Transcript 슬라이드 1 - Sociedad de Fomento Fabril (Sofofa)

Korea’s Innovation System:
The Process of Evolution and New Challenges
March 16, 2004
Santiago, Chile
Joonghae Suh
Korea Development Institute
Korea’s Industrial Policy
 1960-1970s
- Direct Intervention  Nurturing Specific Industries
 Export industries in 1960s, Heavy chemical industries in 1970s
- Support & Protection Measures
 Financial/Tax Incentives, Import Regulations, Entry Barriers
 1980s
- Government intervention gradually reduced
- Emphasis on enhancing competition
 1990s
- Further Liberalization & Market Opening
- Further emphasis on investment in tech. development
Korea’s S&T Policy
 1960-1970s
- Building institutions
 KIST (1966); MOST(1967); KAIST(1973)
 Technology Development Promotion Act (1967)
 1980s
- National R&D Programs (NRDP, 1982)
- Private enterprises began to act
 1990s
- Mission-oriented R&D by line ministries
 Targeted, and top-down approach
- Private/public partnership in technology development
The technological capability building process in Korea’s machinery industry
1960s
– 1970s
The process of development
Technology imports
Production and R&D
Policy goal: establishment
of production base
Packaged technology:
turn-key based plants
Knock-down type
production system
Characteristics: heavy dependence Assembling technology
on imported technologies
OEM-dominated
Almost
R&D
Early
1980s
Policy goal: promotion of
self-reliance
Characteristics: Import-substitution,
localisation of parts/components
production
Late
1980s
– 1990s
Policy goal: export-promotion by
means of expansion of
domestic market
Unpackaged technology:
parts/components-related
technology
no
in-house
OEM/own brand:
high ratio
Product development
Operation technology
In-house R&D begons
Materials-related technology
OEM/own brand:
low ratio
Control technology
Product innovation
Characteristics: beginning of plant
exports, learning advanced and
core technologies
Design technology
Process improvement
High-quality product tech.
The changing relationship between TI and R&D
1997 Economic Crisis
 Structural problems accumulated over the previous
30 years of high economic growth
* Full-fledged democracy and market economy had yet to take roots.
 Korea had been slow to adapt to the rapidly
changing global economic environment in the 1990s
* High-cost, Low-efficiency  Less competitive products
 increase rate of unit labor cost (average in 1985-95) :
Korea 6.0%, Japan -0.5%, Taiwan 3.5%
* Current account deficit soared. (1996: $23 billion deficit)
Structural Reform in Four Pillars
- Corporate, Finance, Public and Labor -
Transparent
Corporate
Management
and
Restructuring
Injection of
Public Funds
into
Financial
Market
Innovation
&
Privatization
of
State-run
Enterprises
Flexibility
of
Labor
Market
New Challenges for Korea’s Innovation System
 Government
- Policy Coordination
- Devolution with Empowerment
 GRI
- Effective & Efficient Research
 University
- Education Reform
 Private Enterprises
- The Gap between LE & SME
- Manufacturing vs. Services
- Foreign Companies
Korea’s Public R&D System
NSTC
RAE of NRDP
MPB
OPM
R&D Funds
3 Research Councils
in S&T
Universities
Mission-related
Gov’t Institutes
S&T
GRIs
Private
Enterprises
2 Research Councils
in Hum. & Social Sc.
