• Journal of Technology Innovation
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• v.24 no.3
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• pp.81-105
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• 2016

The purpose of this study is to estimate the cost-saving effect of R&D investment in the ICT industry. As is well known, the R&D investment induces both the product innovation and the process innovation, in turn leads the effect of creating profit and cutting cost. However, it appears that studies concerned with the cost-saving effect of R&D investment have been unproductive, while most existing studies concentrate on the topic involved with the creating profit of R&D investment. Therefore, we extend the effect of R&D investment to a framework of the cost-saving focusing on the ICT industry. To empirically analyze the effect, we built a simultaneous three-equation model comprising a translog cost function and two cost share equations, and employed the SUR analysis. As a result, we found out that the cost-saving effect on the total cost is statistically significant. In addition, we examined relationships between the R&D investment and each cost of production elements. The results show that on the one hand, the R&D investment and the intermediate good cost have the substitution relationship. On the other hand, the complementary relationship is observed between the R&D investment and each labor or capital cost.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.8 no.4
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• pp.946-951
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• 2007

R&D institutes, supporting development in industry, are required to provide an economic basis of their R&D investments. In this paper, we apply prospective cost-benefit analysis to evaluate the economic impact of R&D investments. We compute main metrics with cost and benefit estimated via counter-factual evaluation model. Among many projects of KRISS to improve measurement reliability, three projects are evaluated by applying prospective cost-benefit analysis.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.17 no.4
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• pp.615-621
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• 2016

This study examines whether there is agency cost in a public R&D subsidy program by applying agency theory. If there is agency cost, the composition ratio of the government subsidy and the firm's own R&D fund would have a significant (-) effect on technological performance. Companies that received a public R&D subsidy in Korea from 2000 to 2009 were selected as a sample. Frequency analysis and multiple regression analysis were used. The independent variables was the ratio of public R&D subsidy cost to the Firm's own R&D cost, and the dependent variables were the number of patent applications and the number of patents registered. The control variables were firm size and R&D cost. The results show that there are agency problems in the government-sponsored R&D system. A future study is needed to examine how much agency problems deteriorate the efficiency of the system.

• 한국벤처창업학회:학술대회논문집
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• 2009.10a
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• pp.111-138
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• 2009

This research focuses on what factors determine firm's decisions on R&D outsourcing and how R&D outsourcing affect R&D performance. In recent years many firms outsource R&D activities instead of internalizing it. Thus, further investigation is necessary to find out this recent trend. Based on several theoretical background the study developed three determining factors of R&D outsourcing which are transactional level, firm level, and risk level. Transactional level composes of independent variables such as R&D cost saving, asset specificity and uncertainty which mainly comes from Transaction Cost Economics theory. Firm level composes of openness to technology from outer source, R&D capability, and outsourcing experience. Risk level composes of technological risk, cost-related risk and managerial risk. The result shows that R&D outsourcing is significantly related to cost saving aspect, low asset specific firms, firms without solid technological background, firms which are open to external technology, firms with other types of outsourcing experience, and firms which take technological risks. However, proposed relationship between degree of R&D outsourcing and R&D performance found out to be insignificant. This research is contribute to the field of outsourcing study since it will give guidance to managers who need to make strategic decisions on R&D outsourcing activities.

• Journal of Technology Innovation
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• v.19 no.2
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• pp.25-51
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• 2011

This study examine the firms fund R&D expenditures through cash and cash equivalents under financial distress in order to avoid huge adjustment costs that can be brought after R&D expenditures cut-down. Other study divided the firms' financial condition by only firms' year. This study identifies the firms' financial condition not only by a firm's year but also by firm size and Altman's Z-Score and K-Score. The results show that there are statistically negative relationship between R&D expenditures and cash and cash equivalents when firms are under financial distress. The results are same regardless of criteria of classification of firms' financial condition, which is consistent to the hypothesis. Young and small firms and firms with moderate possibility of bankruptcy fund R&D expenditures through cash and cash equivalent compared to the other firms. We can find the new evidence when we classify the firm by Z-Score and K-Score of Altman. The firms with high possibility of bankruptcy can not fund for R&D activities from cash, but only the firms with moderate possibility of bankruptcy fund R&D expenditures through cash and cash equivalent in the condition of financial distress. The evidence suggests that firms fund R&D expenditures by cash and cash equivalent when they are under financial distress. Findings provide an implication on the management of R&D expenditures and liquidity in the firms.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.20 no.10
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• pp.149-158
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• 2019

The scheduling of planned maintenance problem of a system consisting of a number of components was studied. The purpose of maintenance scheduling is to minimize the cost of maintaining long-term operations. On the system side, the cost of a system shutdown can be minimized by grouping and inspecting a number of components. In addition, proper inspection cycles can be selected for each component to identify the failure sufficiently early to minimize the cost of the failure. To reduce the complexity of the calculations, the 'base interval approach' used in previous studies was applied and, in addition, the inspection cost savings from simultaneous inspections of multiple components were considered. To compare the effectiveness of inspection cost savings, this paper presents the results of simulation analysis performed by referring to the cases in the existing studies.

