Transcript PowerPoint 프레젠테이션

Technological Capacity Building of SMEs in
Sub-National Innovation System
UN-ESCAP
Beijing, China
Oct. 2006
Deok Soon Yim, Ph.D.
Director
Daedeok Innopolis Office, Korea
1
- Contents 1.
Conceptual Framework
2.
Needs for New SME Policies
3.
Daedeok Innopolis Case
4.
Conclusion and Discussion
2
Conceptual Framework
Innovation at different innovation
actors

Individual level






Laboratory level
Corporate level
Industry (sectoral) level
Regional level
National level
Global level
 Different Innovation Factors
3
Conceptual Framework
Value Chain of Innovation Process
Primary
Value
Secondary
Value
R&D
Knowledge
Transfer &
Application
Market
HRD, Information, Consulting,
Financing
Source: Deok Soon Yim (2002)
4
Conceptual Framework
Concept of Innovation System

It’s a System for innovation which is composed of
actors, processes, and culture.






Input
Process
Output
Actors
Interaction mechanism between actors(relationship)
S/W like culture, regulation, norms
5
Conceptual Framework
Concept of Innovation System
1.
Innovation processes are related with multiple
actors
2.

University, public R&D inst., industry

Community, financial inst., consulting firm, culture
Innovation processes are non-linear/networked
interaction about

S&T knowledge, R&D,

Money, people

Business development
6
Conceptual Framework
Concept of Innovation System
3.
New role of innovation actors

University: basic research + commercialization too

public R&D inst.: basic/applied research +
commercialization

4.
Industry: applied research/business + basic research too
Emergence of innovation cluster

Networked actors’ web

Cluster(innovation system) is more than the sum of
individual parts
7
Conceptual Framework
National Innovation System
Global S&T Environment
Government
National S&T
Environment
Universities
Industries
Knowledge,
Money,
People
Research
Institutes
Financial
Institutes
Other related
Actors
8
Conceptual Framework
National Innovation System

Actors: Government, Industry, University, Financial Institute,
Management Consulting Firm

Input: Money, People, Knowledge

Output: S&T knowledge --> Competitiveness

Government failure vs. Market failure vs. System failure

External and Internal Environment is important
9
New SME Policies
Environmental Changes
1.
Fast Changes of Science and Technology

Breakthrough technologies requires everything to be
changed from business, people, management etc.

2.
3.
Speed also matters
Globalization

MNCs are leading global value chain process

Innovation process is also being globalized
Increasing Competition

Not only MNCs but also SMEs are competing at global
market

Core competence comes from technology
10
New SME Policies
Traditional SME Policies
1.
2.
3.
SME policies were made in the old context

Stable environment

Domestic market and competitors
Functional, individual policies

HR supply, financial, marketing support

Low level technological support
Short-term oriented

Not focused on long-term technological capacity building
11
New SME Policies
Needs for New Paradigm
1.
SME policies in the new environment

Changing S&T, globalization, technological capacity
building
2.
Comprehensive policies

3.
System building rather than functional policy
Short-term oriented

Long-term and consistent policy
12
New SME Policies
SME Policy at Sub-national Innovation
System
1.
2.
3.
Sub-national Innovation System(SIS) is a small NIS

