Mission-Oriented STI Policies in Korea

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1 Mission-Oriented STI Policies in Korea Conference on R&I Impact Vienna, Austria November 06, 2018 Yongsuk Jang, Ph.D. Senior Research Fellow

2 A Typical Vision Map (The 3rd S&T Basic Plan ( )) Vision Creative Science & Technology Goals 40% Contribution to Economic Growth 640K Job Creation 7 th Rank in World STI Competitiveness 1. Expand Public R&D Invest & Improve its Efficiency 2. Identify National Strategic Tech Strategies 3. Strengthen Creativity in STI Actions (Programs) 4. Assist Creating New Growth Engines 5. Create New Highquality Jobs

3 MOP Governance in Korea Vision MOP at National Level Goals MOP at Sectoral or Ministerial Level Strategies MOP at Agency or Institutional Level Actions (Programs) Annual Action Plan w/ Budget Appropriation

4 MOP Processes in Korea Long-term Plan Mid-term Plan Annual Plan Implementation & Monitoring Evaluation Impact Assessment

5 Evolution of Korean STI Policies and Orientations Economic Growth (Industrial Dev.) Global Challenges Societal Challenges Institutional Building Technology Catching-up S&T Leadership st 5-Year Economic Plan Korea Advanced Institute of Science (KAIS) Industrial Generic Technology Development Program (IGTDP) Financial Crisis MSIT Ministry of S&T (MOST) National R&D Program (NRP) Information and Communication R&D Program (ICRP) Deputy Prime Minister of MOST (OSTI) Korea Institute of S&T (KIST) Technology Development Promotion Act Highly Advanced National Project (HAN) MEST & MKE

6 Korean Industrial Shifts Select and Focus Strategy 1980s 1990s 1970s 1960s Import Protection Foster exportoriented light industry Introduce new technology, expand technological capability Promote import liberalization Expand investment in technological development, training of skilled manpower Strengthen demand driven technological innovation Establishment of nationwide IT infrastructure

7 STI Meets Industrial Demands Demand Side Industry-Oriented STI Strategy Self- Sustain Import- Subs. Mfg. Capacity Industrial Seeds Open Market Higher Valueadded Industrial Diversificat ion Light Industries Heavy Industries Assembly & Processing Industries IT Industries New Growth Engines Import Protection Export- Orient Import Tech. Tech. Capability Expand R&D Skilled HR Demandoriented Innovation Endogeno us Tech. Supply Side

8 A PPP Case: TDX Development Project ( ) MOST (M. of S&T) KIST Spin-off ETRI (KICT) (1977) Coop. Participate MPS (M. of Postal Service) Create TDTF (Telecom. Dev. TF) (1981) Form Participate Establish Commercialize Develop KT (KTA) (1981) TDX-1 (1984) Samsung E. TDX Dev. Team TDX Op. Team Dongyang E&T LG (Goldstar)

9 Characteristics Select and Focus Strategy (Strategic Selectivity) Not an Option but a Must Strategy Under the condition of scarce natural resources and limited financial resource Selected and Focused on Decadal Strategic Industries STI Policies focused on providing necessary industrial tech. Policy Coordination towards National Development Economic Policy + Industrial Policy + STI Policy STI Policies supported Economic & Industrial Dev. Strategies Meeting Industrial Technological Demands Facilitated and Encouraged Private R&D Investment & Innovation Strong Implementation and Close Inspection (Evaluation) Strong Drive for Implementation Close Inspection & Evaluation Feedback to Planning

10 Issues and Challenges Picking Winners? MOP necessarily picked winners (e.g., Chaebols, GRIs, etc.) Can we still pick the winners? Political Leadership < Ministerial Silos < Interest Groups Political leadership getting weaker Ministerial silos getting bigger Interest groups getting powerful Appropriate for Strengthening Basic Research? Korea is trying to strengthening its basic research capacity Then, is MOP appropriate for strengthening basic research? At least, some argues that Korea should abandon MOP Renew MOP in Korean Context? Korea has been strong at MOP Not necessarily contradict with Basic Research? How to reinterpret, modify and renew Korean MOP practices?

11 Thank You! For Further Comments & Questions; Yongsuk Jang

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