• Proceedings of the Technology Innovation Conference
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• 2001.06a
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• pp.117-130
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• 2001

R&D is the core competence of an enterprise. Furthermore, R&D requires huge capital investment and has very risky characteristics. Therefore, to be successful in R&D process, several approaches of engineering economics are used prior to decision-making. Until now, typical approaches of engineering economics such as NPV(net present value) or DCF(Discounted cash flow) have been used. But, they cannot properly capture managerial flexibility to adapt and revise later decisions in response to unexpected market development. In a constantly changing and always uncertain marketplace, managerial operation flexibility and strategic adaptability have become vital in order to successfully capitalize on favorable future investment opportunities and limit losses from adverse market development. For the alternatives of conventional static decision-making approaches, new concept of using real options is introduced. Real option theory is based on financial option's characteristics and checks every revision interval whether situation have changed favorable to decision maker or not. In advantageous situation, the decision maker has only to go on. In contrast, with unfavorable situation, he abandons the investment immediately. In this aspect, real option model is more suitable in very uncertain and dynamic business environment in that it can provide the opportunity to cope with flexibility. This paper suggests efficient and effective R&D investment strategy by using real options model. In addition, this paper compares financial options and real options.

• Industry Promotion Research
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• v.8 no.2
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• pp.11-19
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• 2023

The purpose of this study is to analyze the effect of economic uncertainty on business innovation. To this end, Ahir et al. (2018) World Uncertainty Index (WUI) is selected as a proxy for economic uncertainty, while total R&D investment (RD), capitalized R&D investment (RD_A), expensed R&D investment (RD_E), and the proportion of capitalized R&D investment to total R&D investment (RD_R) are selected as variables representing business innovation. The research findings showed that economic uncertainty (WUI) had a statistically significant positive (+) relationship with total research and development investment (RD), asset-based research and development investment (RD_A), and the proportion of asset-based research and development investment (RD_R). This relationship remained the same even after controlling for managerial opportunistic accounting behavior (DACC; discretionary accruals). These findings suggest that companies focus on research and development investment as an opportunity for management innovation even in the face of economic uncertainty. The results of this study are significant in demonstrating the validity and effectiveness of government support for industrial promotion under economic uncertainty.

• Journal of the military operations research society of Korea
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• v.30 no.1
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• pp.135-152
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• 2004

Ever since Benoit's(1973, 1978) study, the relationship between defense spending and economic growth has been the subject of extensive empirical works. While a number of studies have reported that higher defense expenditure stimulate economic growth, many other studies have reported that an increase in military burden may hinder economic growth. To the extent that countries differ substantially in socioeconomic structures, the effects of defense spending cannot be generalized across countries. In this paper, Granger causality tests are performed between Korean defense expenditure and economic growth, consumption, investment, inflation and unemployment rate during the period from 1970 to 2002. The results show that Korean defense expenditure did not affect economic growth and unemployment rate. However, Korean defense expenditure caused consumption and inflation to decrease and investment to increase. On the other hand Korean defense expenditure was not Granger-caused by economic growth, consumption, investment, inflation and unemployment rate. In conclusion, the opportunity cost of Korean defense expenditure seemed to be relatively moderate considering Korean security environment. Even if it was not statistically significant, Korean defense burden at least did not bother economic growth.

• Asian Journal of Innovation and Policy
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• v.6 no.2
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• pp.225-244
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• 2017

When evaluating the economic value of technology or business project, we need to consider the period and cost for commercialization. Since the discounted cash flow (DCF) method has limitations in that it can not consider consecutive investment or does not reflect the probabilistic property of commercialization cost, we often take it desirable to apply the concept of real options with key metrics of underlying asset value, commercialization cost, and volatility, while regarding the value of technology and investment as the opportunity value. We at this moment provide more elaborated real options model with the effective region of volatility, which reflects the uncertainty in the option pricing model (OPM).

• Journal of Navigation and Port Research
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• v.46 no.5
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• pp.427-434
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• 2022

The purpose of this study was to analyze whether the disposition effect, a behavioral finance theory, exists in decision-making for ship investment. A case study was adopted as the research methodology, and data obtained through narrative and questionnaire responses on decision-making for ship sales were analyzed from a behavioral finance perspective. The analysis found that the disposition effect had an impact on the decision to sell a vessel. The narrative responses revealed that some shipping companies tended to miss the opportunity to maximize ship sale profit because they sold their vessels readily and quickly before the price of the vessels had risen sufficiently. The questionnaire survey results indicated that the majority of the survey respondents chose to sell a ship whose price had risen slightly from the initial purchase price. Managers in charge of ship investment should examine whether the disposition effect exists in their decision-making when selling a ship.

• The Korean Journal of Community Living Science
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• v.16 no.1
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• pp.37-47
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• 2005

Education has been emphasized as one of tools of realizing social equality, which has its base on the ideology of equal education opportunity. The Opportunity level of adult education is important in the meaning of social equality. but these days It is being inequality. so The objectives of this study were 1) measuring the opportunity level of adult education in Korea, 2) analysing the difference adult education level by gender, regions, 3) making out the gap of the its level by social educational agencies, 4) to suggest the way to improve the opportunity level of adults educations between adults by gender, regions. The followings are the results from the study: Adult education participation level were lower. Adult education participation level per adult education type showed higher participation at private institutes, lower at cultural center of community and school's human and material resources are not properly utilized in adult educational activities. By adult education participation level per gender and location, women have a higher participation level then men, and urban areas have a higher participation level then rural areas. In case of location, environment variables is most explanatory in adult education participation level. To strive for methods to activate school-oriented adult education activities and to develop political solution to ease the resources gaps for adult education investment among regions in order not to deepen environment gaps of adult education between urban and rural areas. For adult education activation, institution and bodies in charge of adult education should expand and discover hardware and develop and distribute software. Also, adult education specialists who operate and manage these hardware and sofeware efficiently should be recruited.

