Which is the most effective innovation protection method for different types of product innovation?Evidence from South Korean manufacturing firms

Figures & data

Table 1. Summary of variables

Variables	Definitions
Dependent variables
Yij	Effects of different purpose of product innovations made by each firm during 2007–2009 (from 1 = very low performance to 5 = very high performance) Yi1 is the effect of product quality improvement Yi2 is the effect of product cost reduction Yi3 is the effect of product diversification, Yi3 is the effect of pioneering a new market,
Independent variables	(0 = not using, from 1 = very low using to 5 = very high using)
PATi	Degree of utilizing patents
UTIi	Degree of utilizing utility models
DESi	Degree of utilizing designs
SECi	Degree of utilizing confidentiality
COMi	Degree of utilizing complex designs
PREEMi	Degree of utilizing market preoccupation
Control variables
FIRM_SIZE	Log transformed value of the average number of total employees in 2007–2009
RD_PERS	Percentage value of the number of dedicated research personnel compared to the total number of employees in 2007–2009
RD_EXPN	Log transformed value of the average value of total R&D expenditures in 2007–2009
INTR_RD	Dummy variable for whether internal R&D is used in product innovation (0 = internal R&D not used, 1 = internal R&D used)
COOP	Dummy variable for whether R&D cooperation with external partner is used in product innovation (0 = cooperation is not used, 1 = cooperation is used)

Table 2. Descriptive statistics and correlations

Variables	Mean	SD	PATi	UTIi	DESi	SECi	COMi	PREEMi	FIRM_SIZE	RD_PERS	RD_EXPN	INTR_RD	COOP
PATi	3.463	1.215	1.000
UTIi	2.843	1.430	0.531	1.000
DESi	3.065	1.399	0.388	0.368	1.000
SECi	3.190	1.305	0.363	0.366	0.416	1.000
COMi	2.940	1.468	0.292	0.347	0.357	0.583	1.000
PREEMi	1.846	1.592	0.355	0.411	0.353	0.384	0.434	1.000
FIRM_SIZE	1.958	0.615	0.048	0.200	0.018	0.123	0.128	0.145	1.000
RD_PERS	9.979	11.007	0.065	0.076	0.114	0.104	0.101	0.104	−0.160	1.000
RD_EXPN	2.651	0.915	0.104	0.183	0.093	0.163	0.180	0.148	0.603	0.239	1.000
INTR_RD	0.920	0.271	0.083	0.104	0.043	0.058	0.045	0.086	0.016	0.083	0.049	1.000
COOP	0.338	0.473	0.063	0.100	0.069	0.079	0.107	0.090	0.140	0.043	0.132	−0.413	1.000
Quality	1.923	1.641
Cost	2.519	2.063
Diversification	1.339	1.733
New Market	2.559	1.860

Table 3. Estimation results of innovation protection methods (2010 KIS)

	Product Quality Improvement		Product Cost Reduction		Product Diversification		Pioneering New Markets
	B	Std. Err.	B.	Std. Err.	B.	Std. Err.	B	Std. Err.
FIRM_SIZE	0.174***	0.062	0.286***	0.108	0.484***	0.093	0.452***	0.097
RD_PERS	0.001	0.003	0.029***	0.005	0.006	0.004	0.020***	0.004
RD_EXPN	0.052	0.042	0.359***	0.073	0.034	0.063	0.068	0.065
INTR_RD	0.119	0.114	0.229	0.198	0.349**	0.171	0.022	0.178
COOP	0.073	0.066	0.295**	0.114	0.191*	0.099	0.090	0.103
PAT	−0.023	0.028	0.065	0.049	0.023	0.042	0.159***	0.044
UTI	0.128***	0.025	0.095**	0.043	0.026	0.037	0.113***	0.038
DES	0.047**	0.023	0.037	0.040	0.077***	0.035	0.065*	0.036
SEC	0.057**	0.028	0.015	0.048	0.084**	0.041	0.155***	0.043
COM	0.081***	0.024	0.077*	0.042	−0.027	0.036	0.111***	0.038
PREEM	0.625***	0.021	0.156***	0.036	0.217***	0.031	0.030	0.032
Constant	−0.704	0.162	−0.759	0.281	−1.121	0.242	−0.701	0.253
R-Squared	0.569		0.180		0.136		0.183
F	83.84		30.46		21.96		31.26

Table 4. Estimation results of innovation protection methods (2014 KIS)

	Product Quality Improvement		Product Cost Reduction		Product Diversification		Pioneering New Markets
	B	Std. Err.	B.	Std. Err.	B.	Std. Err.	B	Std. Err.
FIRM_SIZE	0.142	0.062	0.471***	0.091	0.187	0.109	0.002	0.107
RD_PERS	0.001	0.003	0.005*	0.002	0.005	0.003	0.001	0.003
RD_EXPN	0.019	0.042	−0.138**	0.061	0.157**	0.073	0.225***	0.072
INTR_RD	0.127	0.114	0.107	0.144	0.315*	0.174	0.063	0.171
COOP	0.038	0.066	0.081	0.120	0.112	0.144	0.223	0.142
PAT	0.065	0.043	0.065	0.030	0.079	0.048	0.136***	0.047
UTI	0.017	0.039	0.038	0.036	0.028	0.037	0.052	0.043
DES	0.014	0.055	0.039	0.050	0.072	0.035	0.025	0.060
SEC	0.077**	0.032	0.138***	0.033	0.024	0.041	0.050	0.039
COM	0.072	0.067	0.079	0.062	0.011	0.036	0.063	0.073
PREEM	0.100**	0.363	0.222***	0.040	0.067*	0.036	0.088**	0.035
Constant	1.401	0.213	−0.759	0.196	0.705	0.236	0.916	0.253
R-Squared	0.147		0.197		0.065		0.085
F	13.20		16.38		4.69		6.23