Different government support effects on emerging and mature ICT sectors.

Citation metadata

Date: Jan. 2022
Publisher: Elsevier B.V.
Document Type: Report; Brief article
Length: 309 words

Document controls

Main content

Abstract :

Keywords Government subsidies; Technological opportunity; Industry maturity; Firm age; ICT Highlights * We broaden government support study based on the industry evolution theory. * The government subsidy strategy should consider the industry maturity. * We suggest that the government enhances the support of young firms. * Subsidy effects at each R&D stage can be different with sectors and firm age. Abstract In fast-paced technological change, government R&D support has been enhanced in relation to new information and communications technology (ICT). The purpose of this paper is to investigate the different effects of government support on emerging and mature ICT sectors using the first difference autoregressive model. Technological opportunity is used to measure sector characteristics, which leads to an increase in government support effects in emerging ICT sector compared with the mature ICT sector. Additionally, government support has a more stimulating effect on private R&D expenditure for young firms than for incumbent firms. Interestingly, when R&D subsidies are divided into research and development, research subsidies for young firms are effective only in the emerging ICT sector, unlike the other ICT sectors. This study suggests that government should enhance R&D support to young firms, especially in emerging ICT sector with high technological opportunity, as broadening the government R&D support rationale and strategies study based on the industry evolution theory. Author Affiliation: (a) Technology Management, Economics and Policy Program Institute of Engineering Research, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 08826, South Korea (b) ICT Policy & Information Division, Institute of Information & communication Technology Planning & evaluation, 1548 Yuseong-Daero, Yuseong-gu, Daejeon 34054, South Korea (c) Business and Technology Management, Korea Advanced Institute of Science and Technology, 291 Daehak-ro, Yuseong-gu, Daejeon 34141, South Korea * Corresponding author. Article History: Received 29 December 2020; Revised 3 August 2021; Accepted 26 September 2021 Byline: Jeongwon Lee (a,b), Junseok Hwang (a), Hana Kim [tea112@snu.ac.kr] (c,*)

Source Citation

Source Citation   

Gale Document Number: GALE|A685518380