Analysis of Managerial Efficiency According to the Support System: Based on Electronics and Telecommunications Research Institute’s Startups

Abstract

Economic growth and job creation through startups are becoming increasingly important. To this end, the government is expanding startup support projects and establishing a startup support system at government-funded research institutes. However, questions regarding the effectiveness of startup support projects and systems continue to be raised. To determine the effectiveness of this startup support system, this study analyzes the managerial efficiency of startups before and after implementation of the startup support system, targeting institutes in the Information and Communication Technology (ICT) field. Specifically, the present study examines the managerial efficiency of 88 startups established before and after the startup support system at the Electronics and Telecommunications Research Institute for three years after its establishment. Data envelopment analysis was used to calculate managerial efficiency. The model was used as an input-oriented model, and both returns-to-scale models were confirmed. Total assets and equity were used as input variables for management efficiency, and sales and net income were used as output variables. The results reveal that the managerial efficiency of startups established with support from the startup support system was higher than those established before the startup support system. Even as time passed after establishment, this difference in managerial efficiency was maintained, and startups established under the startup support system were more stable. In addition, ICT startups show a decreasing trend in managerial efficiency after their establishment. This decrease in managerial efficiency was statistically significant for up to one year after its establishment. Managerial efficiency decreased two years after establishment, but the difference was not statistically significant. Additionally, the decline was smaller for startups that received support from the startup support systems. In other words, preliminary and follow-up support through the startup support system is effective for startups within research institutions. These results emphasize the need for a startup support system and suggest that support should continue.