The Effect of Government R&D Support on the Exploratative Activities of the Firm in Korea

정부의 기업 R&D 지원이 기업의 탐색적 활동에 미치는 영향의 실증 분석

  • 윤지웅 (경희대학교 정경대학 행정학과) ;
  • 윤성식 (국회예산정책처)
  • Received : 2012.10.24
  • Accepted : 2013.03.26
  • Published : 2013.03.30

Abstract

This paper empirically examines the effect of government R&D support on the performance of the firm in Korea. In particular, we examine to what extent the government R&D support affected the firm's exploratative performance. Using a novel dataset combining patent information with national government R&D funding data and firm performance indicators from 2005-2008, we construct and run an empirical model where a firm's exploratative activity, measured by a firm patenting in a different field, is a function of the government R&D support a firm receives. The empirical results show that the government R&D support has a positive effect on the firm's exploratative activity. Especially, this effect is stronger for the small and medium size firms, while large firms are relatively relying on their own R&D funding for exploration. This result indicates that the government needs to focus more on R&D funding for small and medium size firms, if it wants more exploratative outcomes to enhance potential resources for economic development.