Effects of technology cooperation activites on R&D capabilities and innovation performance: a Korean manufacturing industry case

Abstract

In this study, the relationship between external R&D collaboration, internal R&D capability, and innovation performance was researched, focusing on the manufacturing industry. The manufacturing industry was divided into high-technology and low-technology to analyze the different levels of effectiveness of external R&D collaboration and internal R&D capability. In addition, external R&D collaboration was divided into companies and public R&D institutes. Firms are suppliers, demanders, and competitors while public R&D institutes are universities and, national research institutes. Twenty-two manufacturing industries were analyzed by using data from the Korean Innovation Survey (KIS) 2008. The results of the analysis revealed that both internal R&D capability and external R&D collaboration of enterprise positively contribute to innovation performance. In high-technology industries, internal R&D capability is effective for innovation performance but not effective for collaboration with firms. On the other hand, in low-technology industries, only collaboration with public R&D institute is effective for innovation performance. In addition, collaboration with public R&D institutes is more effective in terms of improvement of internal R&D capability in low-technology industries than in high-technology industries. The theoretical implications were also reviewed along with the results and a number of further implications for policy makers are suggested.