• Management & Information Systems Review
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• v.36 no.3
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• pp.219-237
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• 2017

Looking into the top-five innovative sectors in Korea's manufacturing and service industries, this study empirically analyzes the effect of innovation performance on R&D investment, which is one of the most important strategic decisions for corporate management. In the midst of an uncertain business environment, R&D investment has been regarded as the most important strategic decision making in corporate management related to innovation. Corporate management, however, tend to be reluctant to make sufficient R&D investment due to the risk of an investment failure. Therefore, having R&D investment by offsetting this risk has been deemed as a key task for corporate management. However, prior studies have failed to identify which factors affect companies' strategic decision making on R&D investment. This study is to remedy this weakness of prior study. Relying on path dependency theory at organization-level and dominant logic at individual-level, this study empirically examines the multiple regression model, which sees entrepreneurial orientation as a positive mediator between innovation performance and R&D investment. The results found in the analysis of 242 local companies in the manufacturing and service sectors represent that innovation performance has a direct and positive effect on R&D investment, while it indirectly affects R&D investment through the mediating roles of entrepreneurial orientation. They also revealed that innovation performance had a meaningful impact on entrepreneurial orientation, which is an inclination to seek innovation, led to R&D investment. The founding of this study imply that innovation performance in the past affects innovation strategies in the future, and such a relationship could be strengthened by entrepreneurial orientation as the dominant logic of corporate management.

• Asian Journal of Business Environment
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• v.5 no.4
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• pp.59-66
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• 2015

Purpose - The aim of the study is to analyze the impact of the European Union's (EU) focus on innovation and consumption, after the EU Eastern enlargement, on trade, investment, and technology cooperation patterns of Korea to formulate a pan-European marketing strategy, with a special emphasis on the mobile phone industry. Research design, data, and methodology - This study compares the intersection of the pivotal areas in the markets in the "post-new normal" era to identify outlets to commercialize development and innovation in this region. The EU would like to realize potential trade and investment opportunities with the Central European Economic Community (CEEC) from this enlargement. Results - The study analysis suggests a positive impact for innovation and consumption from the EU Eastern enlargement on trade, investment, and technology cooperation patterns of Korea to formulate a pan-European marketing strategy with a special emphasis on the mobile phone industry or motorcar e-strategy. Conclusions - Due to the evolving close interdependencies some hubs have emerged between regional, small markets and the central, larger ones such as Germany and France.

• Journal of Technology Innovation
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• v.4 no.1
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• pp.27-47
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• 1996

The information technology, such as computer, telecommunication, semi- conductor and software technology, is very crucial to enhance the overall level of industrial technology. The workability of linear programming to decide the R&D investment of information technology has been tested in this paper. The case study of Korea during the year 1995 - 2004 suggests that we should enlarge the total investment volume especially on the software technology.

• Proceedings of the Korea Technology Innovation Society Conference
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• 2000.11a
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• pp.259-277
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• 2000

In this paper, we suggest theoretical grounds on the problem of R&D portfolio with different option premiums utilizing the Real Options Model, which has received intensified attention as the method of assessment of R&D project with high risk. Even though there have been many studies focused on the evaluation of option value of single project from technology valuation's perspective. there are few study on the portfolio of multiple technology investment by option value using. This paper bears practical importance by showing simple examples with the option value of investment alternatives and the valuation of related risk, the construction of optimum portfolio in technology investment alternatives.

• 한국정보디스플레이학회:학술대회논문집
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• 2009.10a
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• pp.7-7
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• 2009

This presentation will introduce Merck's investments for business to support the future market growth as "trendsetter contributor". As the world's oldest phamaceutical & chemical company, Merck has made the seamless investment for innovation. The investment for the new technologies is being continued for new LC materials, OLED material, organic electronic materials for flexible display, more environment friendly products of cell Etching Solutions to Solar Cell makers and variety of high-efficiency phosphors for LED applications. These investment portfolio is well in line with future business environment driving for eco-friendly, thin, fast, low power consumption."

• Korea Trade Review
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• v.44 no.5
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• pp.143-159
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• 2019

This study explores the relationship between outward foreign direct investment (FDI) and innovation in 61 industries of Korea between 1999 and 2016. In order to mitigate the endogeneity problem due to potential reverse causality between FDI and innovation, we use the GMM (generalized method of moments). Our results are as follows. First, FDI has a positive effect on innovation. A possible explanation is that through FDI, multinational companies may assimilate host countries' technologies and knowledge by learning, and then recreating new technologies. Furthermore, this positive effect appears greater, as industrial competition becomes fiercer. This result provides empirical evidence that by recreating technology and knowledge learned through FDI with their own intangible assets, such as patents, they may gain a competitive edge over competitors. Second, this study confirms the greater positive effects of FDI in developed countries, as well as countries with higher technology levels. Finally, strategic asset seeking FDI has the greatest positive impact on innovation in Korean industries. In summary, our findings provide empirical evidence that Korean multinationals can learn technology and knowledge of host countries through FDI to secure a competitive edge in the Korean market.

