(An) exploratory study on the birth of technology-oriented companies in Korea

Abstract

It is recognized that the new technology-oriented companies are important sources of technological innovations and regional development. The purpose of this thesis is to investigate, through exploratory and empirical means, the phenomenon of formation of such companies under Korea``s situation, compared with the cases in advanced countries. Major focus was placed on the characteristics of entrepreneurs, the spin-off pattern, and the relationships between the incubator organization and the new firm. 9 propositions were delineated on the basis of literature review. Data were collected on 48 enterprises in the machinery industry through the questionnaires and personal interviews. These firms have been specifically designated by the Korean government since 1979 as having introduced capital goods significantly important and appropriate to the local conditions. The major findings are as follows. First, the technology-oriented companies were started by founders who were in the middle thirties, and did not necessarily have a high formal education. Second, the founders had previous work experiences in the technical areas such as production or engineering department. Such experience operated as a major basis of new company formation. Third, most of the technology-oriented companies were started by a single founder rather than multiple founders, in spite of little previous work experiences in general managerial activity and weakness in business skills. Fourth, most of the founders spinned off from the small firms and in the same industry. But, after 1970, large firms started to play a incubating role of new technology-oriented companies. Academic organizations still did not play such a role. Fifth, the incubator organization determined the initial geographical location of the new firm. Sixth, founders utilized technical skills and knowledge obtained from the incubating companies significantly or decisively in developing their initial products that aimed at different marke...