• International Area Studies Review
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• v.12 no.2
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• pp.149-173
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• 2008

This paper empirically studies the relationship between R&D expenditures and firms value. First, we can conjecture that R&D expenditures are enhancing the firms value. Such findings depend on an existing research, which R&D expenditures are intangible asset rather than expenses. Although, under U.S. accounting standards, financial statements do not report intangible assets but costs. Second, we can conjecture that short-term, the rate of increase in R&D expenditures had negative influence on firms valuation, because such findings indicates that R&D spending of costs incur mis-pricing. But long-term, consistently R&D expenditures may attract investors on the stock market. Third, lately firms focus on capital efficiency management, such a firms R&D expenditures incur high ROE. Generally investors put too much confidence in capital efficiency management and high ROE may attract investors on the stock market. Finally, High-Tech through the R&D investment improve firms competitive advantage, by competitive advantage, firms have reduced cost and raised productivity in the end improve firms value.

• Journal of the Korea Institute of Building Construction
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• v.10 no.3
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• pp.71-81
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• 2010

In 1994, Korean construction research and development (R&D) projects received investments amounting to 1.2 billion KRW, an amount that rose to 164.8 billion KRW in 2007. Under the current system, construction researchers submit the application records of Construction Research and Development (R&D) in construction projects to the Korea Institute of Construction & Transportation Technology Evaluation and Planning. The performance of Construction R&D projects has thus been dependent on the subjective reporting of the results by the researchers themselves. For this reason, it is difficult to secure confidence in the records of Construction Research and Development. Therefore, this research suggested measures for revitalizing Construction Research and Development, analyzed approaches to cost-saving in Construction Research and Development, and analyzed economic effectiveness in the results of construction R&D.

• Proceedings of the Korea Information Processing Society Conference
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• 2005.11a
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• pp.1403-1406
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• 2005

원자력 시설 및 연구용 원자로 해체 시 해체 일정과 해체 폐기물량 그리고 해체 비용을 분석하기 위한 평가식이 수립되었다. 연구로 2 호기 Thermal column 자료를 참고하여 평가식을 실험하였다. 해체 공정 모사 결과를 애니메이션으로 보여주는 가시화 모듈과 해체 일정과 해체 폐기물량, 작업자 피폭선량 및 해체 비용 등을 평가식으로 계산 한 후 그 결과를 그래픽으로 보여주는 시뮬레이션 모듈로 구성된 해체 디지털 목업 시스템의 그래픽 사용자 인터페이스가 설계되었다. 해체 단위 작업별 평가식은 원자력과 관련한 시설 해체 시 해체 일정 및 해체 비용 분석 및 예측에 중요한 기초자료로 사용 될 것이다. 또한 그래픽 사용자 인터페이스는 방사능의 오염으로 인해 작업자가 접근하기 힘든 환경에서의 해체 활동을 사전에 경험함으로써 피폭으로부터 작업자의 안전성을 향상시킬 수 있는 유용한 도구로 활용될 수 있다.

• Journal of Korea Technology Innovation Society
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• v.12 no.2
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• pp.360-387
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• 2009

In this paper, we analyse empirically the effects of internal financing on investment of innovative small and medium sized enterprises listed on Kosdaq Market of Korea Exchange. The main results of this study can be summarized as follows. Free cash flows by proxy variables of internal financing have the significant effects on R&D investment as well as fixed asset investment. Internal financing has much more effects on R&D investment of general enterprises listed on Kosdaq Market than that of venture enterprises listed on Kosdaq Market, and on R&D investment of innovative enterprises than that of non-innovative enterprises. Internal financing has more effects on asset-counted R&D investment than cost-counted R&D investment. Asset-counted R&D investment is counted in intangible assets on Balance Sheet, and cost-counted R&D investment is counted in cost on Income Statement. Internal financing has more effects on R&D investment of financial constrained enterprises than that of financial unconstrained enterprises. Financial constraints is measured by credit ratings. Faulkender and Smith (2007) emphasize that low credit ratings enterprises are more likely to face financial constraints, and they rely largely on internal financing.