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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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    1. Jinyoung Kim & Gerald Marschke, 2004. "Accounting for the recent surge in U.S. patenting: changes in R&D expenditures, patent yields, and the high tech sector," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(6), pages 543-558.
    2. Jinyoung Kim & Sangjoon John Lee & Gerald Marschke, 2009. "Relation of Firm Size to R&D Productivity," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 8(1), pages 7-19, April.
    3. Bronwyn H. Hall & Zvi Griliches & Jerry A. Hausman, 1984. "Patents and R&D: Is There A Lag?," NBER Working Papers 1454, National Bureau of Economic Research, Inc.
    4. Blind, Knut & Edler, Jakob & Frietsch, Rainer & Schmoch, Ulrich, 2006. "Motives to patent: Empirical evidence from Germany," Research Policy, Elsevier, vol. 35(5), pages 655-672, June.
    5. Jeroen de Jong & O'Shaughnessy & Patrick Vermeulen, 2003. "Innovation in SMEs: An Empirical Investigation of the Input-Throughput-Output-Performance Model," Scales Research Reports N200302, EIM Business and Policy Research.
    6. Panzar, John C & Willig, Robert D, 1981. "Economies of Scope," American Economic Review, American Economic Association, vol. 71(2), pages 268-272, May.
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    More about this item

    Keywords

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

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