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Manufacturing Firm Diversification into Industry 4.0 Technologies : Evidence from Korea
The objective of this empirical paper is to identify factors that affect the technological transition of firms toward industry 4.0 technologies (I4Ts). Following the Principle of Relatedness, the paper uses a unique dataset of Korean manufacturing firms‘ patent, financial, and market information to study Korean manufacturing firms’ technology upgrading. The paper identified firms that have successfully developed capabilities in I4Ts and found that firms that possessed higher related technologies were more likely to diversify into I4T domains. In addition, using data on whether the firms received government support for research and development (R&D) activities, it was found that government support turned out to be more significant for firms that possessed low technological relatedness.
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