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Analysis of Government R&D Contribution to the IT Industry

  • Informatization Policy
  • Abbr : 정보화정책
  • 2010, 17(1), pp.63-77
  • Publisher : NIA
  • Research Area : Social Science > Public Policy

SEO Hwan-Joo 1 Pilky Hong 2

1한양대학교
2서울디지털대학교

Accredited

ABSTRACT

This paper investigates the impact of the government R&D expenditure on the IT industry in Korea. The analysis of such impact can be used to derive the policy implications for the IT industry. The contribution of government R&D to the IT industry was analyzed based on the input-output table of the year 1990-1995-2000. The results show that the amount of the government R&D expenditure induced the IT industry to book twice greater production than it would have been in the absence of such government R&D expenditure during the period under investigation. It is also shown that job creation was strongly encouraged in the broadcasting equipment, software and computer-related services. During the period under the study, the composition of the workers in the IT hardware industry remained unchanged while the production increased significantly, which confirms the jobless growth in the IT hardware industry. The results of this study suggest that the government R&D should focus on improving the competitiveness of the intermediate good and parts industry.

Citation status

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