Economic Effects of R&D Investments

The Economic Impact of ADD's R&D Investments

Microeconomic Level

Total Microeconomic Impact

KRW 442.7 trillion

Force Augmentation


Technological Diffusion


General Cost Reduction


Public R&D
Cost Reduction

Investment Effect Index

Increased by 10.75 times
R&D Investments of KRW 41.2 trillion
  • ADD has turned its R&D Investment of KRW 41.2 trillion into an 11-fold economic benefit of KRW 442.7 trillion
    over the past 50 years.

    In comparison: The Korea Electric Power Research Institute's Investment Effect Index was estimated at 2.6 in 2004 (KEPRI,, 2004), and The National Institute of Standards and Technology's Investment Effect Index was estimated at 8.0 in 2005 (NIST, Engineering R&D Symposium, 05.4.6, 2005). "


Industry Level
  • Based on the Bank of
    Korea's estimations,
    ADD's 50-year investment
    of KRW 41.2 trillion
    converts into Production
    Induction Effect of KRW
    85.47 trillion, Value-added
    Induction Effect of KRW
    30.83 trillion, and
    Employment Induction
    Effect of 273,778 job


  • ADD's R&D investment
    impact over the past 50
    years accounts for 0.27%
    of the annual national
    economic growth — or
    3.83% of Korea's national
    average growth (7.05%) —
    and 0.33% of the annual
    national science and
    technology (S&T) growth
    — or 3.50% of Korea's
    national average S&T
    growth (9.43%).


Human Resource Development
  • ADD's R&D Investment
    produced economic
    effects worth KRW 0.76
    trillion in HRD via
    operating the Science and
    Technology Officers
    Program, various
    programs at 25 defense-
    specialized research
    centers (MA and Ph.D
    level) and the University of
    Science and Technology,
    and a number of internal
    technical training


National Interest
  • ADD's R&D continues to
    promote national interest
    via enhancing national
    security and defense
    science and technology

    * According to recent
    polls, the amount of
    "additional investment"
    which Koreans were
    willing to make to
    promote national interest
    by fostering national
    security, etc. was
    estimated at KRW 21,400
    per household or KRW 2.1
    trillion in total.