• Korean System Dynamics Review
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• v.10 no.1
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• pp.5-32
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• 2009

This paper revisited the key advances on System Dynamics modeling about traditional macro-economic models and economic growth structures, and then tries to elaborate a new model based on the endogenous growth theory that incorporates new growth factors, relevant to knowledge/technology as well as the Environment, into traditional growth models. Accordingly, the new model augments the acceleration and multiplier loops and the balancing ones representing market clearing mechanism with a simple numerical example. The authors thus provides macroeconomic System Dynamics analysts with a milestone to model macro-economic structures reflecting on traditional and cutting-edge theories on sustainable economic growth and general equilibrium modeling.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.3
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• pp.141-149
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• 2019

The paper proposes a knowledge innovation performance model by the dynamic data envelopment analysis with slacks-based measure approach for evaluating the effectiveness of 30 regional knowledge innovation activities in China from 2010 to 2016. In recent years, China has paid more attention to knowledge innovation activities, as central and local governments have pushed on with their innovation projects by lots of investment whatever the difficulties may be. Decision-maker is usually interested in judge its knowledge innovation performance relative to target benchmark by exploring whether one provincial administration region performs better among others and/or if the growth of economy will be benefited greatly by the knowledge innovation activities. To acquire the managerial insight about this issue from a comprehensively designed performance evaluation model, knowledge innovation activity is conceptualized as an intertemporal production process. Invention patent and regional gross product are imposed on desirable outputs, highlighting the need for knowledge economy. The empirical result shows that knowledge innovation has a positive effect on economic development. At the same time, decision-maker should be interest in the economic effect of patents' type and quality. The government should then encourage new technical applications with greater commercial value from a market-oriented perspective, in order to benefit the most from the innovation process in the short-run.

• KDI Journal of Economic Policy
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• v.34 no.1
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• pp.87-133
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• 2012

This paper consists of two parts. The first part introduces a simple endogenous growth model. It is based on Romer(1990), but extends the original model by incorporating individual workers skill heterogeneity. Based on the heterogeneity, the model has a labor allocation mechanism between skilled (research) and unskilled (production) sectors. Different from Romer(1990), the labor allocation is determined by both demand and supply conditions of the economy. The endogenous growth model presented in this paper shows how the shape of the distribution of human capital affects on the labor allocation, hence on the employment structure, wage profile and economic growth. The model can be extended to an open economy. With the heterogeneity, the extended model explains distributional effect as well as growth effect of the economic openness. The second part provides empirical evidence in support of the extension part of the model presented in the first part. Based on the endogenous growth framework as proposed by Romer(1990) and Rivera-Batiz and Romer(1991), the model explains how economic openness affects labor allocation between skilled and unskilled sectors. According to the model, economic openness can affect labor allocation through two channels; knowledge spillover and specialization. First, the openness promotes knowledge spillover and hence increases the productivity of workers in the skilled sectors. This makes the economy employs more workers in the skilled sector. On the other hand, the openness causes global specialization which leads more employment in the skilled sector for the developed countries but at the same time, leads less employment in the skilled sector for the developing countries since the developing countries have comparative advantages in the unskilled sector. The empirical results obtained using cross country panel data in this paper support these two effects of knowledge spillover and specialization.

• Proceedings of the KSR Conference
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• 2008.11b
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• pp.762-769
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• 2008

Each nation of the world is competing aiming for the growth of economy and quality of life, and, knowledge based economic system is accelerated. So, R&D is continuously propelled for possession of technology is core in the knowledge based economic system. Our government is investing R&D but efficiency is the continuous theme of the study. Also, government's railway R&D made visible fruits and analyze that.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.29-35
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• 2021

This study discusses the effect of human capital and technology on economic growth in Indonesia using annual time series data over the 35-year research period (1984-2019). This study uses an autoregressive distribution gap to the cointegration approach to understanding the relationship between human capital, technology, and economic growth. Human capital is inherent in humans and becomes capital in providing the best performance that has an impact on their own income. We use the human capital framework in this study where education is one mechanism to increase human capital. Based on the results of our estimation, we find that the increase in human capital using the education mechanism affects economic growth. This shows the role of human capital investment is very important in economic growth. Technology shows a significant positive effect on economic growth. Increasing human resources and technology are important factors in efforts to increase economic growth in Indonesia. Educational development is the key to the success of increasing human capital and technological development because education plays a role in improving the quality of human resources. Increasing human resources here is in the form of increased knowledge, mastery of technology, innovation, and the ability to develop technology to encourage technology development.

