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The Impact of Government Technology Development Assistance Policy on the Innovation of SMEs: Focusing on the Gyeongbuk Region, South Korea

  • Korean Society and Public Administration
  • Abbr : KSPA
  • 2012, 23(2), pp.329-357
  • Publisher : Seoul Association For Public Administration
  • Research Area : Social Science > Public Administration

SangJi Kim 1 Doh, Soogwan 2 Kim, Byung-kyu 3

1경북테크노파크
2대구가톨릭대학교
3안동대학교

Accredited

ABSTRACT

This study explores the impact of government technology development assistance policy on the innovation of SMEs in the regional industries of South Korea. We use the technology development assistance fund as a proxy of the Korean government policy for supporting SMEs in regional industries. The innovation of SMEs is measured by technological innovations including the number of patents, utility models, trade mark registrations, new design registrations, as well as annual R&D expenditure. The results from the empirical models, which control for factors that are theorized to affect the innovation of SMEs, indicate that a positive relationship exists between government technology development assistance and patent acquisitions/new design registrations of regional SMEs in the Gyeongbuk region. Network links to universities also have a positive relationship with patent acquisition and new design registrations of regional SMEs. The results of the study imply that government needs to continuously increase investment in R&D for regional SMEs, and that regional SMEs need to establish networks with local universities through industry-university collaboration to promote technology innovation.

Citation status

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