Does diversity make collaborative subsidies effective? ICT sector in Korea. Issue 1 (2nd January 2022)

• Record Type: Journal Article
• Authors: Lee, Jeongwon; Hwang, Junseok; Kim, Hana
• Is Part Of: Industry and innovation. Volume 29:Issue 1(2022)
• Page Start: 1
• Page End: 24
• Publication Date: 2022-01-02
• Subjects: R&D collaboration -- partner diversity -- R&D subsidies -- ict sector; H25 -- O25 -- O31 -- O38; Industries -- Periodicals; Industrial management -- Periodicals; Industrial policy -- Periodicals; 338.005
• DOI: 10.1080/13662716.2021.1941801
• Languages: English
• ISSNs: 1366-2716

Abstract

ABSTRACT: Research and development (R&D) collaboration becomes essential as technology becomes more complex, and technological change occurs at an unprecedented rate in high-tech sectors such as information and communication technologies (ICT). However, no concrete evidence exists on the benefits of collaboration diversity in terms of government support. Therefore, this study investigates whether a firm's innovation increases not only as R&D collaboration partners' diversity increases but also as firms engage in cross-sectoral R&D collaboration. Government subsidies for ICT firms that collaborate with other firms and research institutions at the same time have significantly positive effects on firm performance. Interestingly, cross-sectoral collaborations increase innovation activity. The results suggest that firm innovation can be efficiently achieved through R&D partner diversity, and the R&D subsidy scheme needs to focus on collaboration with diverse R&D partners with different knowledge to generate innovative outcomes.