• Journal of Technology Innovation
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• v.24 no.2
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• pp.177-205
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• 2016

Growing competition is forcing firms to unceasingly achieve innovation for survival. In a response to increased competition, firms invest in R&D. In this vein, this study focuses on the relation between competition and R&D investments of firms. To this end, we decompose competition into actual and potential competition first and then empirically examine effects of each competition on firms' R&D investments. Further, this study also focuses on moderating roles of firms' performance relative to their aspiration level on these relations. By using Compustat data, we found that actual competition hinders firms' R&D investments, but potential competition enhances R&D investments. In addition, the effects of actual and potential competition were moderated by firms' performance relative to their aspiration level. Specifically, negative performance strengthens the negative effect of actual competition on R&D investments, but attenuates the positive effect of potential competition. Moreover, positive performance moderates the effects of each competition in the same direction, but its moderating effects are stronger than negative performance. As such, this research seeks to identify the relations between actual and potential competition and R&D investments of firms and the moderating role of performance relative to aspiration level.

• Korean System Dynamics Review
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• v.14 no.4
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• pp.91-112
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• 2013

This article aims at revealing the dynamic relationships between the energy R&D investment and economic growth in Korea. To achieve this goal, we reviewed the effects of energy R&D investments and tried to make the holistic interconnections for describing the feedback loops between energy R&D and economic system. Energy R&D investments develop the renewable energy, energy efficiency and $CO_2$ emission reductions technologies for accomplishing the national strategic targets. The rapid obsolescence of technologies makes the inefficiency and negative effects in governmental energy R&D investments.

• 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.

• Asia-Pacific Journal of Business
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• v.14 no.4
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• pp.23-36
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• 2023

Purpose - This study investigates the impact of equity financing on the valuation of R&D investments using a sample of firms from 33 countries from 1997 to 2018. Design/methodology/approach - I use a modified version of the valuation regression widely used in the literature. Findings - I find evidence that R&D investments are more highly valued when financed through equity. In contrast, debt financing does not affect the valuation of R&D investments. I also document that the impact of equity financing on R&D investment valuation weakens during the financial crisis. Research implications or Originality - In light of the distinctive characteristics of innovative investment, previous research investigates its relationship with financing. What remains unexamined, however, is how financing choices impact the way investors value innovative investments. This study seeks to bridge this gap in the existing body of research using a sample of firms from 33 countries from 1997 to 2018, for 22 years.

• Journal of the Korean Society for Railway
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• v.14 no.3
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• pp.285-294
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• 2011

An analysis of railroad industry has been insufficient whereas there are lots of analysis of accumulation of technology, economic performances and ripple effects for macroscopic view and other industry of R&D investments. This study decided intellectual rights, patent, and paper as common indicators of scientific and technological performances for setting up performance targets through surveying and analysis of preceding study and verified a appropriateness of scientific and technological performances for railroad R&D 11 projects which were successfully finished. Preceding study has been set up performance targets by research investments as input, but this study made a performance target by model through a cross-sectional and residual analysis of performances of railroad R&D 11 Projects in applying research investments, capital investments and inner labor cost per man and research time as inputs, and verified a validity and a empirical analysis through analysis of other project.

• Proceedings of the Technology Innovation Conference
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• 2001.06a
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• pp.145-156
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• 2001

This paper investigates the effect of imported technology on the economic growth of Korea. To this end, the relationship between input technology and economic growth are suggested in the numerical form and analysed empirically. The rates of return of technology investments, which are divided into the domestic R&D investment and the investment on imported technology, are estimated. Based on the result of this analysis, the rate of return of the input technology, which includes the domestic R&D investment and the investment on imported technology, are estimated as 31.4%, and this input technology is calculated as to contribute 8.9% on the economic growth rate of Korea. And the domestic R&D investment is fumed out to have bigger rate of return than the investment on imported technology during the surveyed period. However, the rates of return of detailed R&D investments, which can be divided into the investments on commercial R&D and basic science, were not calculated in this paper, because of the lack of data on this in this paper. As well, the time-lag effect, which is naturally believed to exist between the R&D investment and the economic growth, could not be analysed wit:1 the same reason. Thus when analysing the relationship between them, this paper tried to minimize the time-lag effect by using the long-term data of twenty-three years.

