Open AccessA study on the relationship between R&D investment and firm performance in manufacture of sports equipment
Author(s) -
Yoon Hojung
Publication year - 2017
Publication title -
cheyuk gwahag yeon-gu/cheyug gwahag yeon'gu
Language(s) - English
Resource type - Journals
eISSN - 2233-7938
pISSN - 1598-2920
DOI - 10.24985/kjss.2017.28.3.623
Subject(s) - manufacturing , investment (military) , order (exchange) , business , competition (biology) , productivity , government (linguistics) , industrial organization , marketing , commerce , finance , economics , economic growth , ecology , linguistics , philosophy , politics , political science , law , biology
Purpose In recent years, competition among companies has become more and more important to maximize the competitiveness of companies by improving their productivity through technological innovation. Increasing competitiveness through technological innovation is becoming an essential requirement for survival of companies. In order for companies to innovate, it is necessary to spend R&D investment and the government is strengthening various policy supports to do this. Athletic equipment industry classified as manufacturing industry in sports industry. In this study, considering the fact that manufacturing industry occupies a large part of Korea's R&D investment, we compared R&D intensities with athletic equipment industry and other industries. We also examined whether R&D investment has affected firm performance. Methods The data used in the analysis were extracted from KIS-DATA with KSIC codes of companies classified as sports and athletic goods manufacturing industry in the 9th Korean Standard Industrial Classification of National Statistical Office. The analysis period is five years from 2011 to 2015 to look at the current status. Looking at the number of companies extracted by year, it was 42 in 2011, 45 in 2012, 46 in 2013, 48 in 2014, and 39 in 2015. Results Research showed that the intensity of R&D of athletic equipment industry was 1.22% in 2011, 1.63% in 2012, 1.51% in 2013, 1.53% in 2014 and 1.30% in 2015. This was lower than the manufacturing industry, which was a category of athletic equipment industry, and lower than that of similar small and medium sized enterprises. The correlation between R&D intensities and the sales growth rate of firms showed a positive correlation in 2011 and 2015, but the correlation is not strong. Conclusion R&D investment in athletic equipment industry was not actively taking place, and R&D investment did not have a significant effect on the performance of the company.