Abstract: We study how South Korea’s first “mission-oriented” R&D program shaped innovation and economic outcomes after its implementation between 1992 and 2001. Using new textual data from archival sources and a language model to identify targeted and control technological classes, we exploit that some research projects were planned but not implemented due to budget shocks. We use a local projections event study to compare the outcomes of targeted technological classes relative to control classes. Despite the absence of differential trends before the program, targeted classes doubled their future-citation-weighed patenting output and tripled their real exports relative to control classes ten years after receiving program support. Our findings suggest that technology policy played a central role in South Korea’s transition to a knowledge-intensive economy.
Presented at: 2024 Mid-Atlantic International Trade Workshop (Federal Reserve Board of Governors, co-author presented), Washington Area International Trade Seminar Poster Session (George Washington U, co-author presented), Annual Meetings of the European Economic Association (Erasmus U Rotterdam, co-author presented), LACEA-LAMES Annual Congress (Universidad de la Republica, co-author presented), New Thinking in Industrial Policy: Perspectives from Developed and Developing Countries (Columbia U, co-author presented)
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