H&SS
GRIs
Characteristics (1) - Decentralized
 Distribution of government’s R&D budget in 2002
5.16 Trillion KRW
 4.3 Billion USD
Others
MOST
19%
21%
OPM
13%
MIC
10%
MOCIE
19%
MOE
13%
MOD
15%
Characteristics (2) - GRI System
 Chief organ of government’s R&D policy
 40% of Government R&D funds flow to GRI
- University = 25%; Business = 23%
 86% of GRI R&D funds are from government
- 37% are institutional funding,
the rest are contract-based
 Integration of GRI with university and business
 Being criticized
 Necessity of re-defining GRI’s role
The process of GRI development and its changing role
Period of Inception-beginning
(1960-1970)
Weak research capability of
private enterprises and
universities
Period of Structural Adjustment
(1980s)
Partial improvement in research
capability of private enterprises and
universities
Period of Take-off
(1990s)
Industry-led innovation system
Increased research capability of
universities
- Goal-oriented research in line
with technological demands from
the government and industry
- Adjusting the role and character as an
agency for implementing the
government’s R&D programmes
- More emphasis on future-oriented
large complex advanced technology
development
- GRI’s leading role in industrial
technology development
- Big R&D projects which require nationwide drive; central role in cooperative
research among industry-universityresearch institutes
-Rising necessity of redefining GRI
role and preparing new take-off basis
Research Imitation of simple technology in
Improvement of mature technology
area
growing industry
Imitation of future advanced technology
Source: MOST, Thirty Year History of Science and Technology, 1997
Development of future advanced
technology through creative research
Domestic
condition
Mission &
Role
New Role for Private Enterprises
 Chaebols, Korea’s large conglomerates, had been:
- Vertically integrated
- Diversified
- Leader in new businesses
- Leader in investment in capital and R&D
 They have changed since the financial crisis
- Vertical integration starts to dissolve
- Try to concentrate on more competitive business
- Not necessarily leading in new businesses
- Their leading role in investment is not diminished
 Venture Companies
12000
10000
8000
6000
4000
2000
0
1998
1999
2000
2001
 Corporate R&D Centers
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
1994
1995
1996
1997
1998
1999
2000
2001
 Comparison between 1997 and 2000
 R&D Expenditures/Sales (%)
3.5
3
2.5
2
1997
2000
1.5
1
0.5
0
S ME
LE
 Number of Researchers
60000
40000
1997
2000
20000
0
SME
LE
Any changes in the nature of SME’s R&D?
 SME’s Cooperative R&D is increasing
40
35
30
%
25
20
15
10
5
0
1990
1993
1997
1999
Emerging Patterns of
Innovation Networks and Clusters in Korea
 Assets from the past
- Industrial Complexes
- Private Enterprises
- Financiers
- Public Research Institutes
- Higher Education Institutions
- Supporting Organizations
 Bottlenecks & weaknesses
- Dirigiste approach
- Regional disparities
- Research at HEI
- Intermediary institutions
- SME’s technological capabilities
 New Opportunity?
- Corporate restructuring after the financial crisis
- Increases in FDI
- Development of local democracy/regional economy
 Industrial Complexes in Korea
Number of
complexes
Number of resident
firms
Number of
employees (1,000)
National Industrial
Complex
32
Provincial Industrial
Complex
156
Agro-Industrial
Complex
295
Total
9,407
6,392
2,974
18,773
521.7
289.7
98.9
910.4
483
 Government initiation : “Big Push”
 Great regional disparities : Capital and SE Regions - 3/4
 Assets or bottlenecks ?
Q: Under what conditions clusters possible?
Industrial Agglomerations in Korea
Inchon
machinery
automobile
mechatronics
new materials
environment
Kyonggi South-west
Seoul
Icheon • Yongin
clothing
semiconductor
Cheongjoo
semiconductor
Kumi
machinery
automobile
electronics
IT hardware
mechatronics
fine chemicals
bio-tech
precision instruments
environment
textile
home electronics
IT Hardware
Daegu
textile
Pohang
steel
new materials
Cheonan
Woolsan
fine chemicals
automobile
shipbuilding
fine chemicals
Daejeon
fine chemicals
Boosan • Kimhae
foot ware
clothing
new materials
aerospace
Kwangjoo
home electronics
Yeosoo • Kwangyang
petro-chemicals
steel
Keoje
Changwon • Masan
shipbuilding
machinery
home electronics
mechatronics
precision instruments
aerospace
New Directions in Industrial & Innovation Policy
 Regional Innovation System
 Cluster-based, bottom-up approach
 Devolution with Empowerment
- Strengthening research capability of universities
 Government’s investment in R&D
 Basic research: 19% (2002)  25% (2007)
 Goal-oriented, top-down approach
- IT, BT, NT are areas of high priority
- Performance evaluation
 Private Enterprises
 Narrowing the Gap between LE & SME
 Promoting knowledge-intensive services
 Internationalization of R&D: both inward & outward
More Information?
Please visit www.kdi.re.kr
or email [email protected]
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