The R&D expenditure for small and medium businesses continue to increase, however as the R&D investment doesn’t link to sales, it appears that the support of policy is essential to establish the ‘virtuous circle between business results of R&D investment businesses’ which is required for continuous growth.

According to the report on the ‘small and medium businesses’ R&D status and direction of investment support for sustainable growth’ issued by KISTEP through comparison and analysis of R&D investment, manpower, and result status of small and medium businesses with large businesses and businesses of middle standing, 49.9% (7582 companies) of small and medium businesses which implemented R&D activities showed the high degree of R&D intensity (research development expense occupies over 5% in sales), and in the case of 2010, the degree of R&D intensity for small and medium businesses was 3.36% that was higher than those of large businesses (2.25%) and businesses of middle standing (1.68%).