|
KMID : 0387320100200010183
|
|
Korean Journal of Health Policy and Administration
2010 Volume.20 No. 1 p.183 ~ p.203
|
|
|
An Analysis on the Effect of the Government R&D Subsidies on the Private R&D Investments : in the Case of the Pharmaceutical Industry
|
|
Sakong Jin
Shin You-Won
|
|
|
Abstract
|
|
|
|
The purpose of this study is to analyze the effect of the R&D subsidies by the government on the private firms’ R&D investments in the Korean pharmaceutical industry, which are supposed to have positive effects on their economic performance. We also estimate the relationship between the private firms’ R&D investments and firms’ economic outcome. Empirical analysis is done by Error Component 2 Stage Least Squares(EC2SLS) estimation using 43 pharmaceutical firms’ 8 years’ panel data. The elasticity of the government R&D subsidies on the private R&D investments is 0.021%, which we cannot say ’efficient’. Also R&D investments have positive effects on the economic outcome of the pharmaceutical firms, as we expected. We propose several suggestions in the conclusion for the efficient way of government R&D subsidies to induce more private R&D investments.
|
|
|
KEYWORD
|
|
|
pharmaceutical industry, government R&D subsidies, private R&D investments
|
|
|
FullTexts / Linksout information
|
|
|
|
|
Listed journal information
|
|
 
|