This paper empirically examines the effect of technology innovation policies on firms R&D investment in the Korean manufacturing industry. The Korean innovation survey conducted in 2002 found that government policy has a positive effect on firms R&D overall. In particular, the effect of the public R&D funding and government R&D project participation policy have a positive and significant effect on firms R&D, while tax incentive policy has a negative effect on firms R&D investment. Moreover, the joint effect of the government R&D project participation policy and technical support policy on firms R&D investment is positive. This joint effect implies that a complementary relationship exists between the two policies due to knowledge transfer and spillover.