The Effect of Credit Guarantees on R&D Investment of SMEs in Korea

Arbeitspapier

Korean government has invested significant amount of resources through credit guarantee funds to promote SMEs survival, performance and R&D investment. This study attempts to identify determinants of provision of credit guarantees and estimate their effects on firms R&D expenditures. The relationship between duration of credit and firm's survival and performance is also investigated. Account is made for heterogeneity by various characteristics of firms when looking at credit guarantee and in-house R&D investment relationships. This study results in identification of factors that enhances efficiency of funds and their effects on firms' R&D investment behavior. It enables feedback effects on the public funds selection of firms guaranteed. A number of policy measures are proposed to promote a better balance between public and private investments to reduce the risk of business failure.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 7851

Classification and Topics

• Classification: Wirtschaft ; Estimation: General ; Financial Institutions and Services: Government Policy and Regulation ; Firm Performance: Size, Diversification, and Scope ; Management of Technological Innovation and R&D ; Technological Change: Government Policy
• Subject: Credit Guarantee ; SMEs ; public funds ; R&D investment ; firm performance ; firm survival ; Death Valley

Contributors, Location and Time

• Event: Geistige Schöpfung
• (who): Heshmati, Almas
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/89841
• Last update: 20.09.2024, 8:21 AM CEST