• Journal of Intelligence and Information Systems
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• v.26 no.3
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• pp.51-69
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• 2020

Now, it is a stylized fact that a small number of technology firms such as Apple, Alphabet, Microsoft, Amazon, Facebook and a few others have become larger and dominant players in an industry. Coupled with the rise of these leading firms, we have also observed that a large number of young firms have become an acquisition target in their early IPO stages. This indeed results in a sharp decline in the number of new entries in public exchanges although a series of policy reforms have been promulgated to foster competition through an increase in new entries. Given the observed industry trend in recent decades, a number of studies have reported increased concentration in most developed countries. However, it is less understood as to what caused an increase in industry concentration. In this paper, we uncover the mechanisms by which industries have become concentrated over the last decades by tracing the changes in industry concentration associated with a firm's status change in its early IPO stages. To this end, we put emphasis on the case in which firms are acquired shortly after they went public. Especially, with the transition to digital-based economies, it is imperative for incumbent firms to adapt and keep pace with new ICT and related intelligent systems. For instance, after the acquisition of a young firm equipped with AI-based solutions, an incumbent firm may better respond to a change in customer taste and preference by integrating acquired AI solutions and analytics skills into multiple business processes. Accordingly, it is not unusual for young ICT firms become an attractive acquisition target. To examine the role of M&As involved with young firms in reshaping the level of industry concentration, we identify a firm's status in early post-IPO stages over the sample periods spanning from 1990 to 2016 as follows: i) being delisted, ii) being standalone firms and iii) being acquired. According to our analysis, firms that have conducted IPO since 2000s have been acquired by incumbent firms at a relatively quicker time than those that did IPO in previous generations. We also show a greater acquisition rate for IPO firms in the ICT sector compared with their counterparts in other sectors. Our results based on multinomial logit models suggest that a large number of IPO firms have been acquired in their early post-IPO lives despite their financial soundness. Specifically, we show that IPO firms are likely to be acquired rather than be delisted due to financial distress in early IPO stages when they are more profitable, more mature or less leveraged. For those IPO firms with venture capital backup have also become an acquisition target more frequently. As a larger number of firms are acquired shortly after their IPO, our results show increased concentration. While providing limited evidence on the impact of large incumbent firms in explaining the change in industry concentration, our results show that the large firms' effect on industry concentration are pronounced in the ICT sector. This result possibly captures the current trend that a few tech giants such as Alphabet, Apple and Facebook continue to increase their market share. In addition, compared with the acquisitions of non-ICT firms, the concentration impact of IPO firms in early stages becomes larger when ICT firms are acquired as a target. Our study makes new contributions. To our best knowledge, this is one of a few studies that link a firm's post-IPO status to associated changes in industry concentration. Although some studies have addressed concentration issues, their primary focus was on market power or proprietary software. Contrast to earlier studies, we are able to uncover the mechanism by which industries have become concentrated by placing emphasis on M&As involving young IPO firms. Interestingly, the concentration impact of IPO firm acquisitions are magnified when a large incumbent firms are involved as an acquirer. This leads us to infer the underlying reasons as to why industries have become more concentrated with a favor of large firms in recent decades. Overall, our study sheds new light on the literature by providing a plausible explanation as to why industries have become concentrated.

• Journal of Korean Society of Forest Science
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• v.16 no.1
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• pp.33-62
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• 1972

