• Korean Management Science Review
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• v.29 no.3
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• pp.169-182
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• 2012

This study examines the co-evolutionary process between open innovation and firms' absorptive capacity. The effects of open innovation can be maximized through the capacity to absorb the knowledge from the external sources such as universities, government-support research institute, and private R&D centers. This study used data of STEPI technology innovation survey conducted at 2002, 2005, and 2008 (3 points measures). The data were analyzed through a structural equation model. Results suggest that open innovation at t0 point influences positively the absorptive capacity at t1 point, which subsequently enhances the intention of open innovation at t2 point. This result suggests the existence of co-evolutionary process between open innovation and firms' absorptive capacity. When knowledge comes from universities, the co-evolution has sustained; whereas when knowledge comes from private firms' R&D centers, the co-evolution has not effected. Theoretical and practical implications are discussed.

• Asian Journal of Innovation and Policy
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• v.8 no.2
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• pp.302-324
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• 2019

Family business is the oldest and the most prevalent type of entity in the world. In India, 85% of the enterprises are owned and/or managed by families, contributing to two-third of GDP. Thus the survival of family firms, which also generates 79% of private sector employment, is of paramount importance. Effective succession planning and innovation to gain competitive edge are the two key ways to ensure family firm survival. In this paper, the interplay between family succession and innovation is qualitatively studied using case study approach. Successors and Predecessors are interviewed to gain insights in the areas of succession planning and innovation. It is observed that family succession has a positive relationship with innovation, i.e. the presence of founding family members in the ownership and/or management of the enterprise has a positive influence on innovation tendency of the family firms. The findings contribute to the family business literature on succession planning and innovation, and their inter-relationship.

• Journal of Technology Innovation
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• v.10 no.2
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• pp.19-44
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• 2002

All over the world, the attention on the exploitation of public research, which is mainly implemented by technology transfer, has increased in recent years. Licensing, which is one of representative mechanisms for public-to-private technology transfer, is accompanied by the frequent conflicts in negotiating a license payment between public research institutes (PRIs) and private firms. In spite of the body of literature on technology transfer in a licensing context, it focuses on contracts between private firms. Even the existing literature, which addresses public-to-private technology transfer through licensing, to our knowledge, has not yet formalized an established licensing model. This paper develops a mathematical model of public-to-private licensing, not hitherto tried by academics. The model addresses important issues to be applied comprehensively in licensing practice, such as determining a royalty rate, balancing between an initial payment and a running royalty, designing an inventor's incentive system, and setting a minimum payment as a screening criterion. The paper also provides reasonable management implications to controversial issues in technology transfer from PRIs to private firms, partly employing the comparative analysis between current stylized licensing practice and the one suggested in the model. We hope that study contributes to providing the foundation on which the theory on public-to-private licensing would extend to an in-depth level.

• Journal of Korea Technology Innovation Society
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• v.10 no.4
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• pp.706-726
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• 2007

This study attempts to empirically investigate the effects of government R&D subsidies on private firm's R&D investment in Korean industry. The R&D subsidy effect is defined as the average percentage change in firm's R&D expenditures between what was actually observed among firms that received a subsidy and what these firms would have spent had the subsidy not been received. To measure the effect we use Difference-in-Differences (DID) model which sign as to whether the relationship between government subsidies and private R&D investments is on stimulating or displacing private R&D expenditures. The differences between this study and previous studies are that we tries to measure the effect of Government R&D across various sited firm groups such as large, small & medium, and venture firms and we add one lag of the subsidy indicator in order to capture the effect of the subsidies on private R&D during 2 consecutive period. Empirically, a firm with government R&D subsidy increases its own R&D investment by 13.9%. Also on average, 1% of government R&D subsidy leads to 0.031% of private R&D increase. The main results of this study are as follows : First, Government R&D subsidies stimulate private firm's R&D expenditures. Second, Government R&D subsidies greatly increase (statistically significant) company financed R&D expenditures only for large firms but had no effect on the R&D expenditures of small & medium sized firms and venture firms.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.11 no.5
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• pp.1829-1837
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• 2010

During the last year, public expenditures which provided the central and local governments for boosting research and development (R&D) activities of the private sector has been constantly increasing. 17 percent of public total R&D expenditure supported to private sector and 9 percent of R&D expenditure in service sector were public R&D funding. However, studies evaluating the impact of public R&D subsidies are quite few. The aim of this study empirically investigate the average effects of public R&D subsidies on the innovation activities in private sector, specifically those engaged in Korean service firms by using Propensity Score Matching(PSM) method. The effect of R&D subsidies is derived from either qualitative and quantitative outcomes of innovation activities, which is defined as the difference between innovation outcome of the treatment group (receiving R&D subsidies) and that of the control group (non receiving R&D subsidies) after the matching method. As a result of empirical analysis, government R&D grants stimulate only firm-first innovation outcomes in service firms. It is represent that public R&D subsidies cannot be contributed to level of national innovation and the total amount of national innovation activities but can enhance firm competitiveness from increasing firm-first innovation activities.

