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The Impact of Efficiency Parameters on Firms Innovative Activities: Evidence from Korean Firm-level data

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  • Seong-Sang Lee
  • Yeonbae Kim

    (Technology Management, Economics and Policy Program (TEMEP), Seoul National University)

Abstract

With the premise that patent data are reliable indicators of innovativeness, the empirical analysis of R&D?patents relationship is useful for monitoring the efficiency of the innovation process. This paper extends the research on the relationship between R&D spending and patent counts by estimating the impact of efficiency parameters. A data set from 1255 firms with nonzero R&D expenditures in Korea was studied. Results show that the difference in firms¡¯ innovative performance is attributable to firm-specific characteristics, including propensity to patent and firm size, and differences in efficiency parameters. They also indicate that firms that conduct patent searches before starting R&D activities obtain an average of 13.9% more patents with an increase of one unit on the ¡®patent search¡¯ scale. Results also show the importance of the role of IP managers and revenue splitting policy for employee-inventors in the innovation process.

Suggested Citation

  • Seong-Sang Lee & Yeonbae Kim, 2009. "The Impact of Efficiency Parameters on Firms Innovative Activities: Evidence from Korean Firm-level data," TEMEP Discussion Papers 200924, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Nov 2009.
    • Handle: RePEc:snv:dp2009:200924
    as

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    References listed on IDEAS

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    Keywords

    Incentive for employee-inventor; innovation process; innovative performance; IP manager; preliminary patent search; R&D-patents relationship;
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