Korean STI Strategy for National Development

Transcription

1 Korean STI Strategy for National Development Presented at Colombian Workshops July & August, 2015 Yongsuk Jang, Ph.D. Senior Research Fellow

2 Contents Korean STI Strategy Growth of STI Policy Governance: Adaptation and Adjustments Triple Helix: Interactions among Actors Epilogue

3 Contents Korean STI Strategy Growth of STI Policy Governance: Adaptation and Adjustments Triple Helix: Interactions among Actors Epilogue

4 Republic of Korea (South) A Small Land with Scarce Resource

5 Korea's Economic Development, nd Poorest Country in 1945 $28,180 (2014) 8 th Largest Economy in ODA Recipient ODA Donor $67 (1953) Source: The Bank of Korea : Per Capita GNP (current US$, 1975 base year) : Per Capita GNI (current US$, 2005 base year)

6 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 Value-added Industrial Diversification Industrial Convergence Light Industries Heavy Industries Assembly & Processing Industries IT Industries New Growth Engines Creative Economy Import Protection Export- Orient Import Tech. Tech. Capability Expand R&D Skilled HR Demandoriented Innovation Endogenous Tech. Creative R&D Capability Supply Side

8 Evolution of Korean STI Policies S&T Leadership Technology Catching-up Institutional Building st 5-Year Economic Plan Korea Advanced Institute of Science (KAIS) Industrial Generic Technology Development Program (IGTDP) Financial Crisis MSIP 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

9 Evolution of Korean STI Policies I S&T Leadership Technology Catching-up Institutional Building st 5-Year Economic Plan Korea Advanced Institute of Science (KAIS) Industrial Generic Technology Development Program (IGTDP) Financial Crisis MSIP 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

10 1960s Industrial Policies STI Policies - Import-Substitution Industries (Textiles, Plywood, etc.) - Expand Export-oriented Light Industries (export subsidy, preferential financing) - Five-Year Economic Plans - From Agriculture to Laborintensive Light Manufacturing Industries - Establish Scientific and Technological Infrastructure (e.g., KIST) - Initiate S&T Education (e.g., KAIS) - Promote Foreign Technology Imports - Strategically Adjust to the Need for Economic Dev. - Establishment of Ministry of S&T (MOST)

11 1970s Industrial Policies - Expand Heavy & Chemical Industries (e.g., machinery, shipbuilding, chemicals, marine science, electronics, electricity) - Shift Emphasis from Capital Imports to Technology Imports - Strengthen Export-oriented Industrial Competitiveness - Foster Chaebols (e.g., Samsung, Hyundai, LG) STI Policies - Expand Technical Training - Improve Institutional Mechanism for Adapting Imported Tech. (GRIs) - Invite eagerly Korean Scientists trained overseas - Promote Research Applicable to Industrial Needs - Promote Imports of Foreign Tech. (imitation, reverse engineering, imports of capital goods)

12 Evolution of Korean STI Policies II S&T Leadership Technology Catching-up Institutional Building st 5-Year Economic Plan Korea Advanced Institute of Science (KAIS) Industrial Generic Technology Development Program (IGTDP) Financial Crisis MSIP 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

13 1980s Industrial Policies - Economic Slowdown / Trade Imbalance - Declining Competitiveness in Labor-intensive Industries - Economic Liberalization - Transform Industrial Structure to Advanced and Balanced Form - Expand Technology-intensive Industries - Encourage Human Resource Development and Improve Productivity of Industries - Promote SMEs STI Policies - Reluctant to TT from Advanced Economies - Pressure on Strong IPR - Independent Innovation - Develop and Acquire Top-level Scientists and Engineers - Perform National R&D Projects Efficiently (e.g., NRP, IGTDP, AEECTP, ICRP) - Promote Industrial Technology Development - Promote Collaborative R&D (San-Hak-Yun)

14 1990s Industrial Policies - Promote Adjustment of Industrial Structure and Technical Innovation - From Imbalanced to Balanced Growth Strategy - Promote Efficient Use of Human and Other Resources - Improve Information Network - Information Tech. (e.g., Computer, Semiconductor) STI Policies - From Imitation to Indigenous Innovation - Realign National R&D Projects - HAN Project (Long-term, Largescale) - Strengthen Demand-oriented Technology Development System (industry-neutral & Tech.-oriented) - Internationalize R&D Systems and Information Networks - Construct S&T Infrastructure - Basic Research at Universities

