Abstract
Today, innovation is achieved by challenging the existing paradigm through cross-field collaboration, and R&D innovation plays a particularly crucial role. This study analyzed the effects of R&D innovation activities on business management performance in South Korea and examined the role that patents play in various R&D innovation activities. Panel regression and moderating effect analyses were conducted on small- and medium-sized venture enterprises that undertook new technology projects over five years (2015–2019). The results showed that R&D innovation activities had a significantly positive effect on both revenue, an indicator of business growth, and operating profit, an indicator of profitability. This implies that such activities play a positive role in management activities. Thus, enterprises should consider R&D innovation activities from a business growth strategy perspective. Additionally, the analysis showed that a firm’s capacity to hold patents on R&D innovation activities has a positive moderating effect on business management performance. This study is significant, as it reveals the cause-and-effect relationship between R&D innovation actives and business management performance as well as the role of various types of innovation. The results could help enterprises to seamlessly implement innovation activities in the future.
Highlights
The intent of our study is to identify whether the effectiveness of R&D activities, as an independent variable, on business management performance, as a dependent variable, varies depending on whether an enterprise holds patents
This indicates that the R&D activities performed by an enterprise
A moderating panel regression analysis was conducted to identify whether the patents held by small- and medium-sized venture companies would have a moderating effect
Summary
Korean industry has recently faced multiple difficulties, including a massive restructuring of its shipping industry and the GM Korea crisis, which have had severe economic ripple effects across the country. These challenges have caused a sense of crisis to spread throughout the manufacturing sector [1]. According to the December 2019 Annual Industrial Activity Trends Report released by Statistics Korea, the average operating rate in the domestic manufacturing sector fell 0.7 to 71.9% year-over-year—the lowest since 1998, when the rate fell to 67.6% due to the International Monetary Fund financial crisis that was in full swing [1]
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