This paper applied methodological procedures used in intra-industry trade literatures to analysis of dynamics in trade performance. Applied to data representing South Korea's bilateral trade with 19 countries from 1996 through 2004, this methodological alternative makes possible an intricate understanding of the role of innovation investment on trade performance. The analysis shows that South Korea's R&D investments focus on price competitiveness in production of less innovative commodities. South Korea's outward FDI seeks market accessibility, while inward FDI seeks efficiency in production where South Korea produces more innovative commodities.