• Journal of the Korea Academia-Industrial cooperation Society
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• v.19 no.4
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• pp.446-453
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• 2018

The study examines corporate research & development (R&D) expenditure in modern finance. Firms may face one of the essential issues to maintain their optimal levels of R&D expenditures in order to increase corporate profit. Accordingly, financial determinants that may influence R&D spending are statistically tested for firms listed on the KOSPI stock market during the period from 2010 to 2015. Financial determinants which may discriminate between firms in high-growth and low-growth industries are examined on a relative basis. Explanatory variables including one-period lagged R&D expenses (Lag_RD), cross-product term between the Lag_RD and type of industry (as a dummy variable), and advertising expenses (ADVERTISE) significantly influenced corporate R&D intensity. Moreover, high-growth firms in domestic capital markets showed higher Lag_RD, profitability (PROF) and foreign equity ownership (FOS) than their counterparts in low-growth sectors, whereas low-growth firms had higher market-value based leverage (MLEVER) and ADVERTISE. Overall, these results are expected to influence decision-making of firms concerning the optimal level of R&D expenditure, which may in turn enhance shareholder wealth.

• Management & Information Systems Review
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• v.36 no.3
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• pp.239-254
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• 2017

This study examines the relationship between R&D spending and patent rights, which are suggested by firms as a way to increase their firm value. Specifically, we examine the relationship between research and development costs and patent rights, and see if there are any differences in the influence of two variables on firm value. The period of this study is from 2005 to 2016, and the sample of companies used in the research including the patenting companies is composed of 333 companies in total. The results of the study are as follows. First, the cost of R&D expenditure and capitalized R&D expenditure showed a significant positive correlation with patents. Second, R&D spending did not show a significant relationship with firm value, but patent rights showed a significant positive correlation with firm value. However, firms that spend a large amount of R&D expenditure (RDD), such as research and development expenses, showed a significant positive (+) value and a patent dummy (PATD). Third, in the analysis of the difference between the dummy of research and development and the patent dummy, the enterprise value of a company that invested a lot of patents and research and development expenses was high. The contribution of this study is to examine the relevance of corporate value to R&D investment for patents. On the other hand, there are various variables that can be used as a sample of patents.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.20 no.44
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• pp.257-261
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• 1997

Patents often serve as leading indicators of technological change. This patenting activity reflected R&D (Research & Development) of new technology. The purpose of this study is to set up a forecasting model that anticipate the number of domestic patent applications and the number of patents granted relating to R&D inputs (R&D expenditure, R&D manpower) at the level of three industrial sectors in Korea : electrical-electronic, machinery, chemical etc. In this study, forecasting models were used trend extrapolation and a set of regressions. Both Theil's inequality coefficient and MAE(Mean Absolute Error) were utilized to test the precision of predicted value. The patent data and the R&D data were based on Indicators of Industrial Technology data throught 1980 to 1996. The major results obtained in this study are as follows (1) The regression model is more useful for forecasting the trends of the number of patent applications and patents granted than the trend extrapolation method. (2) The variance of Theil's inequality is smaller in patent applications than in patent granted.

• Journal of Technology Innovation
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• v.7 no.1
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• pp.176-186
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• 1999

This paper starts out by reviewing the literature that in different ways utilizes patent data as an output of Research ＆ Development (R&D) investment. The main focus, however, is an analysis of time-lag between industrial R&D input and its output. To achieve this research's purpose, the basic data associated with the industrial R&D input (expenditure, researchers) and output (applied patent and utilities) for the past 15 years, from 1980 to 1994, in the areas of electrical-electronic, mechanical and chemical industries have been collected. And the raw input data were altered into real flow data (but stock data) using Laspeyres approach and analyzed using multiple regression analysis, especially stepwise regression analysis. The result of this study can be summarized as follows: a) The time-lag; between industrial R&D input and its output is within 1 to 3 years. b) The time-lag: of patents was longer than that of utility models. c) The time-lag: in electrical-electronic, chemical industry was longer than that of the mechanical industry.

• Journal of Information Technology Services
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• v.8 no.2
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• pp.189-204
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• 2009

Our study aims to investigate the determinants of international competitiveness and international specialization in services, using OECD service trade data. Real exchange rates, world demand, economies of scale, diffusion of IT, human capital, R&D expenditure and institutional variables are introduced as explanatory variables in regressions for 29 OECO countries over $1996{\sim}2003$. Some of major findings from the study can be summarized as follows. First, economies of scale play important role in transport and business services. Second, the index of freedom to trade measured by Faster Institute has a positive and significant impact on international competitiveness in telecommunication, finance and insurance and business services. Third, IT provides favorable condition to build international competitiveness in finance and insurance and business services. Fourth, R&D expenditure contributes to the amelioration of international competitiveness in transport services, while investment in new equipments contributes to increasing the competitiveness in telecommunication services. Thus, our results show the importance of the industrial base for developing a competitive service economy.

