An empirical model to assess the influence of the government's research and development program on Korean small and medium enterprise (SME) performance

Abstract

Purpose The purpose of this paper is to suggest an empirical model to assess the separate effect of the government's research and development (R&D) policy program in small and medium enterprise (SME) performance. Design/methodology/approach The paper reviews the R&D related papers and finds out the specific aspects of the Korean R&D policy program, classifying every R&D policy program and giving them unique names such as funds, technology and human resource support. Finally, the paper provides the whole empirical model and research questions for future studies. Findings First, the paper suggests the research model and several questions about whether the direct government funding of R&D policy program has had an effect on SMEs' business performance. Second, the interaction of direct government R&D funding, technology and human resource support are compared. Finally, a research model is suggested with proper research methodology. Research limitations/implications Owing to the research purpose, the paper ends with the suggestion of an empirical model. Panel data needs to be applied to verify the suggested model. Originality/value There are various papers regarding the effect of R&D investment from private and public sectors, but few papers exist about the causal relationship between the government R&D policy program and SMEs' performance.