Pitch pine (Pinus rigida Miller) in Korea has become one of the major silvicultural species for many years since it was introduced from the United States of America in 1907. To attain the more rational wood utilization basical researches on wood properties are primarily needed, since large scale of timber production from Pitch Pine trees has now been accomplishing in the forested areast hroughout the country. Under the circumustances, this experiment was carried out to study the wood anatomical, physical and mechanical properties of Pitch Pine grown in the country. Materials used in this study had been prepared by cutting the selected pitch pine trees from the Seoul National University Forests located in Suwon. To obtain and compare the anatomical and physical properties of the different parts of tree such as stem, branch, top and rootwood, this study had been divided into two categories (anatomical and physical). For the anatomical study macroscopical and microscopical features such as annual ring, intercellular cannal, ray, tracheid, ray trachid, ray parenchyma cell and pit etc. were observed and measured by the different parts (stem, branch, root and topwood) of tree. For the physical and mechanical properties the moisture content of geen wood, wood specific gravity, shrinkage, compression parallel to the grain, tension parallel and perpendicular to the grain, radial and tangential shear, bending, cleavage and hardness wree tested. According to the results this study may be concluded as follows: 1. The most important comparable features in general properties of wood among the different parts of tree were distinctness and width of annual ring, transition from spring to summerwood, wood color, odor and grain etc. In microscopical features the sizes of structural elements of wood were comparable features among the parts of tree. Among their features, length, width and thickness of tracheids, resin ducts and ray structures were most important. 2. In microscopical features among the different parts of tree stem and topwood were shown simillar reults in tissues. However in rootwood compared with other parts on the tangential surface distinctly larger ray structures were observed and measured. The maximum size of unseriate ray was attained to 27 cell ($550{\mu}$) height in length and 35 microns in width. Fusiform rays were formed occasionally the connected ray which contain one or several horizontal cannals. Branchwood was shown the same features like stemwood but the measured values were very low in comparing with other parts of tree. 3. Trachid length measured among the different parts of tree were shown largest in stem and shortest in branchwood. In comparing the tracheid length among the parts the differences were not shown only between stem and rootwood, but shown between all other parts of tree. Trachid diameters were shown widest in rootwood and narrowest in branchwood, and the differences among the different parts were not realized. Wall thickness were shown largest value in rootwood and smallest in branchwood, and the differences were shown between root and top or branchwood, and between stem and branch or top wood, but not shown between other parts of tree. 4. Moisture contents of green wood were shown highest in topwood and lowest in heartwood of stem. The differences among the different parts were recognized between top or heartwood and other parts of tree, but not between root and branchwood or root and sapwood. 5. Wood specific gravities were shown highest in stem and next order root and branchwood, but lowest in topwood. The differences were shown clearly between stemwood and other parts of tree, but not root and branchwood. However the significant difference is realized as most lowest value in topwood. 6. In compression strength parallel to the grain compared among the different parts of tree at the 14 percent of moisture content, highest strength was appeared in stem, next order branch and rootwood, but lowest in topwood. 7. In bending strength compared among the different parts of tree at the 14 percent of moisture content clearly highest strength was shown in branchwood, next order stem and root, but lowest in topwood. Though the branchwood has lower specific gravity than stemwood it was shown clearly high bending strength.

• Journal of Korean Society of Archives and Records Management
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• v.5 no.2
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• pp.27-48
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• 2005

