• Journal of Technology Innovation
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• v.30 no.1
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• pp.57-104
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• 2022

The government has supported the innovation of private firms by intervening the market for various purposes, such as preventing market failure, alleviating information asymmetry, and allocating resources efficiently. Although the government's R&D budget increased rapidly in the 2000s, it is not clear whether the government intervention has made desirable impact on the market. To address this, the current study attempts to explore this issue by doing a systematic literature review on foreign and domestic papers in an integrated way. In total, 168 studies are analyzed using contents analysis approach and various lens, such as policy additionality, policy tools, firm size, unit of analysis, data and method, are adopted for analysis. Overlapping policy target, time lag between government intervention and policy effects, non-linearity of financial supports, interference between different polices, and out-dated R&D tax incentive system are reported as factors hampering the effect of the government intervention. Many policy prescriptions, such as program evaluation indices reflecting behavioral additionality, an introduction of policy mix and evidence-based policy using machine learning, are suggested to improve these hurdles.

• The Journal of Small Business Innovation
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• v.19 no.3
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• pp.1-16
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• 2016

Korean government had used public 'credit guarantee schemes' (CGS) as a counter-cyclical measure. However, it is still controversial about the effectiveness of policy financing on the SMEs. Criticism on policy financing involves the argument that supporting enterprises hampers competition and innovation of SMEs by increasing their dependence on the government and delays the exit of marginal firms. In this paper, we investigate how to effectively build up the rationale of running public CGSs. At the same time, we propose the ways to coexist of public credit guarantee and market-based private finance system for SMEs. First, CGS, as a counter-cyclical function, must coexist with the private financial system by compensating the market failure caused by pro-cyclical behavior of the private financial market. Second, CGS has the comparative advantages, compared to both the interest rate policy of the central bank and fiscal policy of the government. The credit guarantee is the symptomatic treatment that could revitalize the economy shortly by providing liquidity. Also, knowing that CGS is provided based on the leverage ratio defined by outstanding guarantee divided by capital fund, public 'credit guarantee' (CG) has an advantage that is free from the risk of government deficit. Third, the reason for existence of the CGS should be founded in supporting services for SMEs, available only in a public sector that is difficult to expect from private banks. In this regard, it is desirable to strengthen the publicness of credit guarantee over the support for start-ups, growing companies, the improvement of productivity, increase of exports, a long-term investment in facilities, the employment-creating businesses, and innovative enterprises.

• Journal of Environmental Policy
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• v.5 no.2
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• pp.69-93
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• 2006

This paper considers major three steps to arrive at accurate baseline emissions against which actual emission reductions attributable to CDM projects are accounted for. The first step is to select most likely baseline scenario among plausible alternatives. Then, the additionality of the project in question would be assessed by demonstrating that the project is not included in the baseline scenario selected. Finally, baseline emissions are calculated under the baseline scenario. In this paper, these three steps are integrated into a single flow chart in order to help understand the procedures for application of a baseline methodology better. Following the flow chart, a landfill gas-to-electricity project in Korea is analyzed as a case study. In consequence, this paper concludes that landfill gas-to-electricity projects in Korea have great potential for CDM projects, and it could also be concluded that data availability and reliability are a prerequisite for successful application of baseline methodologies for landfill gas projects to Korean specific situations.

• Journal of Convergence for Information Technology
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• v.10 no.1
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• pp.1-12
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• 2020

The Government provides a financial assistance to stimulate firm R&D and innovation activities. Previous papers on the impact of public subsidies on firm R&D investments mainly had a focus on an individual policy tool regardless of potential impacts of other policy instruments. This study addresses this gap by examining the effects of policy mix regarding a subsidy and a tax credit. The empirical analyses from fixed effect model using Survey on Technology of SMEs 2015-2017 revealed valuable points. First, policy mix induces more R&D investment of SMEs, which in turn, shows a complementary relationship between two instruments. Second, even if impact of tax credit controlled, subsidy is positively associated with SMEs R&D investment. These findings justify policy mix interventions to promote SME R&D activity. Moreover, grants can be applied as a more useful policy tool for SMEs that are constrained by resources and capabilities.

• Journal of Convergence for Information Technology
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• v.12 no.3
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• pp.222-235
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• 2022

The Government provides a financial assistance to stimulate firm R&D and innovation activities. Previous papers on the impact of public subsidies on firm R&D investments mainly had a focus on an individual policy tool regardless of potential impacts of other policy instruments. This study addresses this gap by examining the effects of policy mix regarding a subsidy and a tax credit. The empirical analyses from fixed effect model using Survey on Technology of SMEs 2015-2017 revealed valuable points. First, policy mix induces more R&D investment of SMEs, which in turn, shows a complementary relationship between two instruments. Second, even if impact of tax credit controlled, subsidy is positively associated with SMEs R&D investment. These findings justify policy mix interventions to promote SME R&D activity. Moreover, grants can be applied as a more useful policy tool for SMEs that are constrained by resources and capabilities.

• Journal of Environmental Policy
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• v.8 no.1
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• pp.1-30
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• 2009

Emission trading schemes, exemplified by the EU Emission Trading Scheme, have been playing active roles in mitigating greenhouse gas emissions since the Kyoto Protocol employed an emission trading as one of the cost-effective mechanisms. The objective of this study is to investigate potential integration of forestry offsets in designing an emission trading scheme in South Korea. First, the study found feasible scopes in which forestry sectors can take part by analyzing five emission trading schemes: EU Emission Trading Scheme, Chicago Climate Exchange, New South Wales Greenhouse Gas Abatement Scheme, New Zealand Emission Trading Scheme, and Regional Greenhouse Gas Initiative. The rationale of including forestry offsets in a domestic emission trading scheme was derived from the fact that forestry offset credits can provide cost-effective ways for market participants to commit their emission targets and expand abatement activities through reducing greenhouse gases in other geographical locations as well as other industrial sectors. Even though forestry offset credits have risks induced by their technical complexities in terms of accounting, additionality, and leakage, the integration of forestry offset credits into an emission trading scheme would be able to provide positive opportunities both to forestry sectors and other industrial sectors. In addition, there are technical questions which need to be answered in order to maintain these opportunities.