This study investigated the time-lag effect between the innovative activity and the performance of the nano-convergence industry, utilizing ‘Survey of the Nano-Convergence Industry’ Korean firm-level data. First, the performance would be achieved in the nano-convergence industry, only if an investment in research and development has been accumulated longer than a certain period. For a nano business to secure a sustainable competitive advantage, knowledge management is emphasized, which recognizes knowledge as the core resource of the business and systematically produces, manages and utilizes it. Second, there was a certain time-lag between an investment in a process and the performance of it. Since it takes a long time for an investment in the process to be connected to the performance, it is suggested that it is necessary to improve the effort for technology commercialization connecting the product of the innovative activity with the economic performance, and in particular, it is necessary to set up a policy and improve the system to support and promote the creation of a new market for nano businesses in this process.
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