Diverse Tools of Industrial Policy in Korea

2020 ◽  
pp. 660-677
Author(s):  
Keun Lee
Keyword(s):  
Industrial Policy ◽  
Absorptive Capacity ◽  
Market Failure ◽  
Developed Countries ◽  
Technology Licensing ◽  
Infant Industry ◽  
Technology Import ◽  
End Products ◽  
Time To Learn ◽  
D Investment

The chapter presents a Schumpeterian and capability-based view of industrial policy, reflecting upon its practices in Korea over the last several decades. Given that it is typical for many developing countries to suffer from capability failure, industrial policy should go beyond correcting market failure and aim at overcoming capability failure. It is not about picking winners but about picking good students and allowing them time to learn and build capabilities until they are able to compete with incumbent firms from developed countries. This chapter discusses specific industrial policy tools practised in Korea at different stages of its development: tariffs to protect infant industry; technology import licensing to promote building of absorptive capacity; entry control guaranteeing rents for fixed and R&D investment; and public‒private joint R&D to break into higher-end products and sectors. While these tools look different in their concrete contents, they all allow some rents for the targeted sectors, which can be used to pay for building production capabilities in the case of tariffs or technology licensing in the 1970s, investment capabilities in entry control in the 1980s, and technological (R&D) capabilities in the case of public‒private joint R&D in the 1990s.

scholarly journals Threshold Effect of Economic Growth on Energy Intensity—Evidence from 21 Developed Countries

Energies ◽  
2021 ◽  
Vol 14 (14) ◽  
pp. 4199
Author(s):  
Jinjin Zhou ◽  
Zenglin Ma ◽  
Taoyuan Wei ◽  
Chang Li
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Urban Population ◽  
Energy Intensity ◽  
Developed Countries ◽  
Renewable Energy Consumption ◽  
Tertiary Industry ◽  
D Investment ◽  
Threshold Point

Based on threshold regression models, this paper analyzes the effect of economic growth on energy intensity by using panel data from 21 developed countries from 1996 to 2015. Results show that a 1% increase in GDP per capita can lead to a 0.62–0.78% reduction in energy intensity, implying economic growth can significantly reduce energy intensity. The extent of the reduction in energy intensity varies depending on the economic development stages represented by key influencing factors including energy mix in consumption, urbanization, industrial structure, and technological progress. Specifically, the reduction in energy intensity due to economic growth can be enhanced with relatively more renewable energy consumption and more urban population until a threshold point, where the enhancement disappears. On the other hand, the extent of the energy intensity reduction due to economic growth can be weakened with relatively more tertiary industry activities and more research and development (R&D) investment in an economy until a threshold point, where the weakening cannot continue. However, compared to the early stages represented by the low ends of renewable energy consumption, urban population, tertiary industry activities, and R&D investment, the later stages represented by the high ends of these key factors after a threshold show the weakened effect of economic growth on the decline of energy intensity. Hence, when an economy is well-developed, policy makers are advised to put fewer expectations on the role of economic growth to reduce energy intensity, while pursuing relatively cleaner energy, greater urbanization, more tertiary industry activities, and advanced technologies.

scholarly journals R&D value of Chinese manufacturing listed companies

2018 ◽  
Vol 1 (2) ◽  
pp. 241-262
Author(s):  
An Tongliang ◽  
Wang Wenyi
Keyword(s):  
Investor Sentiment ◽  
Listed Companies ◽  
Developed Countries ◽  
Chinese Stock Market ◽  
Content Type ◽  
Enterprise Value ◽  
Asset Value ◽  
Value Model ◽  
D Investment ◽  
D Value

