The purpose of this paper is to evaluate Korea government's technology innovation and development supporting program for Semi and Medium sized Enterprises(SMEs). This program is referred as a representative R&D program for SMEs in Korea. It should also be added that this program invest total 1,592 billion Won to 19,475 SMEs for the period from 1997 to 2009.

Korea government has been increased R&D investment on SMEs by encouraging innovation and strengthening competitiveness of SMEs. However, national R&D investment for SMEs is criticized due to the difficulty of finding out concrete performance. In addition, it just regarded as government subsidies. For the rational and effective operation of national R&D investment for SMEs, it is significant to evaluate the performance of program and operating system of this program, and check out whether the direction of national R&D investment for SMEs is corresponding to the SMEs' needs.
 

The results of evaluation are stated as follow; first, because of focusing on short term performance through imitation or improvement of existing technology, there are limits on increasing long terms competitiveness of SMEs through this program. Second, it is evaluated that the effect of facilitating SMEs' own R&D investment falls behind the level of the expectation. Third, in the way of charging technology rental fee on SME's it did not consider SME's condition, thus it could be lower the efficiency of R&D investment.