• Journal of Technology Innovation
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• v.5 no.1
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• pp.181-205
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• 1997

There has been considerable controversy over the impacts of the tax credit on R&D expenditures in many countries. Korea has adopted various kinds of tax credit system to stimulate private firm' R&D expenditures. Korean government, Recently, is trying to reform tax system to reduce tax credit programmes according to Uruguay Round agreement and in line with OECD policy standards. The purpose of this paper is to analyze the effectiveness of current tax credit system on technology innovation in Korea and derive some policy implications over tax reform. In this paper, firstly, I investigate the size of tax reduction effects from each program in theoretical models and simulate the actual rate of individual tax incentive to a unit of R&D expenditure. I find that theoretically the reserve fund for technology development program has given the largest tax reduction effects to private firms irrespective of the R&D incentive system reform. Tax credit on R&D expenditure also has been very effective instrument to firm's tax reduction. Secondly, I try to measure the effectiveness of tax credit through the estimation of effective margianl tax rate between with the system and without the system of credit on R&D expenditure during the tax credit reform periods. I find that the tax credit on R&D has lowered firm's investment cost since the system introduced. I also have strong results that there has been a positive relation between the fluctuation of firm's R&D expenditure and the change of effective marginal tax rate. I suggest that it is better to sustain the system of tax credit on R&D for a while to increase firm's R&D expenditure.

• 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.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.40 no.2
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• pp.104-110
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• 2017

When evaluating effectiveness of a R&D program, there is a tendency to simply compare the performances of the beneficiaries before and after the program or to compare the differences in the performances of the beneficiaries and the non-beneficiaries before-after the program. However, these ways of evaluating effectiveness of a program have some problems because they can not differentiate between complement effect, which facilitates corporate R&D investment, and substitute effect, which, literally, substitutes corporate R&D investment. Therefore, these problems could bring about wrong policies concerning R&D programs. In this paper, a new approach using path analysis is suggested as a means to overcome these problems and it is utilized, as an application, to evaluate the effectiveness of Plant Engineering Program conducted by Ministry of Trade, Industry & Energy, Korea. First, the direct impact of government R&D investment on corporate R&D investment is analyzed, through which it is identified which of crowding-in effect (complement effect) and crowding-out effect (substitute effect) is dominant. Next, the direct effect of government R&D investment on corporate performance and the direct effect of corporate R&D investment on corporate performance is analyzed respectively. Finally, by combining the two previous analysis, the total effect of government R&D investment on corporate performance is identified. As a result, it turns out that, in Plant Engineering Program, crowding-in effect is more dominant than crowding-out effect and that Plant Engineering Program has definitely positive effect on the beneficiary in terms of corporate performance indirectly and directly.

• Journal of Technology Innovation
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• v.21 no.3
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• pp.73-94
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• 2013

The prinary cause of the decreasing SME's competitiveness in technology is the intensifying human resource shortages. The government supports a part of labor costs for SMEs as a means of policy. There are two ways of supporting labor costs for R&D personnel. One is to hire R&D personnel first then support their partial labor costs. The other is to support labor costs first for R&D personnel in national R&D programs then hire R&D personnel. This study analyzes the effectiveness of two different ways by classifying sales, no. of employees, R&D expenditure, no. of researchers, and no. of MA/Ph.D. researchers. In terms of employing researchers with MA or Ph.D., the effectiveness on employment subsidy is significantly higher than that of R&D subsidy. Its effect has been relatively high in non-metropolitan areas and manufacturing industry.

• Asia-Pacific Journal of Business
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• v.10 no.3
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• pp.69-93
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• 2019

There is a growing interest in researching new leadership and efficient organizational management due to the changes and spread of Information Communications Technologies (ICT) related organizations. Therefore, the purpose of this study is to examine the effect of leadership on organization in ICT R & D, and to follow the relationship between coaching leadership, leader member exchange (LMX), emotional intelligence of leaders, and organizational effectiveness. In order to verify this research problem, a total of 310 people were surveyed from employees working in the ICT R & D field. Reliability analysis of the measuring tool was tested on 80 pilot surveys in advance, and the final 285 data were used for empirical analysis excluding 25 unsatisfactory responses. For analysis, SPSS 22.0 program and AMOS were used to analyze the reliability, validity, path analysis, and control effects of the measurement tools. The findings demonstrate empirically the positive relationship between LMX and organizational effectiveness on coaching leadership in ICT R & D. In addition, by empirically verifying the effect that the emotional intelligence of the leader regulates the relationship between LMX, organizational effectiveness, and coaching leadership, then emotional intelligence of the leader can be usefully applied in ICT R & D. Furthermore, the demand for more in-depth research on coaching leadership, LMX, and emotional intelligence of leaders, which positively affects organizational effectiveness, was identified as demand for ICT R & D is increasing and horizontal and interactive leadership is needed.

