• Proceedings of the Korea Technology Innovation Society Conference
• /
• 2010.11a
• /
• pp.203-212
• /
• 2010

Examining the relation between market structure and the value of innovation is important for competition and STI policy. If the value is large in a specific industry structure, government may lead the industry to take that form to enhance innovation. Our simple calibration in the case of linear demand and constant MC results in the conclusion that the incentive for R&D in the case of major and minor innovation in Cournot competition is less than that of merger and cooperative R&D. This emphasizes again "necessary evil" as a monopoly for innovation.

• Asian Journal of Innovation and Policy
• /
• v.1 no.2
• /
• pp.148-167
• /
• 2012

This paper analyzes the impact of the change in telecommunication regulation changes including the unification of telecommunication service on network investment. The unification of telecommunication service plays a role of separating behavior regulation from entrance regulation and reducing entrance constraints. Therefore, it is expected that the market spillover effect is high through the improvement of behavior regulation. In addition, the effects of the other regulation changes in the 2010 Telecommunications Business Act revision are analyzed. This paper discusses critical factors affecting the decision making process in respect to the firm level and analyzes the impact path guiding investment and innovation. The key findings are as follows. First, the impact of entrance deregulation depends on the intensity of deregulation. If the intensity is not high, this regulation increases the incentive on investment and innovation. However, if the intensity is high as shown in abolishing of licensing, it affects the incentive negatively. Second, if interconnection regulation focuses on existing facilities or the intensity is not strong, this light handed regulation might increase investment and innovation. However, if interconnection obligation is expanded to the facility not constructed or the facility applying new technology, this regulation might deteriorate investment. Third, price deregulation increases the competition of service but it also increases the business opportunity, which means positive effect on investment. Finally, the paper proposes the guideline for telecommunications policy.

• Journal of Korea Technology Innovation Society
• /
• v.14 no.2
• /
• pp.246-259
• /
• 2011

Examining the relation between market structure and the value of innovation is important for competition and STI policy. If the value is large in a specific industry structure, government may lead the industry to take that form to enhance innovation. Our simple calibration in the case of linear demand and constant Me results in the conclusion that the incentive for R&D in the case of major and minor innovation in Cournot competition is less than that of merger and cooperative R&D. This emphasizes again "necessary evil" as a monopoly for innovation.

• Journal of Technology Innovation
• /
• v.7 no.2
• /
• pp.57-70
• /
• 1999

• Journal of Technology Innovation
• /
• v.5 no.1
• /
• pp.181-205
• /
• 1997

There has been considerable controversy over the impacts of the tax credit on R&D expenditures in many countries. Korea has adopted various kinds of tax credit system to stimulate private firm' R&D expenditures. Korean government, Recently, is trying to reform tax system to reduce tax credit programmes according to Uruguay Round agreement and in line with OECD policy standards. The purpose of this paper is to analyze the effectiveness of current tax credit system on technology innovation in Korea and derive some policy implications over tax reform. In this paper, firstly, I investigate the size of tax reduction effects from each program in theoretical models and simulate the actual rate of individual tax incentive to a unit of R&D expenditure. I find that theoretically the reserve fund for technology development program has given the largest tax reduction effects to private firms irrespective of the R&D incentive system reform. Tax credit on R&D expenditure also has been very effective instrument to firm's tax reduction. Secondly, I try to measure the effectiveness of tax credit through the estimation of effective margianl tax rate between with the system and without the system of credit on R&D expenditure during the tax credit reform periods. I find that the tax credit on R&D has lowered firm's investment cost since the system introduced. I also have strong results that there has been a positive relation between the fluctuation of firm's R&D expenditure and the change of effective marginal tax rate. I suggest that it is better to sustain the system of tax credit on R&D for a while to increase firm's R&D expenditure.

• Journal of Korea Technology Innovation Society
• /
• v.7 no.1
• /
• pp.1-20
• /
• 2004

In this paper, we try to explore the nature of open source software development process. The process involves peculiar characteristics which seem to defy the traditional economic reasoning for technology policy. Based upon the comparative case study of open source software development process with the two innovation processes adopted from literature on economic history, we argue that technology policy should strike the balance between provision of innovation incentives and voluntary disclosure of information.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.21 no.46
• /
• pp.1-18
• /
• 1998

The purpose of this study is to identify critical factors facilitating JIT innovation process for Korean component manufacturers. In order to find the answers to this issue, this study has empirically studied the corelations among JIT innovation culture, competitiveness, and incentive factors. Cluster, ANOVA, and regression analyses were performed from 92 collected survey data. It has found that Korean component manufacturers strongly rely on their inner JIT innovation culture to improve competitiveness. It has also found that the organizational resource and managerial priority should be focused on establishing clear goals and objectives for improvement, and creating open atmosphere with respect to operational process.

• Proceedings of the Korea Technology Innovation Society Conference
• /
• 2005.05a
• /
• pp.265-274
• /
• 2005

• Asian Journal of Innovation and Policy
• /
• v.10 no.3
• /
• pp.274-293
• /
• 2021

Utilizing outside knowledge for innovation is an important task for companies in the competitive economy. Due to the rapid advance in the internet communication technology, the number and quality of innovation sourcing methods are increasing. We select co-creation, personalization and in-house R&D as the representative forms of innovation sourcing and suggest a game theory model that enables the comparative analysis between them. The decision and surplus outcome of the innovation mechanisms are compared under various settings of the input parameters of the model. The stakeholders voluntarily participate into all mechanisms when the product price is moderately high and the participation cost is low, while co-creation is the only feasible one when the product quality is niche. When the participation cost is relatively high, personalization outperforms co-creation.

• Proceedings of the Technology Innovation Conference
• /
• 2005.02a
• /
• pp.42-56
• /
• 2005

Firms cooperating in R&D face a moral hazard problem, because with R&D effort not being observable each partner will focus on its own profit when choosing its effort level. This paper aims to explain the use of optimal license contract for R&D cooperation such as cross-licensing agreement. We argue that in the situations of asymmetric information, the optimal incentive scheme that can solve moral hazard problem is . a linear function of the likelihood ratio. Especially in the case of parallel research, each firm has an extra incentive for cooperative R&D effort, given by the license fee that considers the profit of the cooperating firm, which solely depends on his R&D success if the cooperating firm fails.