governments' roles in sustainable financing for eco-innovation. This study analyses different models of financing mechanisms, a mix of public and private funds, in view of suggesting conditions for the sustainable financing of green projects, especially for large-scale high-risk projects. Based on the findings from the analyses of mechanisms and the shortcomings of the existing funding modalities, this study ultimately suggests policy implications for effectively supporting the commercialisation of eco-innovation.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.22 no.2
• /
• pp.290-295
• /
• 2021

This paper analyzed the relationship between corporate debt financing and interest costs using micro firm-level data. We also analyzed the differences in this relationship by the year of 2008 financial crisis. We did not find a negative relationship between corporate interest costs and debt financing. Prior to the 2008 financial crisis, we found a negative relationship between corporate interest costs and debt financing. However, following the 2008 financial crisis, we found a positive relationship between corporate interest costs and debt financing. The impacts of the decrease in corporate interest costs on the increase in corporate debt financing are not significant in the Korean economy. After the 2008 financial crisis, the decrease in corporate interest costs is followed by a decrease in corporate debt financing.

• Information Systems Review
• /
• v.22 no.1
• /
• pp.73-89
• /
• 2020

This study started to identify the "Forward-looking" of the technology appraisal model introduced to diversify financing methods of SMEs and improve financial accessibility. The multivariate regression analysis was performed by setting the business performance(growth, profitability, and stability) of technology financing companies as dependent variables, technology appraisal items as independent variables, number of employees, age of the company, asset and the Korea Standard of Industry Classification related to firm size and industry characteristics as control variables. As a result of the analysis, the technology appraisal items did not explain the profitability of the company significantly and had a limited explanatory power on growth potential. However, in terms of stability, we confirmed that R&D capacity is a significant variable explaining the debt ratio of technology financing companies. Therefore, it is concluded that the 'Forward-looking' reflection on the growth and profitability of the company should be strengthened in the future adjustment of the technology appraisal model and the development of the technology appraisal model for investment.

• World Technopolis Review
• /
• v.7 no.1
• /
• pp.15-43
• /
• 2018

The lack of appropriate performance appraisal and evaluation of incubatees of technology incubation programmes in relation to entrepreneurship development in Nigeria is a major gap that needs to be bridged. This study examined the effect of selected technology incubation programme variables such as training, financing and marketing on entrepreneurship development in Nigeria. A closed-ended questionnaire was used for data collection from the quota-sampled population of the six (6) geo-political zones of Nigeria. Descriptive statistics were used to analyse the data while multiple regression was used to test the hypotheses. The results revealed that technology incubation training has a significant effect on entrepreneurial ability in Nigeria; there is a significant and positive effect of technology incubation financing on entrepreneurial funding portfolio; there is no significant impact of technology incubation marketing programme on entrepreneurial turnover; and technology incubation has no significant impact on entrepreneurial propensity. The study recommended that the National Board for Technology Incubation (NBTI) expand the training modules to capture pre, post and virtual incubatees; to facilitate access to risk funds, cheap capital and encourage establishment of venture capital; to improve on its marketing programme to encompass all marketing needs of incubatees beyond trade-fair participation. However, trade-fairs participation has a significant but limited effect on entrepreneurial turnover, while a technology incubation programme has no significant impact on entrepreneurial propensity, as only six (6) out of the twenty-nine (29) respondents started new venture from the incubation centers which are industrial training students and staff of the incubatees.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.48
• /
• pp.127-155
• /
• 2010

The international transactions of capital goods such as industrial plant exports, overseas constructions, and shipbuilding exports, are so huge that tremendous amount of funds are required, and that most of the loans are long-term credits of over five years. In the export of huge capital goods, financing is more crucial than technology itself. Some of the importing countries are developing ones that are politically and economically unstable. Therefore the financing mechanism for these transactions is conclusive in winning these projects. Global financial market instability caused by US sub-prime mortgage financial crisis expanded all over the world, and the international transactions have been decreased due to global credit crisis. This indicates how much influential the financing market is in international transactions. The financing schemes are classified into supplier credit and buyer credit by who provides the financing. A supplier credit is a credit extended by an exporter(seller) to an importer(buyer) as part of an export contract. Cover for this transaction may be extended by an export credit agency('ECA') to the exporter. In a sales contract a seller shall provide fund required to manufacture goods, and in a construction contract a contractor shall provide fund required to complete a construction. A buyer credit is an arrangement in which an exporter enters into a contract with an importer, which is financed by means of a loan agreement A Comparative Study on a Supplier Credit and a Buyer Credit in International Transactions of Capital Goods 155 where the borrower is the importer. In a sales contract a buyer shall provide fund required to manufacture and procure the goods, and in a construction contract an owner shall provide fund required to complete a construction. Therefore an exporter is paid on progressive payment method. A supplier credit and a buyer credit have their own advantages and disadvantages in the respect of the parties respectively. These two financing methods are selectively used considering financing conditions such as funding cost, importer's and/or exporter's financial conditions, importing country's political risk.

