earticle

영어

This paper empirically examines the effects of R&D investment on productivity using dynamic panel data (DPD) model for Korea's listed and non-listed manufacturing companies over the period from 2000 to 2007. In estimating the DPD model, it controls for simultaneity and inconsistency caused by distributional problems of R&D spending by employing two stage Tobit-GMM method. Empirical results suggest that for all firms, either in high-tech or low-tech industry, R&D expenditure is positively associated with enhancement of productivity but R&D investment has a larger effect on labor productivity in high-tech firms than in low-tech firms. This implies that government R&D subsidy would have a stronger effect on productivity for high-tech firms,especially small and medium sized firms, rather than for low-tech firms.