Typology of R&D Service Firms and Customized Policy Suggestions in Korea

This paper originates from the questions concerning why Korea has had difficulties in boosting R&D service industries regardless of government efforts over a decade. We first review the intrinsic nature of the R&D services and set up four criteria such as establishment type, diversification of business models, coverage of client firms, and role of R&D service firms as innovation drivers and IP strategies, that will be used in interviewing and analyzing R&D service firms. Second, we carry out in-depth interviews of eighteen R&D service firms to understand business behaviors and relevant characteristics. Finally, we identify five groups of R&D service firms and conclude that differentiated polices have to be implemented according to the groups for promoting the industry effectively.