15 Evolution of Korean STI Policies III S&T Leadership Technology Catching-up Institutional Building st 5-Year Economic Plan Korea Advanced Institute of Science (KAIS) Industrial Generic Technology Development Program (IGTDP) Financial Crisis MSIP 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

16 2000s Industrial Policies STI Policies - Searching Sustainable Growth based on Tech. Innovation - Select and Concentrate - Differentiated Strategies for Major Industries, Future Strategic Industries, and Manufacturing-related Service Industries - Regional Development - Entrepreneurships (Venture Capital, NASDAQ) - Globalization (FTAs with Chile, U.S., EU, China) - New Growth Engines (Bio, Nano, IT) - Develop Regional Innovation Clusters - Decentralization of R&D Authorities but Emphasis on Coordination - Long-term Vision for S&T Development (Vision 2025) - Five-Year S&T Principal Plan - Efficiency of Gov. R&D Investments (Evaluation Emphasis) - National Technology Road Map (NTRM) - Private Sector-led NIS

17 Seeking New Growth Engines Bio Tech. New Growth Engines Digital TV/Broadcasting Display Next Generation Semiconductor Mobile Telecommunication Intelligent Home Networking Digital Contents / SW Solutions Intelligent Robot New Automobile Next Generation Battery Bio-Medicine and Organs Information Tech. Nano Tech.

18 577 Initiative (2008)

19 Creative Economy (2013~) Creation of ecosystem that facilitates startups Break down the obstacles hindering startups and foray into the market, refurbish the intellectual property right system to ensure safe distribution of ideas and knowledge, and create the chance to take on the challenge even after a failure. Support and cultivation of venture and SMEs Provide financial support and tax relief to help venture and SMBs evolve into global companies, and ensure large companies and SMBs to share the benefits of economic growth. New industry & creation of market Create new products and services based on the convergence of knowledge and technology the creative assets with conventional industries, such as culture, health, agricultural and marine industries, and fully leverage S&T and IT to create future growth engines. Development of global creative talents Develop creative talents who have challenging and entrepreneurial spirit, provide active support to ensure that those talents fully unfold their capabilities abroad, and deploy the professional manpower in the global arena with open-mindedness. Expanding the capability of S&T and ICT Increase the investment to expand the ICT and S&T of Korea to an unmatched level in the world, and build the world s best internet and network environment to promote the exchange of idea and knowledge. Creation of the inclusive creative economic culture Create a social environment that allows the public to express their imagination and ideas without restriction, provide opportunities for creating new value by using the public information, and achieve innovation in the operation of government in order to lay the groundwork for the public and the government to work together.

20 Roles of STI Policy in Korean Development Period 1960s 1970s 1980s 1990s 2000s 2010~ Era Focused Industries Compet. Factor Demanding S&T HR Demanding Tech. S&T Policy Export- Oriented Light Industries Export-led Heavy Industries Economic Liberalization Assembly & Processing Industries Cheap Labor Skilled Labor Capital Investment Democrat. Advancement Global Leading ICT Technologies Skilled HR Technical HR Higher S&E High Calibre S&E Knowledge Intensive Industries S&T Innovation Creative S&E Plant Mgt. Facility M&O Mfg. Core Tech. Endogenous Tech. Turn-key Capital Import/ Tech. Learning Internalizing Imported Tech./ Reverse Eng. Modify Imported Tech./ Develop Domestic Tech. Advancing Tech. Catchup/ Large Gov. R&D Prog. Focus on endogenous tech./ Systemize S&T Prog. Knowl. Service/New Converging/ Green Ind. Advanced S&T Innovation Creative & Converging S&E Source Tech. Globalize S&T/ Focus on Convergence Paradigm Change Imitation Catching-Up Innovation Endogenous Innovation

21 Contents Korean STI Strategy Growth of STI Policy Governance: Adaptation and Adjustments Triple Helix: Interactions among Actors Epilogue

22 Trends of Total R&D Exp. and R&D/GDP in Korea (Billion KRW) Total R&D Target 5% 1,35 1,68 2,30 2, ,6 0,54 0,24 0,26 0,38 0, ,5 1,2 2,1 10,5 42,7 211, ,2 $ 59 Billion (4.15%) in ,47 2,40 2, , , , ,5 2,68 2, , ,3 3, ,7 3, ,4 3, ,1 3, ,5 3, ,8 4,36 4, ,9 4, , , ,00 (%) 4,00 GERD/GDP 3,00 2,00 1,00 0,00

