Patent, R&D and internationalization for Korean healthcare industry

Using panel data, this study investigates how Patent and R&D expenditures affect internationalization in Korean healthcare industry. Korean healthcare industry is designated as one of the core bread and butter industries. Tremendous government investments in Korean healthcare industry are expected to increase Patent and R&D expenditures, causing internationalization for Korean healthcare industry. In material way, this study focuses on testing spillover effects between Patent and R&D expenditures on internationalization. Empirical analysis is done by the panel GLS estimation using 47 Korean healthcare firms' 7 years' panel data. As empirical results, we find internationalization of Korea healthcare industry is positively affected by Patent and R&D expenditures but their impacts are limited. In addition, we find there is a non-linear relation between Patent and R&D expenditures on internationalization measured by exports so that spillover effects are significantly confirmed. We propose several suggestions that government lead R&D policy does not effectively increase internationalization, and spillover effects of Patent and R&D expenditures differently affect internationalization following internationalization phase. Practically, government lead R&D investments should be disseminated to private sector to vitalize internationalization of Korean healthcare industry. •We test how Patent and R&D expenditures affect internationalization.•The Panel GLS estimation is employed.•Patent and R&D expenditures limitedly affect internationalization.•Spillover effects of Patent and R&D expenditures on internationalization are confirmed.