• Journal of Environmental Policy
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• v.12 no.2
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• pp.33-57
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• 2013

This paper test the relationship among determinants of environmental investments, level of environmental investments, eco-efficiency (carbon productivity). The results show that profitability, leverage and R&D costs have a negative impact on environmental investments, and controlling ownership have a positive impact on environmental investments as well as environmental protection costs. The analysis also show that firms increasing environmental investments are able to gain superior environmental performance ($CO_2$ emission), but are negatively relationship with financial performance. Finally, the findings prove that differences exist in the relationship between determinants and effect of environmental investments when grouped by industry characteristics.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.40 no.2
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• pp.31-40
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• 2017

In this paper, we compared the efficiencies of national R&D investments between NT (Nanotechnology) areas in terms of papers, patents, and commercializations, and found ways to improve the efficiencies of national R&D investments for each NT area. This is in response to huge R&D investments government has made recently in NT areas. Here, we collected data on investments, papers, patents, and commercializations for the R&D projects in NT areas through National Science & Technology Information Service. Based on the data, we analyzed the investment and performances (papers, patents, and commercializations) for each NT area, calculated the efficiency for each NT area, and compared the efficiencies between NT areas. Next, using cluster analysis, we identified several NT areas with similar characteristics in terms of paper efficiency, patent efficiency and commercialization efficiency. Finally, we derived implications for the efficiency enhancement for each grouping. The cluster analysis showed that there could be two groups, one being low in terms of technological outcome (papers and patents) efficiencies and high in terms of commercialization efficiencies, while the other being high in terms of technological outcome (papers and patents) efficiencies and low in terms of commercialization efficiencies. Therefore, the strategy for one group calls for support for technology transfer or technology introduction from other R&D performers and grant of guidance for improving R&D performers' commercialization ability to other R&D performers while the strategy for the other group calls for R&D support for transfer of technology to other R&D performers, activation of technology transfer and support for commercialization of R&D performers.

• Journal of Korea Technology Innovation Society
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• v.6 no.3
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• pp.279-297
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• 2003

The purpose of this paper is to analyze the determinants of company R＆D investment with zero observations by using the data of R＆D Scoreboard published by Ministry of Science and Technology(2002). Conventional parametric approach to dealing with zero investments is not robust to heteroscedastic and/or non-normal error structure. Thus, this study applies symmetrically trimmed least squares(STLS) estimation as a semi-parametric approach to dealing with zero R&D investments. The result of specification test indicates the semi-parametric approach outperforms the parametric approach significantly. Moreover, the results of the study provide various implications as summarized below. The R&D investment of IT company is larger than that of non-IT company. The R&D investment has a positive relation to foreigners' investment ratio. The higher degree of financial self-reliance is, the larger the R&D investment is. Firm size variables such as sales amount and the number of workers are positively related to R&D investment. The sales elasticity of R&D investment is larger than one. However, the workers elasticity of R&D investment is smaller than one.

• Asian Journal of Innovation and Policy
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• v.7 no.3
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• pp.625-645
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• 2018

This paper's objective is to draw a decision guideline to continue research and development (R&D) investments in biotech start-ups facing the "Valley of Death" syndrome - a long negative profit period during a financial crisis. The data include financial indices as Net income, Revenues, Total stockholders' equity, Cash & equivalents, and R&D expenses of 18 major biotech companies (nine in negative profit and nine positive, in FY2008) and 15 major pharmaceutical corporations as benchmarks both in FY2008 and in FY2016 derived from the US SEC Database, EDGAR. A first methodology dealing with real options analysis assumes Total stockholders' equity as a growth option. And a second methodology, Bayesian Markov chain Monte Carlo (MCMC) analysis, is applied to test the probability relationship between the Total stockholders' equity and the R&D expenses in these three groups. This study confirms that Total stockholders' equity can play the role of a call option to support continuing R&D investments even in negative profits.