earticle

영어

This paper empirically explores the effects of various government policy instruments on innovation firms’ productivity using Korean 2008 and 2010 Community Innovation Survey data conducted by the STEPI. The empirical results summarized as follows. First, government policy variables are found to be endogeneous, which implies that simple OLS estimation of the productivity model should produce biased results and thus lead to inappropriate policy suggestions. Second, empirical results shows that most government technology promotion policies are positively associated with firm productivity directly, implying that the policies cause to correct market failure, rather than lead to government failure. This indirectly means that the government policies promote technology development activities, rather than crowd out them. Third, using the non-InnoBiz firm sample, only one policy variable is found to be statistically significant, but for the Inno-Biz firm sample, all estimated coefficients except two government policy variables are found to be significant. This implies that productivity effects of government policy can be mainly due to those from Inno-Biz firms.