• Journal of Technology Innovation
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• v.19 no.1
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• pp.29-53
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• 2011

This paper analyzes the effects of government-sponsored R&D on firm's employment and management performance, using the panel data of manufacturing firms in the area of Busan, Ulsan and Gyungnam. The paper applies PSM to estimate the treatment effects(ATT) without sample selection bias. The findings show that government-sponsored R&D in the area has positive effects on the participating firms' employment and R&D for several years after completing R&D projects.