What matters in technology leakage in small and medium enterprises: the case of Korea

Technology leakage in small and medium enterprises (SMEs) is a critical issue because while the number of main technologies in SMEs is small, these technologies are crucial to their survival. Related factors must be identified to prevent technology leakage from SMEs. In this paper, we use logistic regression to find significant factors in Korean SMEs, focusing on three aspects: characteristics of the technology, prevention strategy, and firm’s R&D characteristics. We use a survey conducted by related national institutions. According to the results of our empirical study, interaction effects among the factors of technology characteristics have highly significant effects on technology leakage. In particular, the interaction effect between the time needed to imitate the technology and the stage of business growth appears to have the highest influence on technology leakage. Based on our results, detailed strategies for preventing technology leakage are inferred in order to help SMEs prioritise their resources.