This study investigates the current preservation and management of four records and documentary heritage in Korea that is in the UNESCO's Memory of the World Register. The study analyzes their problems and corresponding solutions in digitizing those world records heritages. This study also reviews additional four documentary books in Korea that are in the wish list to add to UNESCO's Memory of the World Register. This study is organized as the following: Chapter 2 examines the value and meanings of world records and documentary heritage in Korea. The registry requirements and procedures of UNESCO's Memory of the World Register are examined. The currently registered records of Korea include Hunmin-Chongum, the Annals of the Choson Dynasty, the Diaries of the Royal Secretariat (Seungjeongwon Ilgi), and Buljo- Jikji-Simche-Yojeol (vol. II). These records heritage's worth and significance are carefully analyzed. For example, Hunmin-Chongum("訓民正音") is consisted of unique and systematic letters. Letters were delicately explained with examples in its original manual at the time of letter's creation, which is an unparalleled case in the world documentary history. The Annals of the Choson Dynasty("朝鮮王朝實錄") are the most comprehensive historic documents that contain the longest period of time in history. Their truthfulness and reliability in describing history give credits to the annals. The Royal Secretariat Diary (called Seungjeongwon-Ilgi("承政院日記")) is the most voluminous primary resources in history, superior to the Annals of Choson Dynasty and Twenty Five Histories in China. Jikji("直指") is the oldest existing book published by movable metal print sets in the world. It evidences the beginning of metal printing in the world printing history and is worthy of being as world heritage. The review of the four registered records confirms that they are valuable world documentary heritage that transfers culture of mankind to next generations and should be preserved carefully and safely without deterioration or loss. Chapter 3 investigates the current status of preservation and management of three repositories that store the four registered records in Korea. The repositories include Kyujanggak Archives in Seoul National University, Pusan Records and Information Center of National Records and Archives Service, and Gansong Art Museum. The quality of their preservation and management are excellent in all of three institutions by the following aspects: 1) detailed security measures are close to perfection 2) archiving practices are very careful by using a special stack room in steady temperature and humidity and depositing it in stack or archival box made of paulownia tree and 3) fire prevention, lighting, and fumigation are thoroughly prepared. Chapter 4 summarizes the status quo of digitization projects of records heritage in Korea. The most important issue related to digitization and database construction on Korean records heritage is likely to set up the standardization of digitization processes and facilities. It is urgently necessary to develop comprehensive standard systems for digitization. Two institutions are closely interested in these tasks: 1) the National Records and Archives Service experienced in developing government records management systems; and 2) the Cultural Heritage Administration interested in digitization of Korean old documents. In collaboration of these two institutions, a new standard system will be designed for digitizing records heritage on Korean Studies. Chapter 5 deals with additional Korean records heritage in the wish list for UNESCO's Memory of the World Register, including: 1) Wooden Printing Blocks(經板) of Koryo-Taejangkyong(高麗大藏經) in Haein Temple(海印寺); 2) Dongui-Bogam("東醫寶鑑") 3) Samguk-Yusa("三國遺事") and 4) Mugujeonggwangdaedaranigyeong. Their world value and importance are examined as followings. Wooden Printing Blocks of Koryo-Taejangkyong in Haein Temple is the worldly oldest wooden printing block of cannon of Buddhism that still exist and was created over 750 years ago. It needs a special conservation treatment to disinfect germs residing in surface and inside of wooden plates. Otherwise, it may be damaged seriously. For its effective conservation and preservation, we hope that UNESCO and Government will schedule special care and budget and join the list of Memory of the Word Register. Dongui-Bogam is the most comprehensive and well-written medical book in the Korean history, summarizing all medical books in Korea and China from the Ancient Times through the early 17th century and concentrating on Korean herb medicine and prescriptions. It is proved as the best clinical guidebook in the 17th century for doctors and practitioners to easily use. The book was also published in China and Japan in the 18th century and greatly influenced the development of practical clinic and medical research in Asia at that time. This is why Dongui Bogam is in the wish list to register to the Memory of the World. Samguk-Yusa is evaluated as one of the most comprehensive history books and treasure sources in Korea, which illustrates foundations of Korean people and covers histories and cultures of ancient Korean peninsula and nearby countries. The book contains the oldest fixed form verse, called Hyang-Ka(鄕歌), and became the origin of Korean literature. In particular, the section of Gi-ee(紀異篇) describes the historical processes of dynasty transition from the first dynasty Gochosun(古朝鮮) to Goguryeo(高句麗) and illustrates the identity of Korean people from its historical origin. This book is worthy of adding to the Memory of the World Register. Mugujeonggwangdaedaranigyeong is the oldest book printed by wooden type plates, and it is estimated to print in between 706 and 751. It contains several reasons and evidence to be worthy of adding to the list of the Memory of the World. It is the greatest documentary heritage that represents the first wooden printing book that still exists in the world as well as illustrates the history of wooden printing in Korea.

