• Journal of Energy Engineering
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• v.6 no.2
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• pp.145-151
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• 1997

The R&D investment of power industry has significant influences on the social welfare as well as national economy. It is necessary to analyze how efficient the R&D investment has been performed. The objective of this study is to verify the efficiency of the R&D investment in the domestic power industry. A formula was introduced to by calculate the appropriate amount of R&D investment of monopolistic industry under the regulations which are determined by the proportion of R&D elasticity and price elasticity. It has resulted that there would be no economy of scale as the sales of electricity increases at the same rate of the increasing cost. The R&D investment in the present electricity industry has been performed inefficiently by showing the negative impact on price-cost margin of the intensity of R&D investment, which is the extent of R&D investment to reinforce economy of scale.

• Journal of Technology Innovation
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• v.20 no.1
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• pp.263-294
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• 2012

The purpose of this study is to examine the effect on R&D investment and technology commercialization capabilities on business performance of 118 Korean firms which has R&D center. In particular, this study tried to define technology commercialization and technology commercialization capabilities for the board and narrow perspective, and investigates the role of technology commercialization capabilities in linking R&D investment and business performance in terms of a financial performance as the growing rate of sales, the growing rate of operating income to sales and non-financial performance as the ratio of technology commercialization. The results of this study are as follows. First, the findings of the research indicated that there was a significant positive relationship between R&D investment and business performance as financial and non-financial. Second, the study found that board technology commercialization capability as technology strategic planning, technology process, and technology organization has the mediating effect to R&D investment on business performance as the ratio of technology commercialization. Third, the study found that narrow technology commercialization capability as manufacturing and marketing play a mediating role in terms of business performance as financial and non-financial.

• Korea Trade Review
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• v.42 no.2
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• pp.1-27
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• 2017

The purpose of this paper is to examine how industry-level R&D investments increase exports in Korean manufacturing industries through the strengthening of product competitiveness and cost competitiveness. We developed a research model indicating that R&D investments positively affect product competitiveness and cost competitiveness, in which investments in R&D will finally lead to increases in exports in manufacturing industries. Product competitiveness is divided into new product innovation capability and product quality competitiveness, while cost competitive advantage is divided into labor productivity and capital productivity. We have collected data from 20 manufacturing industries between 2004 and 2014, and analyzed them through path analysis. Empirical results of this study are as follows. First, R&D investment in the manufacturing industry positively affects new product innovation capability, product quality competitiveness, labor productivity and capital productivity of the industries. Second, increased product quality competitiveness, labor productivity and capital productivity positively affects exports of Korean manufacturing industries. Thus, we can conclude that R&D investments in Korean manufacturing industries positively influence exports through increases in product quality competitiveness, labor productivity and capital productivity.

• Journal of Technology Innovation
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• v.3 no.1
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• pp.185-212
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• 1995

전통적인 산업조직이론에서 널리 사용되는 시장구조-행동-성과 분석 도구 (The SCP Paradigm)는 시장성과가 가격정책, 기술개발투자(R&D), 광고투자, 생산설비 변경 등 시장행동의 함수라는 암묵적 가정에 근거한다. 최근 시장행동 중에서 기업의 관심이 크게 높아진 R&D 및 광고투자가 시장성과에 미치는 영향이 크게 부각되었으며, 시장성과를 구성하는 주요요인으로 주목받고 있다. R&D 및 광고 투자의 성격과 행태, 그리고 시장성과에 미치는 영향이 상호 유사함에도 불구하고 두 가지 변수를 동시에 다룬 연구는 매우 드물다. 몇 안 되는 연구들도 기업의 행태를 실증적으로 설명하는데 치중함으로써 이론적 근거를 소홀히 하는 경향을 보이고 있다. 즉, 논리의 전개상 이론적인 근거를 바탕으로 수리모형이 먼저 제시된 후에야 이를 검증하는 방법으로 통계모형을 사용하는 것이 옳을 것이다. 이 논문은 기존의 SCP 분석방법을 사용하여 기업이 한정된 재원을 어떤 원칙아래 R&D 및 광고에 분산 투자하는 가를 설명하기 위해 수리모형을 설정한 후, 정태와 동학, 확실성과 불확실성, 단발성과 균등투자전략의 개념을 도입하여 다양한 분석을 시도하였다. 또 R&D 및 광고투자 함수를 이론적 근거에 의해 도입하되, 각 모형에 균형이 존재하는가를 검증하였다. 수리모형을 이용해 분석한 결과 (1) 기업의 투자는 R&D 및 광고투자간에 한계원리(Marginal Principle)가 지켜지도록 분배할 때에 효율적임이 판명되었고, (2) 동학모형이 정학모형을 포함하는 일반모형의 성격을 가지고 있었으며, (3) 투자는 확실성이 높을수록, 분산시킬수록 투자효과가 큰 것으로 나타났다. 한국을 대상으로 한 실증적 모형추정은 앞의 수리모형 및 그 결과에 근거를 두었으며, 한국기업에 적절한 R&D 및 광고투자함수를 추정한 뒤 이를 이용해 업종, 기업규모, 상품유형별로 적합한 모델(Fixed Effects Model)을 결정하고, 각각에 해당하는 통계모형을 구축하였다. 이 결과 (1) 업종 및 기업규모별로 그룹간에 유의한 특성이 발견되었으며, (2) R&D 및 광고투자는 기업의 시장성과를 설명하는 중요한 변수이나, (3) R&D 투자의 경우는 광고에 비해 불확실성이 존재하는 것으로 나타났고, (4) 수리모형에서 도출된 한계원리가 통계모형에서도 유효한 것으로 드러났다.