23 Public R&D Investment Growth Public R&D Investment Government s R&D Budget (Trillion KRW)

24 Trends of Public vs. Private R&D Investment in Korea Public R&D: Promoter & Facilitator Public : Private = 21 : 79 (2013) 2013

25 Total Number of Researchers Growth Total Number of Researchers 138, , ,333 2, Total Number of Researchers

26 Korea in Global R&D (2013) Source: 2014 Global R&D Funding Forecast, Battelle (2013)

27 Major S&T Achievements Science & Technology Articles International Patents 4 (53 th ) ,870 (18 th ) (12 th ) ,848 1, ,548 (2013) Number of Articles (Ranking) No. of PCT Applications No. of US Granted Patents World Ranking 14 th 12 th 21 th 17 th Science & Technology Competitiveness (IMD) 14 th 10 th 7 th 24 th 8 th 17 th 2 th 6 th 6 th 13 th Science Competitiveness 5 th 14 th 3 th 14 th Technology Competitiveness 6 th 8 th

28 Contents Characteristics of Korean STI Strategy Growth of STI Policy Governance: Adaptation and Adjustments Triple Helix: Interactions among Actors Epilogue

29 Birth of MOST in 1967 For Institutional Building & Tech. Catching Up President Prime Minister EPB Economic Planning Board MTI Ministry of Trade and Industry Other Ministries STA S&T Administration World s First S&T Agency First Korean GRI (1966)

30 Upgrade of MOST in 1998 For Promoting Innovation NSTC President Prime Minister Introducing Research Councils & NSTC MOCIE Ministry of Commerce, Industry and Energy MOST Ministry of S&T MIC Ministry of Info. and Communication Others KRCF NRES NRHS KOCI GRIs GRIs GRIs GRIs

31 Promotion of MOST in 2004 For Coordination NSTC President Prime Minister Promoting MOST to Deputy Prime Ministry Introducing OSTI MOCIE Ministry of Commerce, Industry and Energy MOST Ministry of S&T MIC Ministry of Info. and Communication Others OSTI KRCF NRCS KOCI GRIs GRIs GRIs

32 Two Top System in 2008 For Efficiency NSTC President Prime Minister MEST = MOE + MOST MKE = MOCIE + MIC MEST Ministry of Education and S&T MOE + MOST MKE Ministry of Knowledge Economy MOCIE + MIC Others KRCF NRCS ISTK GRIs GRIs GRIs

33 Standing NSTC in 2011 For Effective Coordination President Prime Minister Standing NSTC as a Control Tower with STI Policy Coordination and R&D Budget Allocation Power MEST NSTC MKE Others KRCF NRCS ISTK 13 GRIs 26 Policy Inst. 14 GRIs

34 New Governance for Creative Economy (2013) For Driving Creative Economy President Prime Minister PACST NSTC MOSF MSIP MOTIE Others S&T ICT Economy Trade Industry NSTC Budget Energy * MOSF: Deputy Prime Minister and Ministry of Strategy and Finance * MSIP: Ministry of Science, ICT and Future Planning * MOTIE: Ministry of Trade, Industry and Energy

35 Contents Korean STI Strategy Growth of STI Policy Governance: Adaptation and Adjustments Triple Helix: Interactions among Actors Epilogue

36 Triple Helix for Innovation Government (GRIs) Government-sponsored Research Institutes (GRIs) Public Research Institutes (PRIs) Research for Public Purposes Applied Research Universities Supply S&Es Curiosity-driven Basic Research Firms Commercialization Produce Innovations Development Research

37 Evolution of Korean Triple Helix GRI-led / Univ.-supported Industrial Innovation! 2000 s 90 s 80 s 70 s Firms 60 s GRIs Univ.