• Journal of Global Scholars of Marketing Science
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• v.18 no.2
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• pp.223-252
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• 2008

In this study, we attempt to propose a choice-based diffusion model with switching cost, which can be used to forecast the dynamic substitution and competition among previous and new products at both individual-level and aggregate level, especially when market data for new products is insufficient. Additionally, we apply the proposed model to the empirical case of substitution and competition among Analog Cable TV that represents previous fixed charged broadcasting service and Digital Cable TV and Internet Protocol TV (IPTV) that are new ones, verify the validities of our proposed model, and finally derive related empirical implications. For empirical application, we obtained data from survey conducted as follows. Survey was administered by Dongseo Research to 1,000 adults aging from 20 to 60 living in Seoul, Korea, in May of 2007, under the title of 'Demand analysis of next generation fixed interactive broadcasting services'. Conjoint survey modified as follows, was used. First, as the traditional approach in conjoint analysis, we extracted 16 hypothetical alternative cards from the orthogonal design using important attributes and levels of next generation interactive broadcasting services which were determined by previous literature review and experts' comments. Again, we divided 16 conjoint cards into 4 groups, and thus composed 4 choice sets with 4 alternatives each. Therefore, each respondent faces 4 different hypothetical choice situations. In addition to this, we added two ways of modification. First, we asked the respondents to include the status-quo broadcasting services they subscribe to, as another alternative in each choice set. As a result, respondents choose the most preferred alternative among 5 alternatives consisting of 1 alternative with current subscription and 4 hypothetical alternatives in 4 choice sets. Modification of traditional conjoint survey in this way enabled us to estimate the factors related to switching cost or switching threshold in addition to the effects of attributes. Also, by using both revealed preference data(1 alternative with current subscription) and stated preference data (4 hypothetical alternatives), additional advantages in terms of the estimation properties and more conservative and realistic forecast, can be achieved. Second, we asked the respondents to choose the most preferred alternative while considering their expected adoption timing or switching timing. Respondents are asked to report their expected adoption or switching timing among 14 half-year points after the introduction of next generation broadcasting services. As a result, for each respondent, 14 observations with 5 alternatives for each period, are obtained, which results in panel-type data. Finally, this panel-type data consisting of $4{\ast}14{\ast}1000=56000$observations is used for estimation of the individual-level consumer adoption model. From the results obtained by empirical application, in case of forecasting the demand of new products without considering existence of previous product(s) and(or) switching cost factors, it is found that overestimated speed of diffusion at introductory stage or distorted predictions can be obtained, and as such, validities of our proposed model in which both existence of previous products and switching cost factors are properly considered, are verified. Also, it is found that proposed model can produce flexible patterns of market evolution depending on the degree of the effects of consumer preferences for the attributes of the alternatives on individual-level state transition, rather than following S-shaped curve assumed a priori. Empirically, it is found that in various scenarios with diverse combinations of prices, IPTV is more likely to take advantageous positions over Digital Cable TV in obtaining subscribers. Meanwhile, despite inferiorities in many technological attributes, Analog Cable TV, which is regarded as previous product in our analysis, is likely to be substituted by new services gradually rather than abruptly thanks to the advantage in low service charge and existence of high switching cost in fixed charged broadcasting service market.

• (The) Research of the performance art and culture
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• no.19
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• pp.347-378
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• 2009