It has common characteristics of NIS

It is influenced by national policy
SIS is local/regional based

The effectiveness of SIS depends on local conditions

It is influenced by local policy
SMEs are important actors in SIS

SMEs employ people

SMEs create local value
13
Daedeok Innopolis
14
Daedeok Innopolis
Overview of Daedeok Science Town
Establishment
Location
Size
 1973. Nov. (Plan Announced)
 Daedeok, Chungcheongnam-do
 27.8 Km²  70.5 Km²
Employment
 23,558 (6,236 Ph.D.s) as of 2005
Tenant
Organizations
 Total 242 organizations including
21 Government Sponsored Research Institutes
39 Private Research Institutes and 148 Ventures
Major
Research Area
 IT (40%) BT (14%) Material Science (9%)
Chemical Engineering ( 8%) Energy resource (8%)
Status
 Mecca and symbol of Korea’s Science and Technology
 Economic and industrial growth
 Benchmarking model for developing nations
15
Daedeok Innopolis
Major Characteristics of DST
Driving Force
Main Innovator
 Central Government Initiated
 Government Research Institute + KAIST
Start-ups
 Spin-offs from GRIs
 Technology-based ventures
 Approx. 800 companies
Interaction
among actors
 Very low  becoming active
 Formal and informal groups
Master Plan
New legal status
 No (Physical or Operational) Master Plan
 Island Approach (No community Zone +
Separation from surrounding region)
 No Initial Regional governmental support
 Special R&D Zone (2005)
 Introduction of New Management Body
 Cluster-supporting Projects
16
Daedeok Innopolis
How does an
innovation cluster evolve?
Stage
Pre-Cluster
Characteristics
Few firms with very limited links among themselves. Little
economic impact. Anchor companies emerging in region.
Emerging
Cluster
Firms creating links and organizing among themselves to form
industry associations and alliances.
Expanding
Cluster
Growing linkages and critical mass. Economic impact
expanding. Networking is spontaneous.
Restructuring
Cluster
High inter-firm links. Cluster spawns new cluster-ettes and
begins to adapt in changing market.
Source: SRI – What economic clusters are and why are they important?
17
Daedeok Innopolis
Is innovation cluster evolved or
developed?

Artificial cluster  natural cluster?

Can artificial cluster survive without external continuous
support?
 Example?

Value Chain

Can any firm has all the strength in all value chain?
 Strength in some value chain only?
 Is it possible to extend the strength in one value chain to
other value chain?
18
Daedeok Innopolis
Evolutionary Process

Initial Conditions
 Location, Technology, People, Culture, Venture
Capital and Consulting Firm, Other
Infrastructure
 Down-stream Evolution (Yim, 2000)
 From Production to Research
 Up-stream Evolution (Yim, 2000)
 From Research to Production
19
Daedeok Innopolis
What are the factors influencing the
formation of an innovation cluster?

Historical circumstance

Unusual, sophisticated, or stringent local demand

Prior existence of related supplier industries

Innovative companies
20
Daedeok Innopolis
Kuro industrial complex  Innovation cluster ?
Production
Complex (1970)
Kuro Digital
Complex (2006)
21
Daedeok Innopolis
Initial Conditions and Development
Central Government Initiated
 Government Research Institutes Focused
 Initial Condition
 Nothing and Planned
 Locational Advantages
 Middle of South Korea. Distance?
 Small market
 Pure S&T Island Approach
 Down-stream Evolution Process?

