Scandinavian Working Papers in Economics

Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

No 395: Innovation and SMEs Patent Propensity in Korea

Junghee Han () and Almas Heshmati ()
Additional contact information
Junghee Han: Chonnam National University
Almas Heshmati: Centre of Excellence for Science and Innovation Studies (CESIS), Jönköping International Business School, & Sogang University

Abstract: This paper analyzes the patent propensity as an outcome of innovative activities of regional SMEs. To achieve the aims, we apply robust regression analysis to estimate the models to test 5 research hypotheses using 263 firm level data located at Gwangju region in Korea. Our empirical results show that a firm’s industry characteristics, such as machinery and automotive parts industry, is negatively related with propensity to patent innovation. Also, unlike expectations, the InnoBiz firms designated as innovative SMEs by the government are not performing differently than general firms. Only the CEO’s academic credentials are positively related with propensity to patent. From the findings, we can conclude that patenting propensity is not directly related with a firm’s characteristics but mainly to CEO’s managerial strategy. Also, we cannot find evidence for policy effectiveness from public support given to InnoBiz firms as part of the state policy to nurture photonic industry to boost regional economic development. Given the lack of strong policy effects, a new industry policy should be considered to actively promote SMEs innovativeness.

Keywords: Patent propensity; Photonic Industry; SMEs growth; R&D; innovation; InnoBiz; Korea

JEL-codes: C51; D22; O31; O32

18 pages, January 27, 2015

Full text files

cesiswp395.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Vardan Hovsepyan ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-01-23 23:31:35.