• Management & Information Systems Review
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• v.28 no.4
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• pp.109-129
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• 2009

This study aims at investigating the effectiveness of SME's R&D system empirically. Specifically, this study analyze the relationships among R&D inputs(R&D investment, R&D human resource management), process(R&D planning, external network, internal cooperation), and output(technological innovation). A questionnaire was developed to measure the above variables. To test these relations, data were collected from the small and medium-sized IT firms located in Daegu-Kyungbuk region. The survey data of 154 firms were integrated as the empirical base for testing the relations. Most respondents were from the managers. Structural equation modeling analyses were used to examine the relations. Major results are as follows: Firstly, R&D HRM was positively and significantly influenced on the R&D planning. Secondly, R&D planning was positively and significantly affected on the external network, internal cooperation, and technological innovation. Thirdly, the both relations between R&D investment and R&D planning, and external network and technological innovation were not significant statistically. These results suggest the following implications. First, R&D human resource management is very important for IT SMEs. Secondly, internal cooperation mediates R&D inputs and technological innovation by approaching the other department's unique resources and by sharing the cost of new resource development. Several future researches need to overcome the limitations of this research. First, this study's sample was based on the small and medium-sized IT firms just located in Daegu-Kyungbuk region. This limitation may imply that empirical results can not represent overall small and medium-sized firm's situations. Therefore, future research needs to include different samples. Secondly, this study depends on the latitudinal study.

• Korea Trade Review
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• v.47 no.2
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• pp.47-67
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• 2022

This study is to investigate the relationships between R&D collaboration and competitive advantage in Korean international venture firms from the perspective of resource-based theory, organizational learning and network theory. The R&D collaboration is divided into vertical cooperation within the value chain and horizontal cooperation beyond value chain. The first key finding from empirical analysis is that both vertical and horizontal R&D collaborations have significantly positive impacts on technology based competitive advantages. The vertical R&D collaboration has more impacts on competitive advantages than horizontal R&D collaboration. This suggests that R&D collaboration with purchasers and suppliers plays a greater role for venture organizations' competitiveness. Second, the potential knowledge based absorption capacity and mutual goodwill trust also work significantly to reinforce the positive influences of R&D collaboration to the competitive advantage. This implies that mutual trust between partners participating in collaboration and absorption capacity within venture organizations would strengthen the effectiveness of R&D cooperation. This study provides the practical implications that the performance and effectiveness of R&D collaboration may rely on the nature of cooperation partners and internal organization capability.

• Journal of Service Research and Studies
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• v.12 no.3
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• pp.60-69
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• 2022

In this study, to verify the effectiveness of the persona-type consumer analysis data service, a study was conducted focusing on the consumer analysis service use case of www.ethno-mining.com. The case was targeted at the 'Small Business Design Difficulty Resolving Support Project' of the Gangwon Institute of Design Promotion. The progress of this study was to develop a questionnaire to measure the user satisfaction and effectiveness of the service, study the consumer analysis data of the persona method of the www.ethno-mining.com system, study related theories, compare similar services, and conduct questionnaires; The results were analyzed and tested. In the result of testing the participants in the 'Small Business Design Difficulty Resolving Support Project' of the Gangwon Design Promotion Institute, the persona-style consumer analysis data got a positive response in terms of user satisfaction, and a regression that measures the effectiveness of the service on the company's R&D In the analysis, it was found that there are practical effects for companies by reducing time, reducing costs, smooth communication between developers, securing expertise in consumer analysis, and improving the overall quality of R&D during R&D.

• Asia pacific journal of information systems
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• v.33 no.4
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• pp.1043-1057
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• 2023

The objective of this study is to explore the perceptions of justice regarding the implementation of flexible work arrangements, as well as to analyze the effects of such arrangements on job satisfaction and organizational effectiveness. The present study posits three key aspects, namely distributive justice, procedural justice, and interactional justice, which are hypothesized to influence individuals' impression of justice in relation to flexible work systems. To investigate the influence of job types on an R&D organization, specifically comparing R&D employees and office management employees, a dataset of 190 R&D employees and 50 office management employees was collected. The findings of the investigation provide empirical evidence that distributive justice has a significant impact on the level of job satisfaction among employees in both research and development (R&D) and office administration roles. Moreover, the influence of work satisfaction on organizational performance is noteworthy, particularly with regard to factors such as job dedication, organizational citizenship behavior, and knowledge sharing. The aforementioned findings offer significant insights for research and development (R&D) firms that have incorporated flexible work arrangements. These insights underscore the significance of emphasizing specific justice perceptions in order to augment job satisfaction and overall performance within the organization.

• International Commerce and Information Review
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• v.16 no.5
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• pp.51-66
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• 2014

The relationship study between SMEs' R&D and business performance is important research subject. The objective of this paper is to evaluate whether the effectiveness of government's R&D subsidy for SMEs is supported. The positive perspective is that the support policy stimulates the SMEs innovation activities including R&D and thus contributes to the performance, but the negative view is that the support policy rather decreases the firm's own R&D investment and thus the result is not necessarily promising. This paper is to evaluate the effectiveness of government subsidy on SMEs' R&D. This study suggested DID and Random Effect Models for analysis using the panel data of 2,807 SMEs in manufacturing sector. The data was collected from the 'Survey on SMEs Technology & R&D 2011' conducted by Korea Federation of Small and Medium Business. The results are as follows. First, government's subsidy has crowded out 4.7% of beneficiary's internal R&D investment. Second, government's subsidy has increased 27.3% of beneficiary's R&D intensity in spite of 4.7% internal R&D investment reduction. Third, government's subsidy didn't have a relationship with firm performance but the R&D intensity made positive influence on the firm performance. Finally, R&D intensity has increased the 6.7% of firm performance. These results mean that government's subsidy give a positive impact on SMEs' performance through R&D intensity with relatively small crowding-out effect.