Purpose The way to measure the value of an enterprise’s R&D investments remains elusive for theoretical and empirical study on innovation economics. The paper aims to discuss this issue. Design/methodology/approach This paper expands the asset-value model pioneered by Griliches (1981) and applies it for the first time to the Chinese stock market to calculate the value of R&D investment instilled by Chinese manufacturing listed companies (CMLCs) from 2003 to 2014. Findings The authors find that: the assets-value model can better explain the enterprise value composition of CMLCs; with equal input, the value of R&D is higher than that of tangible assets, and lower than that of organizational assets; compared with the developed countries, the R&D value of CMLCs is lower; and the R&D value of CMLCs saw a downward trend from 2007 to 2014. Originality/value Furthermore, by rationally estimating the value of organizational assets and non-tradable shares, and innovatively introducing semi-annual momentum indicators from the perspective of behavioral finance to control the influence of investor sentiment on enterprise value, this paper tries to develop the asset-value model and provides a feasible solution to the problem of measuring the value of Chinese enterprises’ R&D investment.

scholarly journals The Impact of Government Subsidies on Private R&D Investment in Different Markets

2020 ◽  
Vol 2020 ◽  
pp. 1-21
Author(s):  
Jinglve Wang ◽  
Guohua Zhou
Keyword(s):  
Private Investment ◽  
Key Factors ◽  
Government Subsidies ◽  
End Products ◽  
Game Theoretic ◽  
The Cost ◽  
The Impact ◽  
The Relationship ◽  
D Investment ◽  
Governmental Subsidy

In contrast to the econometric models that have been commonly used throughout a large portion of the literature, we develop six game-theoretic models to analyze governmental subsidy strategies in different market environments and to investigate the question of whether government subsidies crowd in or crowd out private investment in R&D activities. Based on realistic situations, we classify governmental subsidy strategies into three types, namely, no subsidy provided, subsidies provided based on the price of the end products, and subsidies provided based on the cost of R&D. In addition, according to whether competition exists in the market, we classify markets into monopoly markets and duopoly markets. Our research shows (a) that the relationship between government subsidies and private R&D investment is deeply impacted by the form of the subsidies used; (b) that the characteristic value of the R&D project and the competitive environment of the market are the two key factors that should be considered when governments decide which form of subsidy to employ; and (c) the optimal amount for each type of subsidy.

scholarly journals A game-theoretical model of multisubject industrial policy

2018 ◽  
Vol 55 ◽  
pp. 01019
Author(s):  
Victoria Akberdina ◽  
Grigoriy Korovin ◽  
Aleksandra Ponomareva
Keyword(s):  
Game Theory ◽  
Theoretical Model ◽  
Industrial Policy ◽  
Evolutionary Game Theory ◽  
Quantitative Assessment ◽  
Evolutionary Game ◽  
Developed Countries ◽  
Policy Formation ◽  
The State ◽  
Scientific Justification

The vector of industrial policy developmen aimed at the transition from the domination of the state to the involvement in its development of all stakeholders is relevant in developed countries. Such an approach requires an additional scientific justification, confirming its feasibility. The purpose and objectives of the paper is the development within the framework of game theory a model of relationships of subjects interested in the industrial policy based on their interests, strategies, areas of conflict and areas of consensus. The study used a multi-subject approach, which implies the existence of a number of independent stakeholders with their own goals and strategies. The methodology of evolutionary game theory (EGT) was used to analyze the interests of the stakeholders of their coincidences and conflicts. The process of formation of industrial policy identified three possible points of equilibrium. The interaction between the state and enterprises is formalized as a game in a normal form, the functions of utility of the players and the equation of replication dynamics are presented. To formalize the problem and finding the equations of the replicative dynamics, we have considered the problem in a general form for the continuous asymmetric games. In terms of content, the results and decisions can be used as a characteristic of the space for the creation of multiple mutually acceptable agreements between real and potential participants in the process of industrial policy formation. It is possible to further analyze the model to obtain a quantitative assessment of the factors that have the greatest impact on the motivation of the interaction participants.

scholarly journals The Impact of OFDI on the Technical Complexity of High-tech Industry Export in Home Country

2020 ◽  
Vol 214 ◽  
pp. 02012
Author(s):  
Chunxiang Liu ◽  
Yalan Gao
Keyword(s):  
Developing Countries ◽  
Data Model ◽  
Home Country ◽  
Developed Countries ◽  
Dynamic Panel Data ◽  
High Tech ◽  
High Tech Industry ◽  
The Developed Countries ◽  
The Impact ◽  
D Investment