Those who were from Jaeincheon and Jaein line entertainers played great roles during transition period from traditional society to modern society, and even at present the dances of them are the representative traditional dances of Korea and the matrix of Korean originality. Nevertheless, Korea dance field has given little importance to these dances, but too much importance to Gibang dance in studying traditional dances, which causes the studies on Jaein line danced to be superficial or separate. Therefore, the aims of this article are to analyze the dances of Jaein line by Han Seong-jun, who was representative for the dances, and to appraise the historical value of them. Han Seong-jun(1874-1942) was the most influential dummer and dancer of his day in Japanese colonial times, and has been recognized as one of the masters of traditional dances. He established autonomy of traditional dances by reorganizing, collecting and stage-formalizing the dances, and systemized transmitting ways for various folk dances including a Buddhist dance, which made it possiblefor those dances to be traditional dances of Korea and the bases for creative dances. The values of Jaein line dances, which were transmitted through Han, are the following: First, the dances have been designated as national or regional intangible cultural assets, and, as the representative traditional arts, we proudly show them to the world. Second, the dances, as one of the genres of Korean dances, are the subjects of younger scholars' studies. Third, the dances become one of the representative examples of revivals of traditional dances, which tend to be extinct during modernization times, and contribute to establishing national identity and subjectivity. In addition, they contribute to discovering and transmitting other traditional dances. Fourth, the dances enable many dancers to make association, that is, Association for Preservation of Traditional Dances,for the transmitting the dances, and to distribute the dances and get many dancers to transmit the dances. Furthermore, as new performance repertories, they give another pleasure to the audience. In addition to the above, as a base for expansion of Korean creative dances, Han's dances have other values such as the following: First, in searching for a new methodology for creation, he played an important role in rediscovering the foundation in the tradition, and tried to discover nationalidentity by employing the traditional dances for expression of theme. Second, he contributed to drastically dissolving the genres by expanding the gesture language from motion factors of traditional dances, which can be compared to the modern dance. Third, he tried new challenging approaches to re-create the tradition, and contributed to pursuing the simple elements of our traditional dances as traditional aesthetics. While the dances of Jaein line have such values as the above, there are also some problems around the dances, such as the confusion in the process of transmission resulted from different transmission forms and transmitters, which we must no longer leave as it is. Furthermore, it is urgent that the rest of Jaein line dances be recovered and designated as intangible cultural assets for the sound transmission of the traditional dances.

• Korean Journal of Weed Science
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• v.12 no.1
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• pp.70-79
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• 1992

From the beginning of the chosun dynasty, an agriculture-first policy was imposed by being written farming books, for instance, Nongsajiksul, matched with real conditions of local agriculture, which provided the grounds of new, intensive farming technologies. This farming book was the collection of good fanning technologies that were experienced in rural farm areas at that time. According to Nongsajiksul, rice culture systems were divided into "Musarmi"(Water-Seeded rice), /"Kunsarmi"(dry-seeded rice), /transplanted rice and mountainous rice (upland rice) culture. The characteristics of these rice cultures with high technologies were based of scientific weeding methods, improved fertilization, and cultivation works using cattle power and manpower tools systematically. Reclamation of coastal swampy and barren land was possible in virtue of fire cultivation farming(火耕) and a weeding tool called "Yoonmok"(輪木). Also, there was an improved hoe to do weeding works as well as thinning and heaping-up of soil at seeding stages of rice. Direct-seeded rice culture in flat paddy fields were expanded by constructing the irrigation reservoirs and ponds, and the valley paddy fields was reclaimed by constructing "Boh(洑)". These were possible due to weed control by irrigation waters, keeping soil fertility by inorganic fertilization during irrigation, and increased productivity of rice fields by supplying good physiological conditions for rice. Also, labor-saving culture of rice was feasible by transplanting but in national-wide, rice should not basically be transplanted because of the restriction of water use. Thus, direct-seeded rice in dry soils was established, in which rice was direct-seeded and grown in dry soils by seedling stages and was grown in flooded fields when rained, as in the book "Nongsajiksul". During the middle of the dynasty(AD 1495-1725), the excellent labor-saving farmings include check-rowing transplanting because of weeding efficiency and availability in rice("Hanjongrok"), and, nurserybed techniques (early transplanting of rice) were emphasized on the basis of rice transplanting ["Nongajibsung"]. The techniques for deep plowing with cattle powers and for putting more fertilizers were to improve the productivity of labor and land, The matters advanced in "Sanlimkyungje" more than in "Nongajibsung" were, development of "drybed of rice nursery stock", like "upland rice nursery" today, transplanting, establishment of "winter barly on drained paddy field, and improvement of labor and land-productivity in rice". This resulted in the community of large-scale farming by changing the pattern of small-farming into the production system of rice management. Woo-hayoung(1741-1812) in his book "Chonilrok" tried to reform from large-scale farmings into intensive farmings, of which as eminent view was to divide the land use into transplanting (paddy) and groove-seeding methods(dry field). Especially as insisted by Seo-yugo ("Sanlimkyungjeji"), the advantages of transplanting were curtailment of weeding labors, good growth of rice because of soil fertility of both nurserybed and paddy field, and newly active growth because rice plants were pulled out and replanted. Of course, there were reestimation of transplanting, limitation of two croppings a year, restriction of "paddy-upland alternation", and a ban for large-scale farming. At that period, Lee-jiyum had written on rice farming technologies in dry upland with consider of the land, water physiology of rice, and convenience for weeding, and it was a creative cropping system to secure the farm income most safely. As a integrated considerations, the followings must be introduced to practice the improved farming methods ; namely, improvement of farming tools, putting more fertilizers, introduction of cultural technologies more rational and efficient, management of labor power, improvement of cropping system to enhance use of irrigation water and land, introduction of new crops and new varieties.

