• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.16 no.2
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• pp.153-161
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• 2021

This study analyzed the ripple effect of the demand-side support for start-up venture companies on the macro economy using Dynamic General Equilibrium model. In the model, start-up venture companies were expressed in a manner that distinguished between workers and entrepreneurs by applying the span of control in the Lucas(1978). As a result of the analysis, when the share of public procurement of start-up venture companies was increased from 5.7% to 10%, the actual production of start-up venture companies increased by about 46.17% and the number of venture companies increased by about 150%. In addition, it was analyzed that the number of jobs through venture companies increased by about 61.56%. In addition, it was found that the economic effect was greatly reduced when the start-up venture company was supported as a subsidy for the supply sector with the same amount as the public procurement support. This is interpreted as the fact that if the government implements the supply-side support policy, the expansion of supply causes the price of start-up venture companies to fall, reducing the effect of the support policy in half. Therefore, when supporting start-up venture companies, the government should make efforts to maximize the policy effect by expanding the demand-side support through public procurement and reducing the payment of simple subsidies to start-up venture companies.

• Proceedings of the Technology Innovation Conference
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• 1998.06a
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• pp.91-115
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• 1998

Inspire of increasing importance of entrepreneurs for successful new venture creation, structured educational programs for entrepreneur development are very limited in Korea. Based on the survey of existing academic programs and interviews with entrepreneurs, this study presents a new education system for entrepreneurial management and new venture creation. Specifically, seven venture educational programs are suggested. As degree programs, ⅰ) new venture interdisciplinary program and ⅱ) venture MBA program are presented. Also, ⅲ) advanced venture management program, ⅳ) venture capitalist training program, and ⅴ) potential entrepreneur training program are suggested as non-degree programs. In addition, special and supporting programs such as ⅵ) technological entrepreneurship seminar and vii) new venture forum are explained. Finally, some examples of typical entrepreneurial management courses are presented and policy implications are suggested.

• Management & Information Systems Review
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• v.8
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• pp.129-146
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• 2002

This study reviews an overview of the current tax support system in Local Tax Law for venture company. And this study provides the directions for developing tax support system in Local Tax Law related policy for the venture company in Korea. The tax authority provides a supporting directions of venture company in three ways: a financing viewpoint, a technical and manpower viewpoint, and the location viewpoint. And the supporting system for venture company is devide into tax support system through tax laws and support system through other law. The requirements of receiving tax supporting for venture company in Local Tax Law are a venture company, a small and medium company, a newly starting firm, and so forth. To mitigate the restriction imposed by the current tax law on venture company encourage venture activities in Korea.

• Management & Information Systems Review
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• v.4
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• pp.443-467
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• 2000

This study reviews an overview of the current tax support system for venture company and provides the directions for developing tax support system related policy for the venture company in Korea. The tax authority provides a supporting directions of venture company in three ways: a financing viewpoint, a technical and manpower viewpoint, and the location viewpoint. And the supporting system for venture company is devide into tax support system through tax laws and support system through other law. The requirements of receiving tax support for venture company are a venture company, a small and medium company, a newly starting firm, and so forth. To mitigate the restriction imposed by the current tax law on venture company encourage venture activities in Korea.

• Korean Management Science Review
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• v.29 no.3
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• pp.91-105
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• 2012

This paper examines the investment efficiency of Korean venture capitals during 1987~2006 (20 years), focusing on their selection capability. Despite the Korean government's efforts, venture capital industry has evolved in a slow speed. Since the genesis of venture paradigm in Korea at 1997, venture capital industry as a macro unit has been fully discussed in Korean contexts. But venture capital's activities at micro level regarding each investment's outcome have not been examined. This study attempts to fill the voids of micro knowledge about each investment success rates by venture capitals. We analyzed venture investment records in 4,791 venture startups and their success rates. Their investment criteria were relevant to high potential industries and amount of tangible assets. But their criteria were not relevant to R&D intensity and financial growth of venture firms, which may indicate low level of maturity about Korean venture capital industry. We found that Korean venture capital's investment pattern may be originated from the low return of investment, so that efficiency of IPO markets is a prerequisite for the upgrade of venture capitals' efficiency. Some policy implications are discussed.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.11 no.2
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• pp.75-87
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• 2016

