On the sequential effects of R&D investment: Evidence from Korean IT industry

Abstract

Background/Objectives: In order to more systematically grasp output depending on R&D, it is needed to simultaneously and scientifically analyze a series of the process including production of technological output such as papers and patents depending on input of resources, promotion of commercialization, and ultimately creation of sales and employment. Methods/Statistical analysis: In order to systematically examine the relationships between input of resources, technological output, commercialization output, and ripple effects in the process of R&D, this study uses path analysis. The samples used in this study are 714 tasks that the Korean government supported with fund to promote the IT industry in 2009-2013, which was governmental R&D investment in the fields of media ICT and IT convergence technology. Findings: As a result of the analysis, it was confirmed that input resources including R&D investment money, periods of task performance, and numbers of participant researchers would have significant effects on production of technological output, and that technological output would partially influence commercialization output and ripple effects. Improvements/Applications: In order to produce technological output, a sufficient amount of money and time should be invested in R&D, and for expansion of commercialization output, it is needed to focus on patent output of technological output. In addition, as commercialization output is weakly related with ripple effects, it is necessary to inspect this issue after the end of R&D and try to make commercialization output lead to high ripple effects. © 2018, Institute of Advanced Scientific Research, Inc. All rights reserved.