• Journal of Korea Technology Innovation Society
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• v.16 no.1
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• pp.41-62
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• 2013

In order to facilitate the R&D of SMEs and foster innovative SMEs, the Small and Medium Business Administration is funding the SMEs in the focused supporting industries which are selected by a primary consideration of the political conformity. The correlations among the distribution of engaged SMEs, the distribution of SMEs which applied the fund, and the distribution of SMEs funded in the industries are analysed, in order to realize the effectiveness of the top-down method for selecting the focused supporting industries. As a result, there was a large deviation of both the number of the engaged SMEs and the number of the applied SMEs in the each industry, which means that the selected industries did not accurately reflect the needs for the technology development of SMEs. In addition, the distribution of the applied SMEs was strongly depended on the distribution of the engaged SMEs, which shows the trend that SMEs are trying to make R&D plans in their current industry rather than following the political drive. Moreover, because the distribution of the funded SMEs is strongly correlated with that of the applied SMEs, one could know that the selected industries were neither fostered strategically nor evenly but the fund was distributed simply according to the distribution of the applied SMEs. In this study, in order to complement the limitations of the top-down method, the bottom-up method which primarily consider the needs for the technology development of SMEs was suggested. It is desirable to consider in the order of the needs and the capabilities of SMEs, the technological perspective and marketability of the industry, and the political importance in the bottom-up method, and it is expected that the method could be flexibly used in the planning of the various programs.