@article{ART003335399},
author={Seongeun Lee and Byungkwon Lim and Chun-Kyu Kim},
title={The Impact of Technology Level on Financial Performance: Evidence from Korean Startup Firms},
journal={Industry Promotion Research},
issn={2466-1139},
year={2026},
volume={11},
number={2},
pages={137-150},
doi={10.21186/IPR.2026.11.2.137}
TY - JOUR
AU - Seongeun Lee
AU - Byungkwon Lim
AU - Chun-Kyu Kim
TI - The Impact of Technology Level on Financial Performance: Evidence from Korean Startup Firms
JO - Industry Promotion Research
PY - 2026
VL - 11
IS - 2
PB - Industrial Promotion Institute
SP - 137
EP - 150
SN - 2466-1139
AB - Technology-based startups are key drivers of economic growth, yet intensive R&D investment and commercialization risk create uncertainty in financial performance. This study examines how technological level affects startup financial outcomes and explores the moderating roles of patents and R&D success rates. Using data from 4,782 Korean firms within seven years of founding (2018–2022), drawn from the Small and Medium Enterprise Technology Statistics Survey, we employ OLS regression analysis. The results show that high- and advanced-technology startups do not exhibit significantly higher sales growth but record lower operating profit margins, reflecting short-term profitability pressures from R&D intensity and longer commercialization cycles. When technological performance variables are incorporated, registered patents enhance sales growth in high-technology firms, while R&D success rates improve operating profitability. Industry-level analysis further confirms that the contribution of technological performance to financial outcomes varies by technological classification. Although higher technological levels may compress short-term profitability, accumulated technological achievements, including patents and successful R&D, support long-term growth. Drawing on the Resource-Based View and Dynamic Capability View, this study highlights the mechanisms through which technological capability translates into financial performance and calls for multidimensional evaluation frameworks integrating technological and financial indicators.
KW - Start-up;Technology level;Financial performance;Patent;Technology development success rate
DO - 10.21186/IPR.2026.11.2.137
ER -
Seongeun Lee, Byungkwon Lim and Chun-Kyu Kim. (2026). The Impact of Technology Level on Financial Performance: Evidence from Korean Startup Firms. Industry Promotion Research, 11(2), 137-150.
Seongeun Lee, Byungkwon Lim and Chun-Kyu Kim. 2026, "The Impact of Technology Level on Financial Performance: Evidence from Korean Startup Firms", Industry Promotion Research, vol.11, no.2 pp.137-150. Available from: doi:10.21186/IPR.2026.11.2.137
Seongeun Lee, Byungkwon Lim, Chun-Kyu Kim "The Impact of Technology Level on Financial Performance: Evidence from Korean Startup Firms" Industry Promotion Research 11.2 pp.137-150 (2026) : 137.
Seongeun Lee, Byungkwon Lim, Chun-Kyu Kim. The Impact of Technology Level on Financial Performance: Evidence from Korean Startup Firms. 2026; 11(2), 137-150. Available from: doi:10.21186/IPR.2026.11.2.137
Seongeun Lee, Byungkwon Lim and Chun-Kyu Kim. "The Impact of Technology Level on Financial Performance: Evidence from Korean Startup Firms" Industry Promotion Research 11, no.2 (2026) : 137-150.doi: 10.21186/IPR.2026.11.2.137
Seongeun Lee; Byungkwon Lim; Chun-Kyu Kim. The Impact of Technology Level on Financial Performance: Evidence from Korean Startup Firms. Industry Promotion Research, 11(2), 137-150. doi: 10.21186/IPR.2026.11.2.137
Seongeun Lee; Byungkwon Lim; Chun-Kyu Kim. The Impact of Technology Level on Financial Performance: Evidence from Korean Startup Firms. Industry Promotion Research. 2026; 11(2) 137-150. doi: 10.21186/IPR.2026.11.2.137
Seongeun Lee, Byungkwon Lim, Chun-Kyu Kim. The Impact of Technology Level on Financial Performance: Evidence from Korean Startup Firms. 2026; 11(2), 137-150. Available from: doi:10.21186/IPR.2026.11.2.137
Seongeun Lee, Byungkwon Lim and Chun-Kyu Kim. "The Impact of Technology Level on Financial Performance: Evidence from Korean Startup Firms" Industry Promotion Research 11, no.2 (2026) : 137-150.doi: 10.21186/IPR.2026.11.2.137
