The Impact of Firms' Risk-Taking Propensity on Technological Innovation: Focusing on Key Talent Policies

In today's rapidly changing business environment, innovation is essential for firms to achieve sustainable competitive advantage. Firms with a high propensity for risk-taking demonstrate superior capabilities in identifying and capitalizing on opportunities within uncertain environments, fostering innovation. This study empirically analyzes the relationship between firms' risk-taking propensity and technological innovation in the context of Korean manufacturing firms. Additionally, it examines the crucial role of key talent policies, focusing on two dimensions: internal talent development and the provision of incentives, in strengthening this relationship. The results indicate that firms' risk-taking positively influences technological innovation and that internal talent development and providing incentives play a significant role in further strengthening this relationship. These findings suggest that firms must be willing to take risks in pursuing technological innovation and that policies for effectively managing key talent are not just important, but crucial.