[2019-02]

The Opposite Effects of R&D Cooperation on Technological and Financial Performance in SMEs

Joowoong Park

Moon Soul Graduate School of Future Strategy, KAIST

Jihyun Kim

Moon Soul Graduate School of Future Strategy, KAIST

Hyungsoo Woo

Moon Soul Graduate School of Future Strategy, KAIST

Jae-Suk Yang

Moon Soul Graduate School of Future Strategy, KAIST

Abstract
This study analyzed R&D cooperation and its spontaneity in the context of SMEs performing national R&D projects. Using the resource-based perspective theory, we found there was a positive effect of R&D cooperation on financial performance. However, there was a negative effect on technological performance because of the lack of absorptive capacity. With regard to spontaneity, though large SMEs tend to have more R&D partners without governments ntervention, small SMEs need their government's intervention to have more R&D partners. Based on the size of SMEs, government should implement different polices for R&D cooperation in order to increase firm sales.

Keywords: SME, R&D cooperation, firm size, spontaneity, performance