• Journal of Technology Innovation
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• v.19 no.3
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• pp.57-83
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• 2011

We suggested industry-specific priorities of R&D investment with R&D investment elasticity to GDP calculated from the ripple effect of 28 large-sized industry R&D investment, using a Computable General Equilibrium(CGE) Model. Priority orders apply to only 12 industries, because 16 industries with less than 1% of total investment have been excluded. First, R&D investment elasticity to GDP says that priorities are ordered as Basic metal products, Chemicals, drugs and medicines, Food, beverages and tobacco products, Electronic and electrical equipment, Transportation equipment, Precision instruments, Electrictity, gas, steam and water supply, General machinery and equipment, Communications and broadcasting, Construction, Other services, and Real estate and business services. These priorities show the status quo of Korean industry structures well. The GDP growth rate to 2030 year reference equilibrium, which is an auxiliary index, says a similar priority to results from R&D investment elasticity to GDP. In the end, two criteria of priority order can be functioned as a good index for National Science and Technology Commission deciding what industry to invest and what budget to allocate.

• Analyses & Alternatives
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• v.8 no.2
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• pp.87-115
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• 2024

This study examines the effect of R&D investment on firm performance and value of Chinese private firms. Through R&D investment, firms aim to acquire knowledge and technological resources to create innovation and competitive advantage, which ultimately enhances firm performance and value. However, unlike other investments, R&D investments are characterized by high adjustment costs and risks, uncertainty and asymmetric information. In addition, the effect of R&D investment on firm performance and value has been shown to be mixed results due to various internal and external contextual factors. Therefore, this study intends to consider how the ESG activities of firms, which have recently attracted attention, act as a contextual factor in the results of R&D investment. This is because interaction with stakeholders through ESG activities is considered to be an important factor in securing competitive advantages and sustainable growth. In this context, this study measures the effect of a firm's R&D investment on its business performance by dividing it into financial performance and value, respectively, and examines the moderating effect of ESG score on the relationship. Based on empirical analysis of all Chinese private firms from 2010 to 2019, the results show that a firm's R&D investment has a negative impact on performance and a positive impact on value. Furthermore, a high ESG score of private firms positively moderates each relationship, emphasizing the importance of ESG activities.

• Journal of Technology Innovation
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• v.29 no.2
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• pp.31-57
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• 2021

So far, several researchers have studied the relationship between research and development investment and firm performance; however, most have focused on linear relationships. Thus, previous studies remain fragmented and show mixed results. This study examined the moderating effect of political ties in the relationship between R&D investment and firm performance. We tested the hypotheses based on extensive 20-year data on enterprises, from 1998 through 2017, as the research period. The study is expected to contribute to explaining the mixed results of the research between research and development investment and firm performance.

• Journal of Korea Technology Innovation Society
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• v.17 no.4
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• pp.651-672
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• 2014

Under the diagnosis of low employment rate and low growth, the government regards the creation of new jobs through the creative and innovative R&D as an important national plans. This study attempts to measure the employment creation effect of R&D investment of industrial technology by using input-output analysis used in domestic and international broadly. The employment effect can be divided into employment inducement effect and direct employment effect. As a result of the analysis, The employment creation effect of R&D investment of government industrial technology is measured to be 8-12 peoples per 1 billion KRW investment. This results mean that government R&D investment is a effective policy for employment creation. And it is necessary to establish R&D policies that reflect the technical characteristics of the employment creation effect. In short term, it is important that the government invest the superior technology of total employment and direct employment as essential means of employment creation by selection and concentration strategy. In mid-long term, the government should focus on technology spread as technology transfer and opening innovation strategy for employment creation to support superior technology of employment inducement. The results of this study can be used in analysis on the employment creation effect related to industrial technology R&D.

• Journal of Convergence for Information Technology
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• v.10 no.1
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• pp.1-12
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• 2020

The Government provides a financial assistance to stimulate firm R&D and innovation activities. Previous papers on the impact of public subsidies on firm R&D investments mainly had a focus on an individual policy tool regardless of potential impacts of other policy instruments. This study addresses this gap by examining the effects of policy mix regarding a subsidy and a tax credit. The empirical analyses from fixed effect model using Survey on Technology of SMEs 2015-2017 revealed valuable points. First, policy mix induces more R&D investment of SMEs, which in turn, shows a complementary relationship between two instruments. Second, even if impact of tax credit controlled, subsidy is positively associated with SMEs R&D investment. These findings justify policy mix interventions to promote SME R&D activity. Moreover, grants can be applied as a more useful policy tool for SMEs that are constrained by resources and capabilities.

• Journal of Korea Technology Innovation Society
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• v.21 no.2
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• pp.663-683
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• 2018

This study aims to analyze the effectiveness of R&D tax credit for SMEs. We surveyed to collect the information on firm's financial statements and R&D tax credit during 2014-2016, and implemented fixed effect model, random effect model and panel negative binomial model. The results show that the effect of R&D tax credit is 5.3 times larger in terms of R&D expenditure and 4.3 times bigger in terms of number of researchers than that of R&D subsidy. In addition, the effect of tax credit on non-metropolitan area companies is higher than that in the metropolitan area. Based on these results, we suggests three ways to improve the R&D tax incentive system for SMEs; To convert unused R&D tax credit of the start-ups to tax points, to exempt the minimum tax rate on R&D expenditure in equipment, and to unify the operation of various R&D tax credit institution.