38 Roles of GRIs Leading Player for Korean Innovation Independent non-government organizations with government s financial supports Operating under the GRI Laws and civil laws Conduct about Half of Public R&D Investments KIST, the First GRI, was established in 1966 with help of USAID 27 (13 under KRCF & 14 under ISTK) S&T GRIs (as of 2011) Role Shifting Absorbing & Internalizing imported foreign tech. (1970s) Modifying imported tech./developing domestic tech. (1980s) Advancing catching-up tech. (1990s) Focusing on Endogenous Tech. (2000s~) Major Function: Providing Needed Tech. to Industries Challenges As Private R&D Labs and University Researches Grow, Need to Redefine its Role

39 Evolution of Korean GRIs NIMS 2005 NFRI 1996 KRRI 1996 KIOM 1994 KITECH 1989 KBSI 1988 KRIBB 1985 WKIMCHI 2010 KFRI 1987 KIER 1977 KRICT 1976 KERI 1976 KIMS 2007 KARI 1989 KIMM 1976 ETRI 1976 KRISS 1975 KIT 1982 KASI 1974 KOPRI 1987 KORDI 1973 KIST 1966 KICT 1962 KISTI 1991 KAERI 1959 KIGAM 1948 STEPI 1987 NSRI?

40 KIST: The First Korean GRI Korea-US Summit in 1965 Between then Presidents, Park Chung Hee and Lindon B. Johnson Foundation of a research institute for Korea s Growth in industrial technology and applied science Under USAID Program Models < vs. > Bell Lab: Research for Basic Science Battelle: Industry-oriented Tech. Dev. for Catching-up Growth 1966: 50 FTE & 200 M.KRW 2010: 700 FTE & 250 B.KRW Principles Close to Industries Operational Autonomy Stable Funding Transparency

41 Roles of Universities Reservoir of High-Caliber S&E Human Resources Korea High Fever on Education (College Enrollment Rate: 87%) More than 400 Higher Education Institutes Holds about 70% of S&E Ph.D.s Excessive Teaching Orientation Conduct Only 10% of Gloss R&D Expenditure Enforcing its Research Function KAIST, the first S&T Research Univ., was established in 1971 Allocating More Public R&D Investment to Universities Promoting Basic Researches Various Programs such as BK21, WCU, WCI, etc. Challenges Shrinking S&E Enrollment Weak Univ.-Industry Partnership Promoting into the World Class Level

42 S&T-specialized Research-oriented Universities Education + Research Supply High-Caliber S&Es to GRIs & Industries Conduct Mid- & Long-term Researches Under Different Governance Under Ministry of S&T (MOST) Most Universities were under auspices of Ministry of Education (MOE) S&T-specialized Universities were under auspices of Ministry of S&T (MOST) Operational Autonomy Stable & Growing Funding Expansion POSTECH (Private Univ. sponsored by POSCO) GIST, DGIST, UNIST (Public Univ. funded by Government)

43 KAIST: The First Research-oriented Graduate School Korea Advanced Inst. of S&T Established in 1971 Under Special Law on KAIS With Government Funding Provided High-Caliber S&Es Evolution Staffed with Oversea-trained Korean S&Es Merged with KIST in 1981 Undergraduates in 1986 Split out from KIST and Moved to Daejeon in 1989 Current Faculty: 700+ (Int l: 100+) Student: 8,000+ (Int l: 300+) Functions Education & Research Theoretical & Applied Researches Mid- & Long-term R&D Incubate Entrepreneurs

44 Evolution of Korean Universities 400 No. of Higher Education UNIST GIST 1993 DGIST 2003/2010 POSTECH KAIST 1971 *S&T-Specialized Univ Source: MEST (2010)

45 A Typical 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)

46 Contents Korean STI Strategy Growth of STI Policy Governance: Adaptation and Adjustments Triple Helix: Interactions among Actors Epilogue

47 How Has Korea Evolved? FACTOR- DRIVEN INVESTMENT- DRIVEN INNOVATION- DRIVEN WEALTH- DRIVEN U.S. Japan UK? Korea 1960s Korea 1970s Korea 1980s Korea 1990s Korea Current From IMITATION To INNOVATION In Strategic Way

48 Innovation Strategies at Different Development Stages STI Leadership Institution Building Catching-Up

49 Policy Implications Triple Helix Major Players for Modern Innovation Each has its own designated Role Collaboration among Triple Helix is Essential For Development, Which Player should go First? Western Model (Balanced Strategy) All Players should be developed in Balance Based on Traditional Simple-Linear Innovation Model Basic R -> Applied R -> Development -> Innovation Assume Automatic Spillovers Korean Model (Unbalanced Strategy) Under very limited framework conditions University vs. GRIs Korea chose GRIs to take a lead for Catching-up Later, promote Research in University Essence is Education!

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