earticle

영어

The lifespan of the enterprises is decreasing over the years. This means that the success of the past does not necessarily guarantee the survival of the companies. Therefore, companies pursue technological innovations in order to survive from the fierce domestic and international competition. They also try to gain competitive edge in the market or reduce production costs through technological innovation. In the era of the Fourth Industrial Revolution where the industry is newly changing its structure, the technological innovation is gaining more importance. Only the ones who successfully go through the technological innovation can adjust to the new industrial landscape, and those who don’t will disappear from the market. Technological innovation is very important for the government as well. It is beneficial for the government to have the companies that are competitive in the global market through technological innovation, because they can contribute to the domestic economic growth by increasing tax revenue and employment. Therefore, governments support the domestic companies to enhance technological innovation performance while regulating them for socio-economical reasons. This paper empirically analyses the role of the government in increasing the technological innovation performance, mainly focusing on 4,000 Korean manufacturing companies. For the analysis, Korean Innovation Survey (KIS) provided by the Science and Technology Policy Institute (STEPI) is used. Based on the empirical analysis, it was found that governmental support can provide positive effect on both product innovation and process innovation. On the other hand, government regulations showed negative effects on both kinds of innovations. Finally, government policies had a controlling effect on the relationship between regulations and product innovation, and between government support and process innovation as well. The results from this paper can give strategic insights to the companies’ top level management on how to utilize the governmental innovation support and regulations. Moreover, the paper can be helpful for the government in developing technological innovation policies that can foster higher performance of the companies.