Exploring the Determinants of Government-Sponsored R&D Performance in Korea

ABSTRACT:

This article explores the determinants of government-sponsored R&D performance. Utilizing the resource-based view and transaction cost economics, it empirically examines how internal and external resources and collaborative partnerships influence academic and commercial outputs. Regression analysis of 10,612 government-sponsored Korean R&D projects reveals that internal (government and corporate funding, research capability, R&D type) and external (industry, region) resources are verifiably the major determinants of academic and commercial outputs. The findings also reveal that R&D collaboration is a major determinant of commercial outputs in a broader context.

KEYWORDS::

• collaborative partnerships
• resource-based view
• R&D performance

Notes

Classification by input, process, and output is a useful tool in program analysis. Chen (2005) suggested that a program system is generally understood as the cyclic process of these three elements within a given environment.

The research performance of government R&D projects in Korea is also based on performance statistics. Articles and patents are verified as representative performances upon which the evaluation is based (Ryu, Lee, Lee, & Seo, 2009).

In Korea, regulations on the management of national R&D projects are stipulated and executed for efficient project management. Accordingly, government funding of certain projects is defrayed by matching funds from participating companies that supplement the R&D cost.

Basic research is experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundation of phenomena and observable facts, without any particular application or use in view. Applied research is also original investigation undertaken in order to acquire new knowledge, but it is directed primarily toward a specific practical aim or objective. Experimental development is systematic work, drawing on existing knowledge gained from research and/or practical experience, directed to producing new materials, products, or devices, to installing new processes, systems, and services, or to improving substantially those already produced or installed (OECD, 2002).

For instance, Korea’s R&D performance measurement system applies the impact factor in related areas by dividing the technology area on the basis of articles from the projects (NSTC, 2009). This is understood to be the basis of the difference.

From the total output and added value of 2,068.8 trillion won and 852.0 trillion won, respectively, in 2005 Korea, the metropolitan areas took 906.8 trillion won and 411.3 trillion won. This explains the aggregate convergence of the metropolitan area.

Korea adopted a project-based system in 1995 to be applied to public institutes. Breaking out from the government’s direct-support method for public institutes, this enabled the institutes to participate in the competition for projects and to procure their own managerial costs. Whether this system corresponds to the inherent functions of the public institutes has been the subject of considerable discussion.

Data on government-sponsored R&D activities in Korea are collected from projects and utilized in establishing national R&D strategies. MSIP and KISTEP publish the results of the investigation and analysis annually, including the transitional trend of R&D, investment proportions in each technology and region, and performance, including articles and patents.

Government-sponsored R&D projects are included in superordinate programs with certain objectives, such as research on science and technology policy, training, and establishment of facilities and equipment. This study extracted 19,071 projects that are classified as technology-development programs. Of these, 10,852 projects were in the fields of biotechnology, information technology, and nanotechnology, 215 projects were classified as other than R&D, and 25 projects with insufficient data were excluded. Therefore, government-sponsored R&D projects constituted 55.6% of the projects in technology development.

To check the lagging effect of the dependent variables (SCI articles and patent applications) from the independent variables, we observed the patterns and characteristics of government-sponsored R&D project performance. Interestingly enough, project performance peaked in the very first year, then fell dramatically starting in the second year. Actual performance data from 2007 to 2010 (including SCI articles and patent applications) revealed that when compared to the first year, the second year’s performance decreased by 80%. Considering these characteristics, the study uses the dependent and independent variables.

The contribution ratio of a project depends on the judgment of a researcher. The verification process is conducted in collecting data for the investigation and analysis of the government-sponsored R&D activities to keep within the range of one (100%) in one performance.

Companies other than research institutions may participate in government-sponsored R&D projects. The participating companies pay the matching funds and procure distribution rights for the R&D performance, such as technology priority rights. In projects designed for commercialization, the government makes support a condition of the matching funds to maximize performance.

Government-sponsored R&D investigation and analysis data are classified as either basic research, applied research, or experimental development research under OECD (2002). This study applied the method of classification in two types, combining applied research and experimental development research.

Public institutes are institutes whose managerial costs are paid, in full or in part, by the government.

Additional information

Notes on contributors

Youngsoo Ryu

Youngsoo Ryu earned a doctoral degree in Public Administration at Hanyang University in Korea and is currently a senior research fellow in the Korea Institute of S&T Evaluation and Planning. His research interests are policy evaluation and performance measurement. His work has appeared in Korean Policy Sciences Review, Korean Public Administration Review, Korean Policy Studies Review, Korean Journal of Policy Analysis and Evaluation, Korean Public Management Review, and Journal of Korea Technology Innovation Society.

Sang Ok Choi

Sang Ok Choi is an Associate Professor in the Department of Public Administration at Korea University in Korea. His current research interests focus on the study of interorganizational relationships and performance management. His work has appeared in Public Administration Review, Administration Review of Public Administration, State and Local Government Review, Administration & Society, International Journal of Public Sector Management, International Journal of Emergency Management, and Journal of Homeland Security and Emergency Management.