OECD workshop on measuring the link between public procurement, R&D and innovation. "Impacts of Korean innovative procurement policies"

Impacts of Korean innovative
procurement policies
2013. 12.
Dr. Woosung Lee
Research Fellow
Science and Technology Policy Institute
1

목 차
I.KEIT (2013) Performance Analysis Report
II. Report on the Korean Innovation Survey(2012)
III. Cases
2

목 차
I.KEIT (2013) Performance Analysis Report
III. Case
3

4
Case1: New Technology Purchasing Assurance
Overview
“In an effort to further commercialize new technologies, government agencies, public institutions including Defense Ministry, KEPCO (Korea Electric Power Corp.). KOGAS (Korea Gas Corporation), and Korea Railroad Corporation and private business commission SMEs to develop a new technology with the assurance that they will purchase the technological products. Under this program, the SMBA finances the technological development of SMEs, while public institutions purchase the products for a certain period of time.
Certification (NEP, NET etc.)
NTPA
R&D grants
Public/Private Procurement
Targeting 10%

5
Case1: New Technology Purchasing Assurance
Trends: New Technology Purchase Assurance Program
Data Source: The Small & Medium Business Administration
(Note: Total numbers indicate accumulated figures)
Subsidy (100million, KRW)
# of Purchasing Organizations
# of Firms
Supported
Total
Public Organizations
Large Firms
2002
9
1
1
0
13
2003
40
1
1
0
49
2004
40
8
8
0
40
2005
100
26
18
8
87
2006
160
45
25
20
154
2007
300
83
32
51
230
2008
400
127
36
91
254
2012
645

Purchasing Organizations
Data Source: Hong (2008), “Trend & Issues on SME Public Purchasing R&D Promotion”, KIET Industrial Economy Analysis
Participating Organizations (Purchasing Party)
Public
Organizations
(32)
National
Organization
National Police Agency, Defense Department, National Emergency Management Agency,
Defense Acquisition Program Administration, Korea Coast Guard, Korea Meteorological
Administration, Ministry of Maritime Affairs and Fisheries
Local
Government
Daejeon, Samcheok
Public
Organization
Korea Coal Corporation, Korea Gas Corporation, Korea Airports Corporation, Korea
South-East Power, Korea Southern Power, Korea Rural Corporation, Korea East·West Power,
Korea Western Power, Korea National Oil Corporation, Korea Hydro & Nuclear Power, Korea Electric Power Corporation, Korea Minting and Security Printing Corporation, Korea Midland Power., Korea District Heating Corp., KORAIL, Korea Rail Network Authority, Environmental
Management Corporation, Seoul National University of Technology, Korea Research Institute of Bioscience and Biotechnology, Korea Electrical Safety Corporation
Local Public Utility
Seoul Metro, Seoul Metropolitan Rapid Transit Corporation
Large Private Firms
(Total 51)
Keumho Tire, Daewoo Electronics, Daewoo Shipbuilding & Marine Engineering Co., Ltd., LG Dacom Corporation, Doosan Engine Co., Ltd, Doosaninfracore, Samsung Electro-mechanics Co., Ltd., Samsung Electronics, Samsung Heavy Industries, Samchully Co., Ltd., Korea
Delphi Automotive Systems Corporation, Hyosung Co., Ltd., KT, LG International Corp., LG
Electronics, POSCO, SKC, STX Engine, STX Group, STX Shipbuiliding, Dae Dong Industrial,
Dae Won Kang Up Co., Ltd., Dongwon Systems, Meister, Magna Chip Semiconductors,
Samsung Fine Chemicals, Samsung Corning, Samsung Techwin, Saehan, Semes, Sebang,
Secron, Shinheung, Amore-Pacific, Asiana IDT, IDS, Inkel, GMB Korea, Cuckoo Electronics,
Clark Material Handling Asia, Hynix Semiconductors, Alcatel-Lucent Korea, Fuji Film Korea,
Hanwha L&C, DK UIL, KT Networks, KTFT, LG Life Science, LG Innotek, LG Philips LCD,
S&T Daewoo