• Korean small business review
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• v.32 no.1
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• pp.65-87
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• 2010

With the advent of knowledge-based society, the revitalization of technological innovation type SMEs, termed "inno-biz" hereafter, has been globally recognized as a government policymakers' primary concern in strengthening national competitiveness, and much effort is being put into establishing polices of boosting the start-ups and innovation capability of SMEs. Especially, in that the inno-biz enables national economy to get vitalized by widening world markets with its superior technology, and thus, taking the initiative of extremely competitive world markets, its growth and development has greater significance. In the case of Korea, the government has been maintaining the policies since the late 1990s of stimulating the growth of SMEs as well as building various infrastructures to foster the start-ups of the SMEs such as venture businesses with high technology. In addition, since the enactment of "Innovation Promotion Law for SMEs" in 2001, the government has been accelerating the policies of prioritizing the growth and development of inno-biz. So, for the sound growth and development of Korean inno-biz, this paper intends to offer effective management strategies for SMEs and suggest proper policies for the government, by researching into the effect of technological innovation capability and technology commercialization capability as the primary business resources on business performance in Korean SMEs in the light of market information orientation. The research is carried out on Korean companies characterized as inno-biz. On the basis of OSLO manual and prior studies, the research categorizes their status. R&D capability, technology accumulation capability and technological innovation system are categorized into technological innovation capability; product development capability, manufacturing capability and marketing capability into technology commercialization capability; and increase in product competitiveness and merits for new technology and/or product development into business performance. Then the effect of each component on business performance is substantially analyzed. In addition, the mediation effect of technological innovation and technology commercialization capability on business performance is observed by the use of the market information orientation as a parameter. The following hypotheses are proposed. H1 : Technology innovation capability will positively influence business performance. H1-1 : R&D capability will positively influence product competitiveness. H1-2 : R&D capability will positively influence merits for new technology and/or product development into business performance. H1-3 : Technology accumulation capability will positively influence product competitiveness. H1-4 : Technology accumulation capability will positively influence merits for new technology and/or product development into business performance. H1-5 : Technological innovation system will positively influence product competitiveness. H1-6 : Technological innovation system will positively influence merits for new technology and/or product development into business performance. H2 : Technology commercializing capability will positively influence business performance. H2-1 : Product development capability will positively influence product competitiveness. H2-2 : Product development capability will positively influence merits for new technology and/or product development into business performance. H2-3 : Manufacturing capability will positively influence product competitiveness. H2-4 : Manufacturing capability will positively influence merits for new technology and/or product development into business performance. H2-5 : Marketing capability will positively influence product competitiveness. H2-6 : Marketing capability will positively influence merits for new technology and/or product development into business performance. H3 : Technology innovation capability will positively influence market information orientation. H3-1 : R&D capability will positively influence information generation. H3-2 : R&D capability will positively influence information diffusion. H3-3 : R&D capability will positively influence information response. H3-4 : Technology accumulation capability will positively influence information generation. H3-5 : Technology accumulation capability will positively influence information diffusion. H3-6 : Technology accumulation capability will positively influence information response. H3-7 : Technological innovation system will positively influence information generation. H3-8 : Technological innovation system will positively influence information diffusion. H3-9 : Technological innovation system will positively influence information response. H4 : Technology commercialization capability will positively influence market information orientation. H4-1 : Product development capability will positively influence information generation. H4-2 : Product