Knowledge sourcing and national technological development: The weak internationalization of R&D in South Korea

Abstract

South Korea has developed strong technological capabilities in firms based in the home country rather than through the R&D activities of subsidiaries in foreign countries. Investigating knowledge sourcing patterns in Korean firms offers new insights into cross-border knowledge sourcing in international businesses. Hence, this study investigates how firms in a home country with weak internationalization of R&D source international knowledge. Specifically, using patent data from the United States Patent and Trademark Office (USPTO), this study employs a probit model to examine the impact of Korea’s comparative technological development on the knowledge-sourcing behavior of its firms. The results show that Korea's comparative technological development influences firms' international knowledge sourcing, their technological diversity, and cross-country geography. Our findings have practical applications in developing public policies for emerging market countries to enhance their domestic capacity for international knowledge sourcing and keep up with the advanced technologies available in selected locations worldwide.