Journal of Open Innovation: Technology, Market and Complexity (Oct 2021)

The Effects of Patents on the Relationship between R&D Activities and Business Management Performance: Focus on South Korean Venture Companies

  • Seunghoo Jin,
  • Daeyu Kim

DOI
https://doi.org/10.3390/joitmc7040210
Journal volume & issue
Vol. 7, no. 210
p. 210

Abstract

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Today, innovation is achieved by challenging the existing paradigm through cross-field collaboration, and R&D innovation plays a particularly crucial role. This study analyzed the effects of R&D innovation activities on business management performance in South Korea and examined the role that patents play in various R&D innovation activities. Panel regression and moderating effect analyses were conducted on small- and medium-sized venture enterprises that undertook new technology projects over five years (2015–2019). The results showed that R&D innovation activities had a significantly positive effect on both revenue, an indicator of business growth, and operating profit, an indicator of profitability. This implies that such activities play a positive role in management activities. Thus, enterprises should consider R&D innovation activities from a business growth strategy perspective. Additionally, the analysis showed that a firm’s capacity to hold patents on R&D innovation activities has a positive moderating effect on business management performance. This study is significant, as it reveals the cause-and-effect relationship between R&D innovation actives and business management performance as well as the role of various types of innovation. The results could help enterprises to seamlessly implement innovation activities in the future.

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