How Government R&D Support Directly and Indirectly Affects Firm-level Productivity: Evidence from ICT Industry

• 영문명: How Government R&D Support Directly and Indirectly Affects Firm-level Productivity: Evidence from ICT Industry
• 발행기관: 한국무역연구원
• 저자명: 성봉석(Bongsuk Sung) 송우영(Woo-Young Song)
• 간행물 정보: 『무역연구』제20권 제3호, 43~53쪽, 전체 11쪽
• 주제분류: 경제경영 > 무역학
• 파일형태: PDF
• 발행일자: 2024.06.30

국문 초록

Purpose - Although firm-level studies on the relationship between public R&D support and innovation enhancement have been conducted in a heterogeneous firm framework, most prior studies focus on the direct effect of public R&D support on innovation, meaning that little attention has been paid to investigating the indirect (spillover) effect of public R&D support on innovation alongside the direct effect. This study investigates how public R&D support directly and indirectly affects productivity at the firm-level in the Korean ICT industry using a balanced panel dataset for 208 firms over the period 2011-2022. Design/Methodology/Approach - This study employs a dynamic spatial Durbin panel model (DSDPM) to test the relationships between the study variables, public R&D support, in-house R&D, export, organizational slack, firm size, firm age, and innovation (productivity). The DSDPM model is estimated using the quasi-maximum likelihood (QML) method. Findings - We demonstrate that the dependent variable follows both a dynamic path-dependent process (τ = 0.567, p = 0.003) and a spatially integrated process. Additionally, government R&D subsidies have direct and indirect positive effects on firms’ productivity in the short and long run, respectively. Among firm heterogeneity, organizational slack also directly and indirectly affects firm-level productivity in the short and long run. Firm size has a positive spillover effect on productivity in the long run, but a negative direct effect on productivity in the short run. Research Implications - Main result suggests that constant increase in productivity is the most crucial, in which government should make a considerable effort to promote the direct and indirect effects of public R&D efficiently and effectively, thereby ensuring constant productivity enhancement. Organizational slack is also the most useful aspect of firm heterogeneity that can directly promote a firm that spends available resources on its production process and further affect that of peer firms. The direct and indirect effects of firm size on productivity are mixed, with a negative direct effect and positive indirect effect in the short and long run, which indicates that increase in firm size becomes apparent to peer firms over time.

목차

Ⅰ. Introduction

Ⅱ. Basic Model, Data Measurement, and Data Source

Ⅲ. Empirical Analysis

Ⅳ. Discussion and Conclusion

References

키워드

Direct and Indirect Effects Dynamic Spatial Durbin Model Firm-level Productivity Government R&D Support