This paper calculates the technical complexity of high-tech industry export in 38 countries from 1997 to 2017, discusses the mechanism of OFDI on the technical complexity of high-tech industry export in the home country, and empirically tests the impact of OFDI on the technical complexity of high-tech industry export in the home country by using the System GMM method of dynamic panel data model. The results show that OFDI can improve the technical complexity of high-tech industry export in the home country. After further analysis, it is found that OFDI can only significantly improve the technical complexity of high-tech industry exports from developing countries, but to a certain extent inhibit the developed countries. In addition, FDI, R & D investment, human capital, openness to the outside world and self owned technology can promote the export technology complexity of a country’s high-tech industry, while the impact of capital endowment on the export technology complexity of developed and developing countries’ high-tech industry is different.

scholarly journals REALITY AND PERSPECTIVES OF PUBLIC PARTICIPATION IN URBAN PLANNING AND DESIGN PROCESSES / VISUOMENĖS DALYVAVIMO URBANISTINIO PLANAVIMO IR PROJEKTAVIMO PROCESUOSE REALIJOS IR PERSPEKTYVOS

2011 ◽  
Vol 3 (3) ◽  
pp. 59-66 ◽  
Author(s):  
Matas Cirtautas
Keyword(s):  
Urban Planning ◽  
Public Participation ◽  
Developed Countries ◽  
Planning System ◽  
Design Processes ◽  
Planning And Design ◽  
Conflict Situations ◽  
Urban Planning And Design ◽  
Planning Processes ◽  
Time To Learn

Lithuania is not the only country where public contribution to urban planning and urban design processes is highly procedural and formalistic. Unidirectional and inflexible cooperation between participants of urban planning activities is common in various countries. Cross-purposes and conflict situations once boosted emergence of innovative and effective methods for decision making in urban planning processes in developed countries. Now it’s time to learn from these examples and creatively adopt them for purposes of long-term optimization of our national urban planning system. Paper describes some marginal activities in urban planning and design processes and disputes a growing impact of public participation in development of cities and urban regions.

Small–Business Group Formation as an Entrepreneurial Development Model

2009 ◽  
Vol 33 (3) ◽  
pp. 645-667 ◽  
Author(s):  
Christian Lechner ◽  
Christophe Leyronas
Keyword(s):  
Small Business ◽  
Market Failure ◽  
Business Groups ◽  
Developed Countries ◽  
Business Group ◽  
Management Style ◽  
Medium Size ◽  
Entrepreneurial Firms ◽  
Theoretical Approaches ◽  
Related Diversification

Why do small–business groups in developed countries exist? Research has shown the strong economic impact of business groups throughout the world but remains heavily focused on large–business groups and on emerging economies. Theoretical approaches to explain the existence of highly diversified business groups range from market power to the resource–based view and include market failure, transaction costs, agency theory, and cultural embeddedness. These approaches, however, are not very appropriate to explain the existence of small to medium–size firms in developed countries. What we know is that these smaller groups exist and that they are largely the outcome of related diversification. We investigate relatively small and young–business groups organized in a holding structure. What are the perceived benefits of this kind of group for entrepreneurs and how can we explain the phenomenon theoretically? Based on case study research, we argue that the small–business group is both the outcome and the antecedent of growth. It enables, and helps to realize and manage the growth of entrepreneurial firms. The enabling function consists in increasing reputation, attracting complementary resources that facilitate the exploitation of new opportunities, overcoming overembeddedness, and dealing with coopetition (concurrent cooperative and competitive relationships with another company). The group is also the outcome of realized internationalization and related diversification. Interestingly, for the emergence of the small–business group, just as important as diversification is the integration of activities as well as the separation of closely linked activities. Finally, the small–business group corresponds to an entrepreneurial management style. The main contribution of this article is to link organizational structure to the management and growth of entrepreneurial firms.

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