development capability will positively influence information diffusion. H4-3 : Product development capability will positively influence information response. H4-4 : Manufacturing capability will positively influence information generation. H4-5 : Manufacturing capability will positively influence information diffusion. H4-6 : Manufacturing capability will positively influence information response. H4-7 : Marketing capability will positively influence information generation. H4-8 : Marketing capability will positively influence information diffusion. H4-9 : Marketing capability will positively influence information response. H5 : Market information orientation will positively influence business performance. H5-1 : Information generation will positively influence product competitiveness. H5-2 : Information generation will positively influence merits for new technology and/or product development into business performance. H5-3 : Information diffusion will positively influence product competitiveness. H5-4 : Information diffusion will positively influence merits for new technology and/or product development into business performance. H5-5 : Information response will positively influence product competitiveness. H5-6 : Information response will positively influence merits for new technology and/or product development into business performance. H6 : Market information orientation will mediate the relationship between technology innovation capability and business performance. H7 : Market information orientation will mediate the relationship between technology commercializing capability and business performance. The followings are the research results : First, as for the effect of technological innovation on business performance, the technology accumulation capability and technological innovating system have a positive effect on increase in product competitiveness and merits for new technology and/or product development, while R&D capability has little effect on business performance. Second, as for the effect of technology commercialization capability on business performance, the effect of manufacturing capability is relatively greater than that of merits for new technology and/or product development. Third, the mediation effect of market information orientation is identified to exist partially in information generation, information diffusion and information response. Judging from these results, the following analysis can be made : On Increase in product competitiveness, directly related to successful technology commercialization of technology, management capability including technological innovation system, manufacturing capability and marketing capability has a relatively strong effect. On merits for new technology and/or product development, on the other hand, capability in technological aspect including R&D capability, technology accumulation capability and product development capability has relatively strong effect. Besides, in the cast of market information orientation, the level of information diffusion within an organization plays and important role in new technology and/or product development. Also, for commercial success like increase in product competitiveness, the level of information response is primarily required. Accordingly, the following policies are suggested : First, as the effect of technological innovation capability and technology commercialization capability on business performance differs among SMEs; in order for SMEs to secure competitiveness, the government has to establish microscopic policies for SMEs which meet their needs and characteristics. Especially, the SMEs lacking in capital and labor are required to map out management strategies of focusing their resources primarily on their strengths. And the government needs to set up policies for SMEs, not from its macro-scaled standpoint, but from the selective and concentrative one that meets the needs and characteristics of respective SMEs. Second, systematic infrastructures are urgently required which lead technological success to commercial success. Namely, as technological merits at respective SME levels do not always guarantee commercial success, the government should make and effort to build systematic infrastructures including encouragement of M&A or technology trade, systematic support for protecting intellectual property, furtherance of business incubating and industrial clusters for strengthening academic-industrial network, and revitalization of technology financing, in order to make successful commercialization from technological success. Finally, the effort to innovate technology, R&D, for example, is essential to future national competitiveness, but its result is often prolonged. So the government needs continuous concern and funding for basic science, in order to maximize technological innovation capability. Indeed the government needs to examine continuously whether technological innovation capability or technological success leads satisfactorily to commercial success in market economic system. It is because, when the transition fails, it should be left to the government.