Innovation and SMEs Patent Propensity in Korea

Junghee Han () and Almas Heshmati ()
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Junghee Han: Chonnam National University

No 395, Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

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 (search for similar items in EconPapers)
JEL-codes: C51 D22 O31 O32 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2015-01-27
New Economics Papers: this item is included in nep-com, nep-cse, nep-ent, nep-ino, nep-ipr, nep-pr~, nep-knm and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Innovation and SMEs patent propensity in Korea (2021)
Working Paper: Innovation and SMEs Patent Propensity in Korea (2015)
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