• Journal of Korea Technology Innovation Society
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• v.9 no.2
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• pp.373-390
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• 2006

In knowledge-based economies, the facilitation of knowledge diffusion among R&D performing actors has become the most important factor for the growth of national science and technology. Korea has strived for revitalizing R&D partnerships between public and private sectors since 1970, but results of KIS (Korean innovation survey) data analysis show that R&D cooperation with public institute or academic sector are not a great help to Korean firm's innovation on the whole. Especially, in small and medium sized firm, R&D partnerships with public sector do not have positive influence on their innovation. This implies policies of activating R&D partnership should be formulated based on firm's cooperation demand. In addition to this, discriminatory cooperation plans between large firms and small and medium sized firms are needed to raise the effectiveness of R&D partnership.

• Journal of Technology Innovation
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• v.27 no.3
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• pp.27-52
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• 2019

This research studied the determinants of private R&D investment by examining the innovation strategies of 481 small and medium enterprises (SMEs, their employee size is 5 or more and less than 300) in Busan, South Korea. The data is derived from the Technology Survey of Small and Medium Enterprises in 2001 and 2003. Three explanatory variables for the innovation strategies are the R&D portfolio, the organization (personnel) for R&D, and the strategic role of CEO for innovation. The technological levels of industries are controlled in the linear regression model. The dependent variable is the total private R&D investment of a firm in the given fiscal year. The empirical results indicate that the private R&D investment positively correlates with the complexity of the R&D portfolio, the formal organization for R&D team, and the increase of R&D personnel. The formal organization for R&D team and the number of R&D personnel are correlated with the increase of private R&D investment across the four groups in the manufacturing sector but not in the service sector. These findings suggest that the innovation policy needs to target firms who have complex R&D portfolios, the formal organization of R&D teams, and sufficient R&D personnel in order to increase the private R&D investment of SMEs in regions, with consideration of industrial characteristics.

• Journal of the Korean Geographical Society
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• v.40 no.1 s.106
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• pp.63-77
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• 2005

Innovation, esp. technological innovation, in service sectors has drawn much attention as innovation-driven economy and service-led growth has been emphasized in the 21st century. This paper attempts to analyze the technological innovation from the perspective of geography and to understand the role of cooperative networks in the technological innovation. In sum, this study reveals that more firms in the Seoul Metropolitan Area (SMA) tended to succeed in the technological innovation in service sectors than those in the provinces. However, the difference originated from the difference in firms' internal capabilities, not from the difference in the external innovative capabilities represented by cooperative networks relevant to innovative milieu. In terms of cooperative partners, the fm in the provinces placed special importance on universities as cooperative partners, while the firms in the SMA put much emphasis on various types of cooperative partners. The cooperation with private partners was a statistically meaningful variable for the occurrence of technological innovation, regardless of firms' location. The cooperation with public partners proved to influence firms' application for the intellectual property right such as patents in both the SMA and the provinces.

• Journal of Korea Technology Innovation Society
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• v.15 no.3
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• pp.649-674
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• 2012

The purpose of this study is to investigate the effects of public R&D subsidies on private R&D. We have analyzed rationales for the public R&D subsidy from different perspectives. On the basis of literature review, a two step research model is constructed: participation phase (when firms benefit from public subsidies) and decision phase (when firms make decision on additional R&D investments). Using propensity score matching(PSM) method, we compare the potential outcome of the treated group to a matched controlled group of non-subsidized firms. The data used in this paper was collected from various sources. The Korean Innovation Survey 2008(manufacturing sector) is a main source of data. Financial data such as revenue, asset and capital stock, and number of employees were supplemented from the Nice Information Service KIS Value database. The R&D survey, conducted by MEST(Ministry of Education, Science and Technology) each year, was also used for the R&D expenditures of the manufacturing firms. This study comes up with the following empirical results. First, a firm's innovation capability, financial constraints, and sector appear to influence the selection of firms who were benefited from government's financial supports for R&D. Second, empirical results show that public R&D funding complements private investment on average and appear to have perpetual effects on the following year. Finally, sectoral difference in the effect of public subsidies on firms' R&D investment was confirmed. In addition, SMEs show more positive effects than large firms.

• Journal of Technology Innovation
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• v.22 no.4
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• pp.57-88
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• 2014

The 'Grand Challenge' in the global level raises fundamental questions on the role of private firm as a profit maximizer. From the new perspective, firms are recognized as a social entity with social and environmental responsibility. Particularly, the importance of transition-orineted firms, which pursue an objective of socio-technological system transition, have increased. These environmental changes request a new understanding on the identification of firms and the evolution of sustainable business model from the technological innovation perspectives. This paper aims on the new understanding on the motivation of firms who participated on the sustainable system transition and the proposal of 'transition-oriented firms' concept. Based on literature survey, this paper reviews the role of firms in the process of socio-technological system transition, the cases of transition-oriented firm, the types of sustainable business models and their strategies.