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The Spillover Effect between Productivity of SMEs and Large Firms

Author Young-Jin Ro, Wonkyu Kim, Jin Woong Kim Date 2013.12.30 Page 64
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Productivity is known as the one of the most important engines
for achieving sustainable growth of an economy. It implies the
efficiency of the production process or the innovation in the
economy. That is, through improving productivity, the present
generation can meet its needs without hampering the resources
for future generations. Therefore, productivity is a critical issue in
current and future economic growth. As Cho, Kim, and Schreyer
(2012) suggested, the productivity growth has headed up the real
income growth in Korea since the middle of the 2000s. Also, they
emphasize that the transition from ‘input-led’ to ‘productivity-led’
growth will intensify more because of a fast trend toward an aging
society and a low birth rate. This issue is not just relevant problems
in Korea, but also in the rest of the world.