• Journal of Korea Technology Innovation Society
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• v.6 no.3
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• pp.328-344
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• 2003

This paper is aimed at analyzing the effect of Information Technology (IT) investment on the output growth and Total Factor Productivity (TFP) of Korean stock industry. Data on 24 stock firms for the eleven years (1991-2001) are used for the analysis. It is identified that there are both direct and indirect impacts of IT investment of the Korean stock industry on output growth. The total effect on output growth is 1.34 percentage point per year, which divided into a direct effect of investment in IT on the output growth is 1.97 and an indirect effect on the TFP is -0.63 percentage points per year. Results show that IT investment cannot contribute to increased stock industry productivity. Therefore, the Korean stock industry has not benefited from increased investment on IT in increasing productivity, implying the so-called productivity paradox has existed during the period.

• Proceedings of the Korea Technology Innovation Society Conference
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• 2001.05a
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• pp.141-158
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• 2001

This paper examines the causality issue between telecommunications investment and economic growth for South Korea by applying recently developed time series techniques. Tests for unit roots, co-integration, and Granger causality are presented. The results show that hi-directional causality runs from telecommunications investment to economic growth for South Korea. This means that increased telecommunications investment directly affects economic growth and an increase in real income also influences telecommunications investment. The study also discusses the implications of the results for addressing telecommunications policy in South Korea.

• Journal of Korea Technology Innovation Society
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• v.6 no.3
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• pp.279-297
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• 2003

The purpose of this paper is to analyze the determinants of company R＆D investment with zero observations by using the data of R＆D Scoreboard published by Ministry of Science and Technology(2002). Conventional parametric approach to dealing with zero investments is not robust to heteroscedastic and/or non-normal error structure. Thus, this study applies symmetrically trimmed least squares(STLS) estimation as a semi-parametric approach to dealing with zero R&D investments. The result of specification test indicates the semi-parametric approach outperforms the parametric approach significantly. Moreover, the results of the study provide various implications as summarized below. The R&D investment of IT company is larger than that of non-IT company. The R&D investment has a positive relation to foreigners' investment ratio. The higher degree of financial self-reliance is, the larger the R&D investment is. Firm size variables such as sales amount and the number of workers are positively related to R&D investment. The sales elasticity of R&D investment is larger than one. However, the workers elasticity of R&D investment is smaller than one.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.17 no.2
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• pp.65-80
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• 2022

Despite the uncertainty and risky factors of startups, the special and critical role of accelerators in carrying out professional nurturing and investment for them is becoming increasingly significant in the startup social-system. However, academic research on investment determinants that have a profound impact on the survival of accelerators is lacking, and there are only a few empirical studies on the classification and importance of factors, and they do not enjoy the benefits of theoretical studies. This study proposes a business model innovation framework based on the business model innovation theory that reflects the nature and properties of startups that are investment targets of accelerators and derives 12 investment decision factors. The framework defines that the target, direction, and performable force of startup innovation are a business model, strategy, and dynamic capability. Besides, the framework analyzes the investment decision factors of the existing accelerators based on the business model innovation framework to verify the suitability and sufficiency of the composition. As a result of the analysis, first, most of the items were faithfully composed from a static point of view of business model innovation, but it was found that the factors related to the core activities to evaluate the activity and customer relationship were insufficient. Second, from the strategic point of view, the necessity of developing factors that can encompass the definition and content of core resources, which are internal strategic factors, was raised. Third, from the dynamic point of view, it was found that many of the investment determinants of accelerators were concentrated on the lower level of dynamic competencies. This can be judged as a result of reflecting the characteristics of a startup that needs to develop a solution with few resources and a small number of team members. In addition, the roles and interrelationships between each factor are not clear, thus it was found as a limiting point for startups to view and evaluate the direction and process in which startups dynamically innovate their business models. This study is considerably differentiated in that it provides a business model innovation framework and offers a theoretical basis for investment determinants by deriving the investment determinants of accelerators based on the framework and design the foundation for subsequent research. The business model innovation framework presented in this study has great implications in that it contributes to the achievement of startups, accelerators, and startup support organizations.