مقاله سال ۲۰۱۷

In industrial economics, Patent and research and development (hereinafter R&D) expenditures lead firms to internationalization because they improve firm’s innovation activities (Bleaney and Wakelin, 2002; Penner-Hahn and Shaver, 2005). As a result of high level of innovation caused by Patent and R&D expenditures, firms compete in export market and become internationalization (Aw et al., 2007, 2011).

In reality, however, the relationship between internationalization and Patent and R&D expenditures has remained little empirical findings or a puzzle. Ample previous studies do not clarify the distinction between government and firm level R&D expenditures effects on internationalization. García-Quevedo (2004) argues that public R&D differs from private R&D and Griliches (1981) criticize that examination of R&D effects mainly focus on firm level and US firms. Outstanding feature of Patent and R&D expenditures in emerging countries are that government designate strategic industry considered as a high value-added business such as healthcare industry. In emerging countries, tremendous capital investment and cutting-edge technology of high valueadded business depends heavily on government sector’s Patent and R&D expenditures requires.

Furthermore, many previous studies focus on the impact of R&D expenditures on Patent application (Cincera, 1997) or spillover effects of Patent (Bottazzi and Peri, 2003) and exports (Girma et al., 2008). However, we know little about that the spillover effects of Patent and R&D expenditures are differently applied in internationalization since Patent duration and the speed of R&D spillover. Our contribution stems from the investigation of these arguments and the purpose of study is to investigate the impact of Patent and R&D expenditures on internationalization of Korean healthcare industry using panel data.