• The Korean Journal of Applied Statistics
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• v.27 no.1
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• pp.123-132
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• 2014

Inflation uncertainty is known to have deleterious effects on facilities investment by disturbing the corporate decision on the opportunity cost of investment. In this paper, we test the validity of this hypothesis in Korea by estimating the inflation uncertainty with both a time-varing parameter model with GARCH disturbances and the relative price volatility and then, estimate the facilities investment equation which includes those uncertainty indicators. The uncertainty indexes estimated by the above-mentioned methods continue to fluctuate even after the inflation rate has dropped dramatically reflecting the structural changes of Korea's economy since the financial crisis in 1997. As a result of estimation of the investment equation by both OLS and GMM, we find the inflation uncertainty has a negative effect on facilities investment with a statistical significance. Moreover, by means of Markov-switching regression model utilized to verify the non-linearity of this relationship, we draw a conclusion that this negative effect of inflation uncertainty heightens asymmetrically during the downturn periods of business cycle.

• 한국사회복지학회:학술대회논문집
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• 2004.06a
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• pp.3-50
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• 2004

${\cdot}$ Recent social policy and labour markets debates in Europe, responding to the difficulties faced by the traditional neo-Keynesian welfare state settlement, stress the value of positive investment alongside de-regulation and greater flexibility as a way of achieving both economic and social goals. ${\cdot}$ Patterns of policy reform are complex and reflect differing national circumstances. A general move towards deregulation, constraints on entitlement to passive benefits, programmes to enhance employment, particularly among high-risk groups such as single parents and young people, targeted subsidies for low earners and casemanagement may be identified. ${\cdot}$ In relation to investment in education, research and development and combined training and benefit programmes to enhance mobility between jobs the picture is less clear. Education standards continue to rise, but research and development spending stagnates and few countries have developed substantial ‘flexi-curity’ programmes to support job mobility. ${\cdot}$ The labour market tradition in much of Europe has been one of conflict between labour and employers. As labour grows weaker, new approaches develop. These tend to stress productivity agreements and greater flexibility in work practices within firms and reforms to passive social security systems more broadly, but movement to support the more challenging investment and flexi-curity policies is slow. ${\cdot}$ In general, social and labour market policies in Europe stress deregulation and negative activation more strongly than social investment and ‘flexi-curity’. The countries with high growth and employment achieve that goal by different routes: Sweden has a closely integrated social democratic corporatism with high spending on benefits and training programmes and the UK a more liberal market-oriented system, with lower spending, highly targeted benefits and less mobility support. ${\cdot}$ Europe has something to learn from Korea in achieving high investment in human capital and R and D, while Korea may have something to learn from Europe in social investment, particularly flexi-curity and equal opportunity policies.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.13 no.6
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• pp.27-38
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• 2018

The purpose of this study is to find out common investment decision factors for CVC's invested technology-based startups and analyze them. We examined 17 CVCs that invested in technology startups for three years and six months from 2015 to June 2018. As a result, the final 9 CVCs that can be used in this study were confirmed and 188 companies were analyzed. This study was conducted as a case study to propose and demonstrate CVC investment objectives and investment decision factors analysis model. The results of this study are as follows. First, CVC focused on strengthening investment. Second, In 2015, Invested in an average of 19 months of technology-based startups. In recent years, we invested in 36 months of proven technology-based startups. Thirdly, ICT service was the main business type of the invested startups. Fourth, the investors were concentrated on the stage of Series A~B. It is observed that CVC investment determinants have a significant impact on product or service and parent company relations. In addition, it was found that factors such as innovation, business planning competency, enterprising, strategic competency, leadership, and opportunity recognition competency were influential factors for the startups of invested companies and it was found that these factors are important for CVC investment decision. Understanding of CVC investment determinants presented in this study is based on the establishment of the investment process of the investee, entrepreneurship and management education program. The results of this study can be applied to the selection of excellent startups, entrepreneurship education programs, mentoring, development of coaching guidelines, and establishment of investment process of other investment institutions when investing in CVC.

• Proceedings of the Korea Technology Innovation Society Conference
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• 2005.05a
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• pp.46-59
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• 2005

After the IMF jurisdiction period, the Korean economy experienced a venture boom. Korean venture enterprises had been recognized that high profitable and high technology capacity based. These ventures also have contributed to national added value tolerably. In particular, Korean information technology (IT) venture companies got away the order of economy concentrated big companies, which were taken the opportunity of new economy to make suggestion of the future courses and to open an e-Korea era. However, IT ventures firms or dotcom enterprises have had difficulties through sinking down their bubbles and slumping technology sector from the first half of the 2000. In consideration of Korea IT venture companies' conditions, Korean government introduce new national vision in order to go ahead of intelligence based society form knowledge based. Korea is planning new investment to meet with the challenge of globalization proactively by national band named u-Korea. As following a step in IT infrastructure, it will give Korean IT ventures new demand creative technologies and services by new technological windows of opportunity. This situation is expected that will become an economic take-off. This paper will look for the way to stimulate Korean IT ventures' competence and present new frontier of IT ventures turnaround.