22
Daedeok Innopolis
What Daedeok Science Town has done
S&T Outcomes
Visible
S&T Knowledge
Outcomes
S&T Manpower
Invisible
National S&T
Infrastructure
Outcomes
Socio-Economic Outcomes
Venture Incubation
Promote S&T
Culture
23
Daedeok Innopolis
Examples
S&T Knowledge
 IT: PC, TDX, CDMA, ATM exchange (ETRI)
 BT: The research on DNA characteristics (KRIBB/KRICT)
 Energy: Korea's standard atomic reactor (KAERI)
 ST: leading-technology air crafts, artificial satellites (KARI)
S&T Manpower
 KAIST: 10% of total 20,000 Science Professors
20% of 6,400 private company researchers
S&T Infrastructure
 Build and Service over 55 Million R&D Information Database:
Over 56 Million Users Annually (KISTI)
 Setup and Maintain Industrial Standards (KRISS)
 Provide Mega Research Equipments (KBSI)
 Sponsor Research Projects and Funds (KOSEF)
Venture Incubation
 18 Venture Incubators (310 Residence firms)
 Assist Spin-offs and Start up companies (total 158 ventures)
 Contribute to regional economic development
S&T Culture
 Create S&T friendly Atmosphere
(EXPO, National Science Museum)
 Promote Public’s Understanding on the Importance of S&T
24
Daedeok Innopolis
Early Stage of Innovation Cluster:
“S” innovation curve
• Patents
• Venture Companies
900
25000
800
20000
700
600
15000
500
400
10000
cc
z
300
5000
Dom estic
Utility
International
0
97 98 99 00 01 02 03 04
200
Certified
100
0
00
01
02
03
04
Not
certified
total
25
Daedeok Innopolis
Early Stage of Innovation Cluster:
“S” innovation curve
 Many internal/external networks formed
 Small scale clustering
 Dedicated internet newspaper
 Collaborative/open culture
 International network
 World Techno-polis Association
26
Daedeok Innopolis
Changing Roles of Daedeok Science Town
Innovative
capability
Response to the
Development of
Advanced
Technologies
•
Emphasis on
Development of
Advanced
Technologies
• Focal Points for
the Linkages
between
Universities,
Industries, and
Research Institutes
•
•Promotion of
Mega-Sized
R&D Projects
•Assistance to
Corporate
R&D Activities
•Leading the
National R&D
Capability
through GRIs
1973
1978
Construction
of
infrastructure
1993
Expansion of
R&D Base
Utilization of the
S&T output
•
Promotion of
Venture Start-ups
•
year
1999
Creation of
Innovation
Formation of
Innovation
Cluster
27
Daedeok Innopolis
R&D Driven Innovation Cluster
Primary Value
Functions
Secondary Value
Functions
R&D
Production
Marketing
Human Resources / Information Supply
Venture Capital / Consulting / Etc.
28
Daedeok Innopolis
SWOT Analysis
Opportunities
Threats
-International Recognition
-Geographical Expansion
-Linkage with Surrounding Clusters
-Reinforcement of Transportation
-Technology Driven Economy
-Economic Recession
-Gov’t Support for other Regional
Clusters
-Increasing Overseas Competition
Strengths
Weaknesses
-30 Years R&D Experience
-Human Resources
-Hi-tech Ventures based on
Advanced Technology
-Support of Central Government
-Locational Advantage
-Excellent Research Environment
-Lack of Self-sustainability
-Lack of Interactions/Networking
-Immature Business Environment
-Lack of International Business
Environment
-Brain Drain
29
Daedeok Innopolis
What are the development factors of DST?
 First, strong government support
 A recent financial crisis in 1997 and
following restructuring process with
venture boom
 Introduction of Local self-government
system in 1995
 Introduction of Daedeok Innopolis Office
30
Daedeok Innopolis
Zhongguancun : Market + Being Global
31
Daedeok Innopolis
McDonald: Global Player
32
Daedeok Innopolis
Starbucks: Knowledge Place
33
Conclusion and Discussion
Conclusion and Discussion

Strong government commitment

Importance of system (not individual or
individual unit) and competitiveness

Benchmark developed countries but create its
own policy

Policy changes according to industrial
development (From S&T to industry and
innovation)

S&T think-tank to assist gov’t policy
34
Conclusion and Discussion
Conclusion and Discussion

Transition to open system internationally and clusterupbringing system domestically
From system formative Pperiod
to system Developmental Period
Global Innovation System
National Innovation
System
Changes in Technology
environment
Regionnal
Innovation
Cluster
Changes in Social
environment
Source: Young Ja Bae, Wi jin Song, Deok Soon Yim(2002)
35
Conclusion and Discussion
Conclusion and Discussion

Integrate regional innovation system to
national innovation system and finally to
global innovation system

Global division of roles at global
innovation system
 All the innovation policies have to be made
at the global level
36
Conclusion and Discussion
Conclusion and Discussion

Is the Gov’t support really necessary?
1. Then how long and how much?
2. Does it take long time to be developed as a self
sustainable innovation cluster?
3. It may depend on the location specific
characteristics (Technological capabilities,
Good universities, Refined and big market,
Venture capital, and etc.)
4. For the artificially designed innovation clusters
(without satisfactory initial conditions for
innovation), the infant R&D capabilities would
soon die out if there is not consistent support
form the Gov’t.
37
New SME Policies
Key Success Factors for the Development
of Sub-national Innovation System
1)
Research Capabilities
2) Research/Business Manpower
3) Research/Business Infrastructure
4) Financial Resource
5) Cooperative/Competitive Culture
6) Management and Vision
7) International Player (MNC)
8) Start-up Companies
38
New SME Policies
SME Policies at Sub-national Innovation
System
1.
2.
Strategic Mind Setting

Awareness for the importance of SIS in SME policy

It’s matter of survival not selection
Long-term, System-oriented Policy

The policy may take longer time to bring the results but
has to be consistent and system-oriented
3.
Technology Capacity Building

It may need benchmarking case

Policy should encourage the co-work between local
university and SMEs
39
Thank You!
Any Question?
40