Performance analysis scheme
7
Division
Indicators of analysis
Definition
Input
R & D manpower
Research manpower put into and related to technology development to perform tasks
Employee
Company's total number of employees for performing tasks
Building the basis for technology developments
Retention rate for research facilities and equipment as the default of infrastructure for research and development
Implementation
Planning
Improvement of ability for the research and development planning due to task performance
Administration
Systematic management for research achievements and the empowerment of intellectual property management due to task performance
Network
The degree of contribution to Network Construction for joint research with other agencies due to task performance
Achievements creation
Impact for the creation of research and development achievements
Exchange activities
Information of research and development and the degree of human resources exchange activities
Promoting a joint research
Intentions of a promotion for the future collaborative research
Quantitative performance
Academic ability
Presentations and papers published on the national and international professional journals related to the technology development for performing tasks
Patent
The national and international patent application and registration related to the technology development for performing tasks
Other Intellectual Property Rights
Application and registration of domestic and international utility model and design other than patents
Technical performance
Technology gap
The difference between the world best technology and the technology for task performance
Changes in technology level
The difference between the world best level of technology and the level of technology developed through performing projects
Degree of the technology independence
The degree of relative independence of technology developed through performing projects
Economic performance
Sales amount
Total sales due to technology or product developed through performing projects
Export amount
Total exports due to technology or product developed through performing projects
Amount of import substitution
The expected total amount of import substitution in the case of substitution with products developed through performing projects for existing import goods
Reduce ratio of the production cost
Reduction ratio of the production cost due to technology development through performing projects
Additional cost required to commercialization
Additional costs putted into for realizing a commercialization and the public applying
Operating Profit
Operating Profit of the product developed through performing projects
Number of new employees
Number of new employment induced to produce product developed through performing projects
Contribution/ ramifications
Technical contributions
The contribution of technology developed through performing projects
Contribution to total sales
The contribution to the total sales of the technology or product developed through performing projects
Contribution to creation of new jobs
The contribution of new employment due to technology or product developed through performing projects
Ability improvement of information gathering
Improvement of ability for information gathering due to performing projects
Improvements of technology
Improvement of technology due to performing projects
Product improvement
The effect of product improvement due to performing projects
Process Improvement
The effect of process improvement due to performing projects
Environment for research and development
Improvement and enhancement of the environment for research and development due to performing projects
research manpower
The ability improvement of research manpower due to performing projects
Company Image
Improvement and enhancement of the company's public image and awareness due to performing projects
<Table> the configuration of analysis indicators

Target populations for analysis
8
<Table> distribution of population and respondents
Category
# of population
# of respondent surveyed
response rate
successful project
failed project
total
successful project
failed project
total
successful project
failed project
total
All
395
33
428
283
15
298
71.6
45.5
69.6
Enterprise
public
139
11
150
96
6
102
69.1
54.5
68.0
private
229
20
249
165
8
173
72.1
40.0
69.5
overseas
27
2
29
22
1
23
81.5
50.0
79.3
Support year
2007
149
14
163
105
5
110
70.5
35.7
67.5
2008
148
12
160
98
8
106
66.2
66.7
66.3
2009
98
7
105
80
2
82
81.6
28.6
78.1
Technical field
Mechine·material
145
13
158
106
7
113
73.1
53.8
71.5
BioㆍHealth
15
1
16
12
1
13
80.0
100.0
81.3
Electricㆍelectronic
130
11
141
88
4
92
67.7
36.4
65.2
Information and Communications
62
7
69
40
2
42
64.5
28.6
60.9
Information service
9
0
9
9
0
9
100.0
-
100.0
Chemistry
34
1
35
28
1
29
82.4
100.0
82.9
(Unit: number, %)

9
<Table> Technical steps
category
Technical development
Introduction of technology
Technical growth
Technology maturity
Technical decline
n/a
Total
total project
# of project
21
68
134
59
9
7
298
Ratio (%)
7.1
22.8
45.0
19.8
3.0
2.4
successful project
# of project
14
64
131
59
8
7
283
Ratio (%)
5.0
22.6
46.3
20.9
2.8
2.5
failed project
# of project
7
4
3
0
1
0
15
Ratio (%)
46.7
26.7
20.0
0.0
6.7
0.0
(Unit: number, %)
Technical steps

10
<Table> Commercialization step
(Unit: number, %)
category
failed commercialization
progress of a commercialization
end of a commercialization
total
complete pro-type of production
prototype production
purchase planning
closing a delivery contract
entry commercial production line
on sale
sale suspension
total project
# of project
42
19
35
30
23
14
122
13
298
ratio(%)
14.1
6.4
11.7
10.1
7.7
4.7
40.9
4.4
successful project
# of project
33
18
33
29
23
14
121
12
283
ratio(%)
11.7
6.4
11.7
10.3
8.1
5.0
42.8
4.2
failed project
# of project
9
1
2
1
0
0
1
1
15
ratio(%)
60.0
6.7
13.3
6.7
0.0
0.0
6.7
6.7
<Table> definition of commercialization step
commercialization step
definition
failed commercialization
stage 0 : give up commercialization due to internal and external factors
progress of commercialization
stage 1 : complete pro-type of production
stage 2: produce prototype production after a pilot
stage 3: purchase planning with purchase organization
stage 4: close a delivery contract with purchase organization
stage 5: entry commercial production line
successful commercialization
stage 6: continues to sell the product or process in the current
stage 7: while selling the product or process is now aborted
Commercialization step