This study examines the impact of government funds to venture capital on investment in early-stage firms. We provide novel explanations about this relationship focusing on mechanisms by which government funds influence the perceived uncertainty, decision about investment priority, scale economy of investment, information asymmetry in investment decision, and capital expense. We argue that venture capital's investment in early-stage firms increases as government funds increase and as government funds are explicitly directed for early-stage firms. However, we further claim that the impact of government funds on early-stage investment will be decreasing as their size increases and finally be reverted to negative impact beyond a certain amount of funds to show inverse-U relationship. Our empirical examination using data from 105 Korean venture firms active as of 2013 consistently supports the claims. This study contributes to the venture capital literature by providing novel arguments about mechanisms and effects of policy intervention in venture capital. In practice, we expect our results will provide an opportunity for relevant policy makers to review their venture support policy based on empirical evidences for policy effects.

• Journal of Venture Innovation
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• v.7 no.1
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• pp.17-39
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• 2024

The purpose of this study was to analyze the effect of the government's R&D support and the use of stock options by venture companies on the innovation of venture companies, that is, innovation capabilities and innovation performance. An empirical analysis was conducted using the partial least squares structural equation modeling (PLS-SEM) method using the data from the detailed survey of venture companies conducted on domestic venture confirmation companies. As a result of the analysis, it was found that the benefit of government R&D support had a positive (+) effect on strengthening the innovation capabilities of venture companies, and R&D support also had a positive (+) effect on the innovation performance of venture companies. Next, it was found that the use of stock options by venture companies had a positive (+) effect on the reinforcement of the innovation capabilities of companies and a positive (+) effect on the innovation performance of venture companies. In addition, it was found that the innovation capabilities of venture companies significantly mediate between the government's R&D support and the use of stock options by venture companies and the innovation performance of companies. These analysis results show that the government's R&D support and the use of stock option systems can play a meaningful role in the innovation of venture companies, and also show that the innovation capabilities of venture companies have an important meaning in the process of innovation. Therefore, it is necessary to continue the stance of R&D support for ventures and at the same time to introduce multi-faceted policy measures to support corporate capacity building, and legal and institutional maintenance and policy support to revitalize the stock option system need to be continuously provided.

• Asian Journal of Innovation and Policy
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• v.8 no.2
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• pp.180-207
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• 2019

This article explores the historical evolutionary process of the biopharmaceutical industry of Korea, and how intentional and unintentional policy interventions have triggered the creation of the industry's system dynamics and paved the way for the generation of a few global leading products, including biosimilar, as well as next-generation therapeutics of gene and cell. The policies cover the simple technology transfer of API synthesis to overcome the endemic parasitic disease, new substance patent adoption and new drug development consortia, human resource development, various national initiatives influenced by the Human Genome Project, and venture promotion schemes. The scope and implementation tools under these policies have been aligned and refined to transform traditional fine chemical-based pharmaceuticals, to stimulate large companies' participation and to create technology-based venture companies in the biopharma business of Korea.

• Asian Journal of Innovation and Policy
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• v.7 no.3
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• pp.564-580
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• 2018

The creation of academic start-up firms is an important and practical issue in the management of technology in Japan. The present study designs a model for creating academic start-up firms that fits into the social context. It focuses on the case of FIRST Program, an initiative that consists of 30 projects in innovative arenas, analyses the presence of large-scale public funding, and investigates the role of venture capitalists as support personnel in each project. As a result, the presence and significance of 'long-term escort' by an 'entrepreneurial venture capitalist (EP-VCist)' were confirmed as common features across the cases observed. EP-VCist refers to a person who can maintain and fulfil dual roles at a university and a venture capital firm, and who can take the lead throughout the venturing process as a risk taker. 'Long-term escort' is a form of support that reduces risks in the venturing process by supporting university researchers in the pre-entrepreneurial stage and by exerting a robust bridging role between a university and an industry.

• Journal of Korean Institute of Industrial Engineers
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• v.33 no.4
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• pp.424-429
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• 2007

The purpose of this study is to propose types of joint venturesthat can increase the competitivenessof a company in the marketplace. We examine the characteristics of individual venture enterprises based on technology. We considered 16 TEA in order to categorize companies into four groups. Next, we used a multinomial logistic regression model to identify the significant characteristics of a venture company that successfully predicts group membership. Based on this information, we propose various forms of joint venture which complement each other and produce higher overall competence. Our study can provide important feedback information to academics, Policy-makers.