Paper Title
HOW GOVERNMENT R&D SUPPORT DIRECTLY AND INDIRECTLY AFFECTS FIRM-LEVEL PRODUCTIVITY: EVIDENCE FROM ICT INDUSTRY

Abstract
Abstract - Using a balanced panel dataset for 208 firms over the period 2011–2022,this study examines the direct and indirect effects of public R&D subdidy on productivity at the firm level in the Korean ICT industry. The characteristics of the data were established through various panel diagnostic tests, and we set a dynamic SDM in the first difference. The SDM is estimated via the QML method. we demonstrate that the dependent variable follows both a dynamic path-dependent process (τ=0.567, p=0.003) and a spatially integrated process. Additionally, government R&D subsidies have direct andindirect positive effects on firms’productivity in the short and long run,respectively. Among firm heterogeneity, organizational slack also directly and indirectly affects firm-level productivity in the short and long run.Firm size has a positive spillover effect on productivity in the long run, but a negative direct effect on productivity in the short run. We propose implications based on the results and limitations. Keywords - Government R&D Support, Firm-Level Productivity, Direct and Spillover Effects, A Dynamic Spatial Durbin Model.