Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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Evaluation of Program Effectiveness via Path Analysis : Focused on Plant Engineering Program

경로분석을 이용한 사업의 효과성 분석 : 플랜트엔지니어링사업을 중심으로

  • Received : 2017.03.08
  • Accepted : 2017.06.19
  • Published : 2017.06.30
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Abstract

When evaluating effectiveness of a R&D program, there is a tendency to simply compare the performances of the beneficiaries before and after the program or to compare the differences in the performances of the beneficiaries and the non-beneficiaries before-after the program. However, these ways of evaluating effectiveness of a program have some problems because they can not differentiate between complement effect, which facilitates corporate R&D investment, and substitute effect, which, literally, substitutes corporate R&D investment. Therefore, these problems could bring about wrong policies concerning R&D programs. In this paper, a new approach using path analysis is suggested as a means to overcome these problems and it is utilized, as an application, to evaluate the effectiveness of Plant Engineering Program conducted by Ministry of Trade, Industry & Energy, Korea. First, the direct impact of government R&D investment on corporate R&D investment is analyzed, through which it is identified which of crowding-in effect (complement effect) and crowding-out effect (substitute effect) is dominant. Next, the direct effect of government R&D investment on corporate performance and the direct effect of corporate R&D investment on corporate performance is analyzed respectively. Finally, by combining the two previous analysis, the total effect of government R&D investment on corporate performance is identified. As a result, it turns out that, in Plant Engineering Program, crowding-in effect is more dominant than crowding-out effect and that Plant Engineering Program has definitely positive effect on the beneficiary in terms of corporate performance indirectly and directly.

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References

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