The Determinant of Investment in Research and Development Analyze - on its Market Structure and Financial Factor -

기업의 연구개발투자 결정요인분석 -시장구조 및 재무적 요인을 중심으로-

  • Hwang, Eun-Jeong (Department of Economics Graduate School Sookmyung Women's University)
  • 황은정 (숙명여자대학교 대학원 경제학과)
  • Published : 2007.06.30

Abstract

The purpose of this thesis is to analyze empirically the relationship between market structure, measured by Herfindahl-Hershmann Index(HHI), and financial factors, and innovation in Korean industry panel datasets for 2000-2006. Results show that debt ratio and scale of the firm has a consistent positive effect on the investment in research and development. As more scale of the firm is getting bigger, the investment in R&D decrease. Also, as more debt ratio of firm rise, the investment for innovation increase. Concentration ratio, the HHI and the classification factor of High-tech industry and Low-tech industry has a consistent positive effect on the innovation. Factors affecting the investment in research and development include market structure and characteristics of industry as well as the internal affairs of the firm.

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