Korean STI Policy: Evolution and Direction
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1 Korean STI Policy: Evolution and Direction Presented at Joint Workshop between Brazilian Delegation and STEPI Seoul, Korea March 29, 2010 Yongsuk Jang, Ph.D. Research Fellow
2 Where is STEPI? President Prime Minister MEST Ministry of Education, Science and Technology KRCF Korea Research Council of Fundamental S&T (13 GRIs) NRCS The National Research Council for Economics, Humanities and Social Sciences STEPI Science and Technology Policy Institute MKE Ministry of Knowledge Economy KOCI Korea Research Council for Industrial S&T (13 GRIs)
3 Roles and functions Conducts research and analyses on the issues pertaining to science, technology and innovation Provides government agencies with policy ideas and suggestions for the promotion of innovation Identifies policy issues to effectively deal with future challenges Suggests strategic options in technology development for the government as well as industries Creates and disseminates S&T policy materials, data and information
4 Researches at STEPI 60% Grant Researches Basic Research Issue-focused Pilot Research Contract-outs Bottom-up+ Approach Contract Researches Agency-directed Customer-oriented Top-down Approach 40%
5 Republic of Korea 2 nd Poorest Country in th Largest Economy in 2009
6 Total R&D Investment Growth Total R&D Investment 3.37% (3 rd ) 0.25% 2.48% 12,810 31,290(7 th ) Total R&D Investment (Million $) Ratio of Total R&D to GDP
7 Public R&D Investment Growth Public R&D Investment Government s R&D Budget (Trillion KRW)
8 Trend of Public vs. Private R&D Investment 100% 90% 80% 70% 60% Private Share, % 50% 40% 30% Gov. Share, % 20% 10% 0%
9 Total Number of Researchers Growth Total Number of Researchers 300, ,438 2, Total Number of Researchers
10 Number of Full-Time Researchers per 1,000 Economically Active Population Growth No. of Full-Time Researchers per 1,000 Economically Active Population No. of Full-Time Researchers per 1,000 Economically Active Population
11 Major S&T Achievements Science & Technology Articles 4 (53 th ) 7,870 (18 th ) 35,569 (12 th ) 10 International Patents ,891 7,908 (4 th ) 6,295 (4 th ) Number of Articles (Ranking) No. of PCT Applications No. of US Granted Patents Science & Technology Competitiveness (IMD) 세계순위 14 th 12 th 21 th 17 th 14 th 10 th 7 th 24 th 8 th 2 th 6 th 6 th 3 th 5 th 13 th 14 th 14 th 17 th Science Competitiveness Technology Competitiveness
12 Estimated Evolution of National Competitive Development F A C TO R - DRIVEN IN V ES TM EN T - DRIVEN IN N O V ATIO N - DRIVEN W EALTH - DRIVEN S ingapore K orea Italy Japan Denmark S weden S witzerland Germany U n ited S tates United K ingdom? Source: Michael E. Porter (1990)
13 How Korea Has Evolved? FACTOR- DRIVEN INVESTMENT- DRIVEN INNOVATION- DRIVEN WEALTH- DRIVEN U.S. Japan Korea 1960s Korea 1970s Korea 1980s Korea 1990s Korea Current From From IMITATION To To INNOVATION
14 Major Institutional Developments and Policy Shifts Institutional Developments Government R&D Programs Knowledge-based Economy st 5-Year Economic Plan Korea Advanced Institute of Science (KAIS) Industrial Generic Technology Development Program (IGTDP) Financial Crisis Current Admin. MEST & MKE 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)
15 Industrial Shifts and S&T Policies 1990s 1970s 1980s 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
16 1960s Industrial Policies - Import-Substitution Industries (Textiles, Plywood, etc.) - Expand Export-oriented Light Industries (export subsidy, preferential financing) - Five-Year Economic Plans - From Agriculture to Labor-intensive Light Manufacturing Industries S&T Policies - 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)
17 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) S&T 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)
18 1980s Industrial Policies - Economic Slowdown / Trade Imbalance - Declining Competitiveness in Labor-intensive Industries - Economic Liberalization - Transform Industrial Structure to Advanced and Balanced Form - Expand Technologyintensive Industries - Encourage Human Resource Development and Improve Productivity of Industries - Promote SMEs S&T 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)
19 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) S&T Policies - From Imitation to Indigenous Innovation - Realign National R&D Projects - HAN Project (Long-term, Large-scale) - Strengthen Demand-oriented Technology Development System (industry-neutral & Tech.-oriented) - Internationalize R&D Systems and Information Networks - Construct S&T Infrastructure (e.g., STEPI, KAITEC, ETRI) - Basic Science Research at Universities
20 2000s Industrial 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) S&T Policies - 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
21 Future Directions of Korean STI Policy I Expand Public R&D Investment Increase Government s R&D Funding 50% from 11.1 trillion KRW in 2008 to 16.6 trillion KRW by 2012 Expand the Share of Basic Research in public R&D investment from 25.6% in 2008 to 35% by 2012 Encourage Private R&D Investment Quick Response to Industrial Needs (e.g., tax credit, job support, public procurement, etc.) Deregulations (e.g., labor market, legal system, etc.) Strengthening Firms Mid-& Long-term R&D capability (e.g., research collaboration among triple helix) Promote New Growth Engines (17 major tech in 3 areas) Green Technology Industry (e.g., new and renewable energies) Cutting-Edge Fusion Industry (e.g., ICT, Bio, Nano-based Fusion Tech.) High Tech. Service Industry (e.g., Healthcare, Education, etc.)
22 Future Directions of Korean STI Policy II Promote Green Growth National Strategy and the First Five-Year Plan for Green Growth Increase Government s R&D Funding on Green Technologies Select 27 Major Green Technologies to foster (e.g., forecasting tech., new and renewable energy tech., high-efficiency and low-pollution energy tech., etc.) Create Green Jobs Mega-Sciences Nuclear Energy (e.g., Export of Nuclear Power Plants, etc.) Space Exploration (e.g., Naro Space Satellite, etc.) High Quality Human Resources Gifted and Talented Education College and Graduate Education Post-Doctoral Researchers Star Scientists and Scholars
23 Future Directions of Korean STI Policy III Strengthen S&T Policy Governance NSTC as a central coordinating body S&T Policy Subcommittee R&D Budget Review and Coordinating Subcommittee Knowledge Diffusion Subcommittee Increase R&D Efficiency Creative and Transformative Research Allow R&D Failuure, if sincere Promote Technological Originality Cooperation among PRI-Univ.-Ind. (Triple Helix) Establish International Science Business Belt Sejong City as a Belt Core; C-& K-Belt Linking Science to Business International Basic Science Institute (IBSI)
24 Thank You! For Further Comments & Questions; Yongsuk Jang
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