Policy support to the Small and Micro firms of Korea

It is not difficult to understand why small and medium firms receive so much attention. Because SME provides about 80 percent of private sector employment so SME performance is an important economic and social factor. Despite this, it is subject to higher risk and mobility than those at the large firms. This paper is analyzes the relationship between firm growth measured as growth in employment, sales and production and firms age, size and R&D investment. The growth and its relationship with the determinants is linked to industrial policy in Korea. Empirical results are based on an unbalanced panel data covering period 1999-2002. Results show significant relationship between growth, size and age of firm.