• Journal of Technology Innovation
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• v.24 no.1
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• pp.169-188
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• 2016

This study examines each factor's effects on the firm's innovation method selection by comparing with EU countries and suggests policy implications for improving firm's innovation capabilities, confirming the changes with the latest data. We used similar data and model for this, and as a result, Korea is located between intermediate group and catching-up group in 2005. In 2014, we found partially positive changes; increase in R&D cost ratio along innovation expenditure, conducting in-house innovation, and R&D in high-tech sector. Therefore, it is required to support innovation expenditure and complement the system for high-tech firms, those that apply patent or conduct industry-university/government research institute linkage in order to improve innovation capabilities.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.39 no.2
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• pp.64-71
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• 2016

Recently, nanotechnology has grown as one of the leading science technology along with other converging technologies such as biology, information, medicine etc., bringing the continuous investment of the government in nano-related field. However, it is difficult to measure and evaluate the performance of the national research and development programs because of the multidimensional character of the expected outcomes. This study aims to measuring efficiency of the national nanotechnology research and development programs using DEA model. The decision making units are nine nano-related ministries including the Ministry of Science, ICT and Future Planning. The input variables are total expenditure, number of the programs and average expenditure per program. The output variables are science, technology and economic indicator, and the combination of these outputs are respectively measured as seven different DEA cases. The Ministry of Science, ICT and Future was the first efficient ministry in total technical efficiency. Ministry of Agriculture, Food and Rural Affairs and the Ministry of Food and Drug Safety were efficient in pure technical efficiency, when the Ministry of Commerce Industry and Energy took the first in the scale efficiency. The program efficiency was affected by organizational characteristics such as the institution's scale, the concentration of the research paper or the patent, technology transfer or the commercialization. The result of this study could be utilized in development of the policy in the nanotechnology and the related field. Furthermore, it could be applied for the modification of expenditure management or the adjustment of the research and development programs' input and output scale for each ministry.

• Proceedings of the Technology Innovation Conference
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• 1997.07a
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• pp.160-171
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• 1997

This paper starts out by reviewing the literature that in different ways utilizes patent data as a output of R&D investment. The main focus, however, is an analysis of time-lag between R&D input and output. To achieve this research objective, the basic data associated with the R&D input(expenditure, researchers) and output(patent, utilities) for the past 15 years, from 1980 to 1994, in the areas of electrical-electronic, mechanical and chemical industries have been collected. And the raw output data were altered it to objective data using Laspeyres approach and analyzed using multiple regression analysis, especially stepwise regression analysis. The result of this study can be summarized as follows: a) The time-lag between R&D input and output is from 1 to 4 years. This result is equal to the research conclusion of the existing foreign studies. b) It was found that the time-lag of patents was longer than of utility models. c) It was showed that the time-lag of electrical-electronic, mechanical industry was longer than the chemical one.

• STI Policy Review
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• v.8 no.1
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• pp.1-22
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• 2017

There has been a pronounced increase in research and development (R&D) expenditure in Singapore over the last two decades, with government spending accounting for a sizeable share. This increase has been spurred by public policy emphasis on research and innovation as engines of economic growth. This paper analyses the impact of R&D on economic performance in Singapore from 1978 to 2012 through the use of time series analysis. The Cobb-Douglas based analysis shows a long-run equilibrium relationship between Total Factor Productivity (TFP) and R&D investments. We found that the short-run productivity of R&D in Singapore is comparable to smaller advanced economies in the Organisation for Economic Co-operation and Development (OECD). However, in terms of long-run R&D productivity, Singapore lags slightly behind the smaller OECD nations and far behind the G7 countries. This suggests leakage of value capture and low absorptive capacity in local firms. Possibility of productivity improvements induced by policy changes in the 1990s was considered, but no evidence of significant structural breaks was found. Lastly, Granger causality analysis reveals that public sector R&D augments private sector R&D capital, thus playing an important role in generating externalities and spillover effects. Policy implications and lessons for other middle-income countries are discussed.

• Journal of Korea Technology Innovation Society
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• v.12 no.3
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• pp.638-661
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• 2009

With the advance to the knowledge-based economy, science and technology (S&T) has been recognized as key factor in a nation's competitiveness. To cope with this kind of new trend Korean government has tried to increase the R&D investment and to streamline acts and regulations concerning national R&D activities. Korea's total R&D expenditure for the year 2007 amounted to about 31.3 trillion won including government R&D of 8.9trillion won. With these efforts the capacity of Korea S&T has made great strides recently. Korea was ranked world's top 7 in R&D investment, top 12 in S&T paper publication and top 4 in patent application. Korean government enacted several pieces of legislation concerning S&T : the "Technology Transfer Promotion Act (1999)"; the "Framework Act on Science and Technology (2000)"; and the "Presidential Regulation for Managing the Government R&D Programs (2001)." In addition, the government has put a lot of effort into promoting the commercialization of technologies developed in public sector and improving the infrastructure of technology transfer and commercialization. However in spite of these various efforts, the technologies obtained from the public sector have not been transferred to the industry properly. Only 24.2% of technologies developed in the public for the year 2005 were transferred to industry. The royalty revenues of the public for the year 2005 was 1.5% of their total R&D expenditure. It shows only a third of the percentage of royalty revenues for the public sector in the U.S.A. and a second of Europe. There are many obstacles of public technology transfer such as immaturity of technology market, lack of licensing experience, and inadequacy of legal system and government policy. In this study I compared the Korean legislative system of patent management of government R&D outputs with the American system, derived problems from Korean system, and suggested proper alternatives.