A new approach to efficient ratio: A case of South Korea's research and development investment

Abstract

Previous studies generally indicate that increasing investment in research and development (R&D) positively affects economic growth. However, there exists limited discussion on the efficient ratio of R&D investment for basic, applied, and development research. Therefore, this study conducted an empirical analysis of the efficient ratio of R&D investment based on national data in Korea. In addition to different R&D activities, this study estimated the optimal ratio of financial source types according to public and private R&D. The results of this study indicate that the investment ratio in R&D activities and financial source types should be adjusted.