The purpose of this paper is to present theoretical hypotheses on the determinants of R&D activities of subcontracting small firms and to test those empirically. The hypotheses Presented in this paper are consisted of firm characteristics, product typ...
The purpose of this paper is to present theoretical hypotheses on the determinants of R&D activities of subcontracting small firms and to test those empirically. The hypotheses Presented in this paper are consisted of firm characteristics, product type and sales method, funds raising method, and technological factors. We tested those hypotheses with the method of t-test and test on estimates of legit and probit model. And we used the raw data of `Small and Medium Business Survey` of Small and Medium Business Administration(SMBA) and Korea Federation of Small and Medium Business(KFSB). We found that firm size and technological complexity are the most important determinants of R&0 activities of subcontracting small firms, and that subcontracting dependence, export ratio and technological interchange are also important determinants.