• Journal of Korea Trade
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• v.27 no.5
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• pp.91-112
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• 2023

Purpose - This study empirically investigates how the effects of localized knowledge spillovers on technology adoption are conditional on the organizational capabilities of potential adopters. Design/methodology - The empirical model utilized in this study examines how the presence of prior adopters of advanced manufacturing technologies affects a plant's technology adoption decision differently based on its organizational capabilities, measured by plant size and plant status (single-plant firm vs. multi-plant firm). Moreover, this study investigates how the scope of knowledge spillovers from prior adopters, both in terms of geographical and functional proximities, differ for plants with different organizational capabilities. Findings - The main findings of this study are as follows: 1. Although plants with lower organizational capabilities are less likely to adopt advanced technologies, such plants receive greater marginal benefits from knowledge spillovers from prior adopters in their region. 2. Plants with greater organizational capabilities can benefit from knowledge spillovers from a wider set of prior adopters. In other words, while plants with lower organizational capabilities tend to benefit from knowledge spillovers from "similar" and "local" adopters, plants with greater organizational capabilities can also benefit from knowledge spillovers from "not-too-similar" or are geographically distant prior adopters. Originality/value - While existing studies mainly focus on the effects of the various kinds of regional agglomeration, few studies investigate localized knowledge spillovers in technology adoption. Moreover, no prior studies have explored how the effects of knowledge spillovers on technology adoption depend on a plant's organizational capabilities and how the scope of knowledge spillovers differs for plants with different organizational capabilities. This study is the first to empirically investigate this topic.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 1995.04a
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• pp.363-374
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• 1995

A duopoly model of R&D competition is presented to investigate whether an equilibrium R&D level with flexible spillovers is insufficient (or excessive) from the viewpoint of social welfare. The model focus on flexible spillovers which include much portion of externality occurring in R&D activity. Flexible spillovers refer to the spillovers that vary with industry equilibrium level of R&D. Innovating firms have incentives to cooperate in R&D in the presence of large spillovers. For any symmetric R&D profile, socially desirable equilibrium output is larger than equilibrium output produced in duopoly. Cooperative equilibrium R&D investment is observed to be socially insufficient in terms of welfare criterion irrespective of the magnitude of spillovers. While noncooperative R&D yields socially excessive expenditure on research project for a certain range of spillovers.

• International Commerce and Information Review
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• v.11 no.3
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• pp.191-215
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• 2009

This study extends the previous research into the effects of knowledge spillovers on innovation and regional exports growth by more clearly distinguishing, both theoretically and empirically, two different types of knowledge spillovers, namely product and market knowledge spillovers. More importantly, this research provides insights on their role of knowledge spillovers in shaping regional innovative activities and, eventually, regional export growths. Furthermore, this research makes an important contribution to the understudied market knowledge spillovers by developing two variables that could be used to assess the flow of market knowledge spillovers at the regional level: localization economies and export consulting advice. Using secondary data on eight 2-digit manufacturing industries in ten New Zealand regions over a seven year period, this research found that regional competition, localization economies and the availability of export consulting advice have positively and significantly impact on the regional export growth in New Zealand.

• International Commerce and Information Review
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• v.2 no.1
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• pp.3-24
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• 2009

This study extends the previous research into the effects of knowledge spillovers on innovation and regional exports growth by more clearly distinguishing, both theoretically and empirically, two different types of knowledge spillovers, namely product and market knowledge spillovers. More importantly, this research provides insights on their role of knowledge spillovers in shaping regional innovative activities and, eventually, regional export growths. Furthermore, this research makes an important contribution to the understudied market knowledge spillovers by developing two variables that could be used to assess the flow of market knowledge spillovers at the regional level: localization economies and export consulting advice. Using secondary data on eight 2-digit manufacturing industries in ten New Zealand regions over a seven year period, this research found that regional competition, localization economies and the availability of export consulting advice have positively and significantly impact on the regional export growth in New Zealand.

