Why Do Firms Implement Responsible Innovation? The Case of Emerging Technologies in South Korea.

With the rise of responsible innovation (RI) initiatives in firms that commercialize innovation in recent years, experts have argued that in order for RI to succeed, practical issues must be considered. Accordingly, this paper explores RI from the perspective of Korean emerging technology development firms. Although social benefits are expected from RI, which aims to reduce the side effects of innovations for society, the implementation of RI requires changing firms' existing rules and routines. Therefore, predicting benefits and costs from the firm's perspective can shed light on the likelihood that RI will succeed. In this study, through an expert survey, the relative weights of RI-related benefit criteria (technological level, economic performance, and public contribution) and cost criteria (anticipation, reflexivity, inclusion, and responsiveness) were analyzed. On this basis, trends in priorities for RI levels were evaluated from present and future perspectives. Unexpectedly, firms recognized that even if constraints such as RI impose greater costs, they will eventually bring greater benefits. This finding indicates that innovation induced by RI overcomes obstacles, offsets costs, and then finally increases firms' competitiveness, and that firms are willing to do good for society through RI. In the long term, a firm's ethical activities may eventually result in improved performance by its management. Therefore, it can be concluded that, even if RI is enforced in a compulsory manner, it is highly likely that it can be well established and promoted even in firms that consider profit first.

Why do consumers respond to eco-labels? The case of Korea.

Although eco-labels were introduced with the intention of encouraging eco-friendly purchasing behavior by consumers, they have had little effect on consumers' purchasing decisions, and therefore a significant gap exists between eco-label awareness and actual purchasing behavior. The aim of this study was to analyze consumer preference, in terms of public and private values, for two types of Korean eco-label that have been administered by the Korean government since 1992. Analyses were based on a structural equation model, employing the theory of reasoned action. Data were collected by survey. The results indicate that although general consumers are highly aware of the publicly valuable information that eco-labels provide, privately valuable information exerts far greater power over their purchasing intentions. Therefore, a supplementary policy that converts public value to private value could promote the purchase of eco-labeled products.