A Study on Determining High-tech Venture Growth: Comparing the Role of R&D and Advertising Expenditure by Panel Data Approach

This research implements factor analysis of determining high-tech venture growth by studying 92 high-tech KOSDAQ listed firms from the year of 2005 to 2008. The research results are as follows; first of all, the expenditure of R&D and advertising at these firms have significantly positive impacts on the growth of high-tech venture firms. However, R&D expenditure compared to advertising one have greater effect on the growth of high-tech venture's sales volume. In specific, by stochastic panel model, 1%increase of R&D expenditure leads to 0.21% of sales volume increase, while 1%increase of advertising expenditure leads to 0.087% of sales volume increase. Second,the research result shows that the high-tech ventures outside of Daeduck Area have the greater growth of sales volume by increasing R&D expenditure compared to advertising expenditure according to the overall sample analysis.