earticle

영어

This paper empirically examines the effects of R&D investment and government subsidy on technological innovation activities in the poisson and negative binomial models. In doing that, it employs the count data on patents which are collected from raw data from Korean Innovation Survey 2008 conducted by the STEPI and financial statement data of Korean manufacturing industries over the period from 2005 to 2007. The empirical results are as follows. First, government support, either by financial subsidy or by tax deduction, is found to have statistically significant effects on innovation activities proxied by patents, considering endogeneity of government policy variables. This implies that government policy could play an important role in private innovation activities. Second, the empirical results show R&D intensities proxied by R&D expenditure per employee turns out to have significant effect on patent activities when the endogeneity of government policy variables are considered. Third, estimated coefficients for firm size in the patent model are also found to be statistically significant, which implies that R&D investment in large firms should lead to more patents. Finally, there are substantial spillover effects of other firms' innovation activities on SMEs and venture companies' patents.