• Journal of Convergence for Information Technology
• /
• v.11 no.4
• /
• pp.203-210
• /
• 2021

This study analyzed the financing ratio by operation fund financing method and their impact on management performance according to the establishment operation management entity of the medical institution. For the analysis method, ANOVA, logistic regression, and regression analysis were conducted using financial information registered with HASPA.The results of the study, The ratio of gross revenue to operating funds differed significantly depending on the establishment operation management entity. In addition, it was found that the financing ratio of each operation fund financing method was significantly related to the management results(deficit, surplus), and the impact of the operation fund financing method on management performance differed according to the establishment operation management entity. As a result, the management of operating funds of medical institutions is deemed appropriate to apply cost management first considering the ratio of revenue to operating funds, and then to utilize internal operating funds.

• Journal of Energy Engineering
• /
• v.18 no.3
• /
• pp.175-190
• /
• 2009

This study examines the influence of scale economy, technology, financing capability and market competition on economic performance by value chain in Korean solar energy companies, using the multiple logistic regression analysis. The current profit ratio is analyzed to have been positively affected by financing capability, while negatively by market competition. The scale economy and technology are analyzed to have no statistical significance on the economic performance. The current profit ratio for companies creating higher value in the sourcing process is negatively affected by technology while positively by financial capability. The one in the manufacturing process is affected positively by technology and financing capability, and the one in the marketing process is affected positively by financing capability while negatively by market competition. The implications of this study are as follows: Korean solar energy industry is recommended i) to establish the specific innovation system for technology development, ii) to set up advanced financial system, iii) to carry out the fractal system, the manufacturing system through the network of the firms owning core competence per value chain.

• Journal of Korea Technology Innovation Society
• /
• v.12 no.2
• /
• pp.360-387
• /
• 2009

In this paper, we analyse empirically the effects of internal financing on investment of innovative small and medium sized enterprises listed on Kosdaq Market of Korea Exchange. The main results of this study can be summarized as follows. Free cash flows by proxy variables of internal financing have the significant effects on R&D investment as well as fixed asset investment. Internal financing has much more effects on R&D investment of general enterprises listed on Kosdaq Market than that of venture enterprises listed on Kosdaq Market, and on R&D investment of innovative enterprises than that of non-innovative enterprises. Internal financing has more effects on asset-counted R&D investment than cost-counted R&D investment. Asset-counted R&D investment is counted in intangible assets on Balance Sheet, and cost-counted R&D investment is counted in cost on Income Statement. Internal financing has more effects on R&D investment of financial constrained enterprises than that of financial unconstrained enterprises. Financial constraints is measured by credit ratings. Faulkender and Smith (2007) emphasize that low credit ratings enterprises are more likely to face financial constraints, and they rely largely on internal financing.

• Proceedings of the Technology Innovation Conference
• /
• 2006.02a
• /
• pp.170-186
• /
• 2006

The guarantee funds for government policy fund, venture capital investment fund, technology guarantee debt are the core parts of the external financing system in the constant technology innovation company. However, the enterpriser's requirement to keep the technology innovation with minimized management intervention and policy maker's hope to advance technology development with clear operation of funds is enough to request for research of the project investment plan to the R&D project. This paper will analyze whether technology innovation company that creates cash flow prefers to the project investment as a financing program or not, and if prefers, what characters of company affect on this preference. The more the company that pursuit the additional R&D activity separated to on-going items becomes over the fixed size, the more prefers the project investment as future external fund-raising. Together with that, this paper suggests that we can apply the plan like special purpose vehicle, SWORD(Stock Warrant Off-Balance sheet R&D) and R&D Limited Partnership as R&D project investment policy, and improve the system itself.

• Korean Journal of Construction Engineering and Management
• /
• v.16 no.6
• /
• pp.84-91
• /
• 2015

Project Financing (PF) is a financing method, executed based upon the projected profitability from a project itself instead of relying on the credit rating of project sponsors or any type of collateral. However, most financial institutions of Korea lacks the long term profitability assessment capability, and they prefer to acquire credit reinforcement from the construction companies in the form of the guarantor or debt argument commitments. As a result, PF contingent liabilities as an indirect debt, are burdened to the construction companies. Even though the PF contingent liabilities are not supposed to be part of the financial statements, they became a mandatory disclosure items since 2009. In this study, PF contingent liabilities were studied to indicate how they were correlated with construction firms' financial ratios. Construction firms were grouped by their credit rating and each group was compared in order to analyze PF contingent liabilities' impact on the financial condition of the company in terms of liquidity, liability, and stability.