The Study on the Technology Finance Policy for Technology Development on the Value Chain Based Innovation System

The more information asymmetry is growing up, the more inefficiency of the financial allocation increases. This inefficiency becomes larger in the financial allocation of technology innovation because technology innovation has the characteristic of high risk and it makes the capital for technology riskier. The government intervention gets the justification in that it can correct this market failure and it enables the fast catching up, specially, in the developing country. The important point is that how the political intervention of government for the financial allocation is managed efficiently. Each country has used the various finance system to strengthen the national competitiveness and to promote the innovation activities. The government of Korea has supported the technology-based firm using the government policy funds. This study aims at the effect of several kinds of financing on the activities of technology-based firms and at the resolution for promoting the activities of these firms in technology financing policy. Further, econometric analysis based on the survey data in this paper will be able to help suggest to the role of the government system for financing of innovation firms.