Analysis of changes in the contribution rate of manufacturing industry growth by technological level due to change in R&D investment

This study empirically analyzed the changes in the contribution rate of each production factor to the production of added value in the manufacturing industry due to economic and social changes by considering the determinants of each production factor. In particular, the difference in the change in the contribution rate of production factors in the manufacturing industry by technological level was identified over a period to determine the impact of economic and social changes. External shocks due to economic and social changes were considered as decrease in R&D research and development investment. It was found that low-technology level manufacturing was more vulnerable to external shocks than high-technology level manufacturing. Also, external shocks had the characteristic of reducing manufacturing growth by being linked to a decrease in the contribution rate of related production factors as well as a decrease in the contribution rate of R&D. In addition, the role of total factor productivity in maintaining manufacturing value-added production due to the decrease in the R&D contribution rate was identified. In addition, the R&D contribution rate decreased more due to the spread of COVID19 compared to the financial crisis, and the role of total factor productivity in offsetting this was emphasized.