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This study focuses on the collaborative new product development (NPD) process between large firms and small and medium-sized enterprises (SMEs). It provides two types of the NPD processes, and suggests key success factors for each type. Recent research shows that the importance of collaborative NPD is more growing because it can integrate and utilize the other firms' innovations. Collaboration in NPD and strategic alliances are very crucial in open innovation paradigm. This study carried out case analysis on 8 collaborative NPD processes between large firms and SMEs. There are two types of NPD processes, i) collaborative NPD for supply and procurement and ii) partnership NPD for new business development. The processes of collaborative NPD follow three stages: i) relationship building stage, ii) capability confirmation stage, and iii) product development stage. The processes of partnership NPD follow two stages: i) relationship building stage and ii) co-development stage.
Major activities and key success factors (KSFs) of SMEs for collaborative NPD are business opportunity identification, partner's needs identification, continuous relationship development, trust building, and technological development capability. Furthermore, major activities and KSFs of large firms for collaborative NPD are potential needs identification, supply firms' technological assesment capability, providing information/people/resources to supply firms, providing product test environment, and strategic will. In partnership NPD, major activities and KSFs are strategic/resources fits between partners, clear division of roles, active communication, and the sharing scheme for the business results obtained through partnership.
This study suggests government policy guidelines to promote collaborative and partnership NPD and to foster the benefits of mutual cooperation. Large firms and SMEs should utilize the opportunities of these collaborative NPD alliances. Government should provide policies for connecting demand-supply between large firms and SMEs, increasing SMEs' capabilities, supporting trust building between large firms and SMEs, and creating cooperative culture and environment.

Transaction cost theory asserts that contracts should be tailored to fit the characteristics of transactions. Japan and US Business case studies are consistent with transaction cost theory. More specifically, US and Japanese firms have tailored contract mechanisms to reflect the characteristics of transactions, including the benefit sharing program, a formal incentive contract which committed the buyer to encouraging, reviewing, and acting on suppliers' innovative ideas quickly and fairly, and to sharing the benefits of those ideas with suppliers.
US public institutions also have tailored contract mechanisms to reflect the characteristics of transactions. The contract mechanisms varied from fixed price contracts through formulaic adjust mechanisms to incentive contracts providing a strong incentive for suppliers to continuously make their internal processes more efficient and innovative through splitting the benefits of innovation with suppliers.
I find that the incentive contracts are associated with greater innovation from suppliers, lower potential for suppliers opportunism for both private firms and public institutions.
Korean supply-networks have undergone dramatic changes during the last decade. however, the common practice for many Korean firms today is not to motivate the suppliers for innovation. Furthermore, almost all Korean public institutions do innovations without input from suppliers. The relationship between Korean public institutions and their suppliers can be characterized by competitive, arm's length relationships. If the Korean firms and public institutions want to stay ahead of the globally-competitive organizations through innovation, they can no longer afford to ignore the existing contracts' incentive problem. The most compelling implication of this study is that Korean organizations should tailor contract mechanisms to reflect the characteristics of transactions, and adopt various incentive contracts to encourage the suppliers' innovations.

Management succession has emerged as the key issue among SMEs with the rapid aging of the SME founders. The management succession, however, has not performed well due to excessive estate taxes and donation taxes, lack of successor fostering programs, and negative public attitude.
The failure of appropriate management succession will eliminate such intangible properties as know-how, accumulated technologies, etc., thereby causing the severe loss to our national economy.
A long time ago, developed countries recognized that a smooth management succession would be inevitable for the sustainable growth of their economy and competitiveness of SMEs as well as job security. So, they have made a dramatic change of policies toward estate tax and the training programs for successors.The Korea government, however, has not yet established systematic supporting rules for the management succession of SMEs because of its negative views on transferring of wealth inheritance to their offspring.
Given the roles SMEs play in our economy, we need to look at the management succession in a new approach in that they are driving force for the continued economic growth. It is necessary to lessen succession costs through the revision of estate tax and gift tax system against the productive SMEs assets. One of the priorities is to minimize the negative public sentiment toward wealth heritance. Education programs for nursing their successors should be established along with total informationand consulting service about management succession. In some cases, such alternatives as merger and acquisition (M&A) etc. should be sought to last for the long run.

Given the real difficulty of small and medium sized enterprises(SMEs) in independently collecting, analyzing, and utilizing intelligence regarding international environment and foreign market entry, it is worth paying attention to the intelligence support policy of France designed for improving international competitiveness of SMEs. The core of this policy is that, linking with the central government, the local government plays a major role in forming a network with various local economic entities and other public institutes, through which the kinds of intelligence that are needed by SMEs are collected or shared. The purposes of this research are that 1) we introduce the intelligence support policy of the French government for SMEs under the name of ‘intelligence territoriale’; 2) we discuss the cases of SMEs’ foreign market entry utilizing the intelligence support policy of France; 3) we derive some important implications for the Korean government and SMEs based on the French policy.

The purpose of this study is to examine the degree of earning management and the factors effecting on it in small and medium enterprises. I design the model based on prospect theory to perform the first objective and use the ratio of debt to capital, ownership structure, external audit, the consistency of financial statements for taxing and financing, et., as the factors effecting on earning management. The discretionary accrual, earning management index is measured by Jones model. The sample consists on about sixty thousand manufacturing companies meeting the requirements of SME' act.
The results confirm that sample companies manage earning widely without level to transfer the reporting performance form deficit condition to profit condition. The degree of earning management is stronger than that of large companies. Also, the ratio of debt to capital is significantly negative and Ownership structure is significantly positive. external audit and the consistency of financial statements for taxing and financing play the efficient role in controlling earning management of SME. This result is consistent in different year and different industry.

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While SME's labor shortage is fundamentally caused by a competitive weakness, it is also due to a wrong examination in the cause of mismatch between supply and demand of labor. This research paper reviews the factors for mismatch between supply and demand of labor which are viewed by three different perspectives including mismatches of reward, skill, and information. It also suggests the problems of enterprises, educational training institutes, and the government in order to solve SME's labor shortage with special emphasis on "human resource development(HRD) firm" .