• STI Policy Review
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• v.1 no.3
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• pp.53-68
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• 2010

This paper empirically evaluates the effects of regional and industrial R&D on the performances of individual firms in two separated stages: (1) the stage of technological outcome from R&D and (2) the stage of economic outcome from technological outcome. Technological spillovers are separated from negative congestion effects through the stage-specific estimation. The firm-level Korean Innovation Survey data merit in coping with the endogeneity problem inherent in the estimation of spillovers. The estimation results show that: (1) there exist significant R&D spillovers both in regional and industrial dimensions, (2) the hypothesized technological spillovers and economic congestion effects are both in effect, and (3) firms with smaller individual R&D investments show greater spillovers.

• Journal of Technology Innovation
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• v.15 no.1
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• pp.145-173
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• 2007

Using patent and firm-level panel data for 1982-2001, this study investigates spillover effects of patents and the strengthening of intellectual property rights on Productivity and Innovation. As well as we consider the effect of intra-industry spillovers, we extend the effect to inter-industry spillovers which implies the effects of IT industries on non-IT industries. The empirical results are summarized as follows. First, allowing for firm-level variables, market competition and technological spillovers, the strengthening of intellectual property rights does not play a significant role on innovative activities. Second, while innovative activities of domestic firms affect significantly firms' innovative activities, those of foreign firms do not. Third, innovative activities of IT industries as inter-industry spillovers play a significant role on innovative activities and labor productivities of domestic firms.

• KDI Journal of Economic Policy
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• v.41 no.4
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• pp.45-66
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• 2019

This paper empirically examines what role of existing exporters play in the discovery of new export products and whether there are evidence of spillovers from export discovery. We find that existing exporters are more likely to discover new export products than non-exporters. We also find evidence of export discovery spillovers; export discovery of a product by some plants had an effect of increasing the probability of subsequent export market penetration of the same product by other plants. Export discovery spillovers are found to be stronger among geographically closely located plants. We argue that information spillovers is a part of the story: you learn from your neighboring discoverers about the profitability of potentially exportable products.

• Journal of Korea Trade
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• v.23 no.2
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• pp.46-58
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• 2019

Purpose - This paper analyzes how Research and Development (R&D) cartelization and Research Joint Ventures (RJV) affect firms that engage in Cournot competition in their product market using a model in which the Home and Foreign firm produce differentiated products and export their total output to a third country's market. Design/Methodology - In a two-stage game, research expenditures incurred in the first stage improve product quality and are subject to various degrees of spillovers. We consider four different scenarios. Findings - In a symmetric equilibrium we observe the following: (i) an RJV that cooperates in R&D decision yields the highest R&D expenditure. However, the scenario which yields the lowest expenditure depends on the extent of differentiation between the goods and the degree of spillovers; (ii) RJV cartelization yields the highest product quality, output, and consumer surplus in the third country; however, the lowest is produced by R&D competition if spillovers are strong and by R&D cartelization if spillovers are weak; and (iii) each firm's profit is at its minimum in R&D competition and its maximum in RJV cartelization. Furthermore, if spillovers are strong, the profit of each firm in R&D cartelization is greater than that in RJV competition, and vice versa. Originality/value - By analyzing product innovation in international markets, we can find similarities and differences between process R&D and product R&D in international markets.

• Journal of the Korean Society for Industrial and Applied Mathematics
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• v.23 no.4
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• pp.329-350
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• 2019

This paper examines individual and social strategies to form profitable cooperation networks. These two types of strategies measure network stability and efficiency that may not meet in a single network. We apply restrictions on knowledge flows (R&D spillovers) and links formation to integrate these benefits into structures that ensure high outcomes for both strategies. The results suggest that linking the spillovers to the firms' positions and restricting cooperation contribute to reducing the conflict between the individual and social strategies in the development of cooperative networks.

• KDI Journal of Economic Policy
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• v.38 no.4
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• pp.77-94
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• 2016

This paper examines the empirical magnitude of local human capital spillovers in Korea during the 1980s and mid-1990s. Local human capital spillovers exists if plants in regions with a higher level of human capital can produce more given their own amount of input (Moretti 2004c). In particular, this paper explores an educational reform in South Korea which exogenously induced a large amount of variation in regional human capital levels. Using annually collected plant level data, I explore the effect of changes in the regional human capital levels induced by this reform on plant productivity in Korea. My results suggest that this effect is limited. I find a positive correlation between a regional level of human capital and plant productivity. However, after further addressing endogeneity using an instrumental variable, the effect of the overall regional human capital level on productivity decreases and becomes statistically insignificant.