• The Journal of Korean Institute of Communications and Information Sciences
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• v.38B no.10
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• pp.808-816
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• 2013

In recent years, the knowledge service industry is getting much attention in terms of the role as new growth driver and employment creation sector whereas the overall potential growth rate in Korea has been slowed due to reduced investment and employment in manufacturing sector. This study examines how the knowledge service industry contributes to economic development and employment creation by analyzing the structure transition pattern of the knowledge service industry from 1995 to 2010 and suggests, based on these results, some policy implications for the industry's development. It turns out that the knowledge service industry greatly contributes to total production increase and employment creation during the period of 1995 to 2010. Special strategy for increase in labor productivity will be required for the knowledge service industry to contribute consistently as growth driver and employment creation sector since production increase rate and growth contribution level have been gradually decreased while employment growth rate and its contribution level have been consistently increased in the knowledge service industry.

• Proceedings of the KSME Conference
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• 2007.05a
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• pp.485-489
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• 2007

Knowledge-based economy is the economy or economic structure based on production, accumulation and utilization of knowledge. With the emergence of knowledge-based economy, the importance to the corporate competitiveness of IP and IP-related activities has increased. This paper discuss the issues related to the mode of IP-related activities, including the comparison of SMEs and large firms. Especially, I focus on the role and impact of IP-related activities on innovation and growth of firm in machinery industry. The result of this study can help to set up strategy for supporting firm's technology innovation.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.9
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• pp.454-464
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• 2018

The OECD estimates that a high concentration of intangible capital is in the richest countries of the world. Studies show that intangibles have a positive relation with economic growth. However, different types of intangibles can have different impacts on economic performance. Therefore, this paper attempts to distinguish the differences within the intangibles in influencing economic growth by analyzing three different characteristics of the intangibles. Three main types of intangibles (computerized information, innovative property and economic competencies) are analyzed based on the degree of tacitness, the process of creation and diffusion, and the level of embedded value-added. This research uses Polanyi's classification of tacitness of knowledge, the Nonaka-Takeuchi Model and the "smiling curve" to find that not only investing more in intangible capital but also developing more "tacit" type of intangibles are important for economic growth.

• Journal of the Economic Geographical Society of Korea
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• v.20 no.2
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• pp.137-157
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• 2017

As unemployment rises and economic growth slows, interest in startups, which is considered to be the driving force of job creation, is increasing. This study aimed to analyze the employment effects of knowledge-based startups in South Korea. In particular, startups were divided into three categories (knowledge-based manufacturing, knowledge-based service, and other industries) and the region were divided into the capital region and the other regions. The result of the analysis, which used census on Establishments Data from Statistics Korea(KOSIS), showed that the employment effects of startups change in three steps over time. When new firms were created, employment increases instantly. However, as the competition among firms increases, some firms exit the market and employment decreases. In the long-term, some firms will survive the market competition and increase their firm size and the number of jobs they offer. The total employment effect was greater for knowledge-based startups than the other industries startups. The total employment effect of knowledge-based startups are 2.84%p for the period of 6 years. Startups in the Capital region showed higher employment effect than startups in other regions. This implies that in the capital region, employment increases more after the startups are created, but due to fierce competition, employment also decreases relatively more than it does in other regions. However, companies that survive competition create more employment. This study may give some policy implications that startup policies should be tailored to the startup's type and regional characteristics in order to achieve more effective job creation performance.

• Journal of Distribution Science
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• v.12 no.5
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• pp.93-107
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• 2014

Purpose - The pool of entrepreneurs with progressive qualities such as creativity and innovation was considered concurrently with such factors as work and capital that stimulate economic development and growth. This study aims to present a model to support the development of a strategic approach for achieving an overall academic entrepreneurship system in Iran. Research design, data, and methodology - The research design of this study is based on applied research because of its objectives, using principles and techniques formulated for basic research to solve operational and real organizational issues. This design also drives the method used, describing and interpreting the findings. Secondary data (library research) was used for this study's data collection. Because of this research's essential characteristics, no hypothesis is launched, and no research setting, questionnaire design, population or population sampling, validity or reliability tests, or statistical analysis are needed. Results and Conclusions - The model is created using a strategic approach acting in an octal setting comprising social, cultural, legal, economic, political, technological, competitive, and natural environments to present a conceptual framework for future studies.