The effect of characteristics of the Korean firms on the patent production function

Abstract

In this study, we estimate the input–output relationship between R&D investment and the number of patents granted to Korean firms by the US Patent and Trademark Office and the Korean Intellectual Property Office. Using pooled panel data and time-series data, we also examine the influence of the characteristics of the firms, viz. their export-orientation, the degree of foreign ownership and Chaebol-affiliation on the input–output relationship. It was found that the elasticities of US and Korean patents for R&D investment are 1.56 and 1.38, respectively. It was also shown that, in general, export-oriented firms, firms with higher foreign ownership and non-Chaebol firms have higher patent producing capability. © 2007 Taylor & Francis.