earticle

영어

Ceaseless firm’s growing is homework for all managers. In particular, for start-ups, it is critical factors. This paper explores to find relationship between R&D activity and net profit, proxy of firm growth for SMEs, especially including InnoBiz firm designated by government as entrepreneurial activities firm. In order to achieve the research the aims, we apply both empirical analysis by using robust regression to estimate research hypothesis and interview for CEOs and researchers in research division in 263 firms located at Gwangju city in Korea. According to empirical findings patent, output of innovation of firm is negative relation with net profit in statistically. Even InnoBiz firm designated as entrepreneurial SMEs by government is not statistically significant. In addition, photonic industry considered as innovative industry sector is also negative relation with firm growth in terms of net profit in statistically. From the empirical findings, we can find that the relationship between net profit and patent is negative. This phenomenon could occur due to time lag of R&D. But rather, this result implies that SMEs in particular young firms are more likely to innovate because they are relatively high R&D intensity. In order to firm growth, firm could find variety of the managerial strategy to enhance innovative activities, to share the knowledge by using cluster’s indigenous positive effect embedded in region. In addition, it is needed to more effort to create the atmosphere of innovation in even traditional industry sectors as well as cutting edge technology.