Increase of research development planning capability
Systematization of research performance management
Increase of IP management capacity
Contribution on cooperative construction with other agencies
Total Projects
4.05
3.83
3.64
3.41
Projects succeeded
4.06
3.83
3.65
3.40
Projects failed
3.87
3.80
3.47
3.80
<Table> Degree of increases on Research project managing ability of new product development project
with purchasing condition
(Unit: point)
Analysis of Program Performance
Degree of effect on creation of research development performance
Degree of research development information exchange activities
Degree of research development manpower exchange activities
Inclination to promote future joint research
Total Projects
3.44
3.35
3.25
3.48
Projects succeeded
3.43
3.35
3.25
3.48
Projects failed
3.80
-
-
-
<Table> Effects of joint research project on new product development project with purchasing condition
(Unit: point)
Performance of Technology development

2007
2008
2009
Total
# of projects generated
# of articles generated
# of article per 100 million won(government support)
Total
2
2
4
8
8
1.00
0.43
Project Field
Public
0
1
0
1
1
1.00
0.59
Private
2
1
4
7
7
1.00
0.41
Foreign
0
0
0
0
0
-
-
Phase of Commercialization
Success
0
0
1
1
1
1.00
0.59
Progress
1
2
3
6
6
1.00
0.41
Failure
1
0
0
1
1
1.00
0.42
Technology Field
Machinery·Material
0
0
3
3
3
1.00
0.40
BioㆍHealth
2
0
0
2
2
1.00
0.41
ElectricityㆍElectronics
0
0
0
0
0
-
-
Information& Communications
0
0
0
0
0
-
-
Knowledge service
0
1
0
1
1
1.00
0.59
Chemistry
0
1
1
2
2
1.00
0.43
Technology base
0
0
0
0
0
-
-
<Table> Number of articles of new product development project with purchasing condition
(Unit: number)
(Unit: number)
Quantitative Performance

(Unit: number)
2007
2008
2009
Total
# of projects generated
# of articles generated
# of article per 100 million won
(government support)
Patent
Application
1
10
13
24
15
1.60
0.50
Registration
1
3
3
7
7
1.00
0.40
Utility model
Application
0
0
0
0
0
-
-
Registration
0
0
3
3
1
3.00
1.45
Design
Application
0
0
5
5
1
5.00
1.23
Registration
0
0
1
1
1
1.00
0.48
Total
2
13
25
40
25
1.60
0.60
<Table> Performance of intellectual property right of new product development project with purchasing condition
(Unit: number)
Quantitative Performance

Number of projects
Before the projects
After the projects
Improvement of technological gap
Total
283
4.27
2.73
1.54
2007
105
4.39
2.46
1.93
2008
98
4.26
3.15
1.11
2009
80
4.14
2.58
1.56
Commercialization-Success
133
4.70
2.83
1.87
Commercialization-Progress
117
4.00
2.80
1.20
Commercialization-Failure
33
3.52
2.09
1.42
Public
96
4.97
3.02
1.95
Private
165
3.87
2.58
1.28
Foreign
22
4.27
2.59
1.68
Machinery·Material
106
4.64
2.44
2.20
BioㆍHealth
12
2.83
2.50
0.33
88
4.17
2.59
1.58
40
3.28
2.85
0.43
Knowledge service
9
5.44
2.78
2.66
Chemistry
28
4.86
4.18
0.68
<Table> Performance of intellectual property right of new product development project
with purchasing condition
(Unit: number)
Technical Performance

Before the projects
After the projects
Degree of Increase
All
60.7
86.9
26.2
2007
57.8
87.0
29.2
2008
61.2
86.1
24.9
2009
63.8
87.8
24.0
61.5
88.7
27.2
58.8
85.9
27.1
64.3
83.2
18.9
Public
60.2
87.9
27.7
Private
60.5
86.3
25.8
Foreign
64.4
87.1
22.7
Machinery·Material
59.4
88.1
28.7
BioㆍHealth
71.8
88.0
16.2
59.5
87.3
27.8
63.3
84.5
21.2
Knowledge service
58.8
81.6
22.8
Chemistry
61.4
85.9
24.5
<Table> Improvement of technology level of new product development project with purchasing condition
(Unit: %)

Before the projects
After the projects
Degree of Increase
Total
64.1
87.4
23.3
2007
61.5
87.4
25.9
2008
60.2
86.3
26.1
2009
62.7
88.9
26.2
61.5
88.8
27.3
60.5
87.0
26.5
64.0
83.1
19.1
Public
62.5
88.6
26.1
Private
60.1
86.4
26.3
Foreign
66.4
90.0
23.6
Machinery·Material
58.4
87.8
29.4
BioㆍHealth
67.6
93.0
25.4
63.3
87.4
24.1
61.6
85.6
24.0
Knowledge service
67.2
87.2
20.0
Chemistry
61.9
86.4
24.5
<Table> change of technical self-reliance of new product development project with purchasing condition
(Unit: %)

<Figure> Comparison of sales
(Unit: number, million won)
(a) Number of projects (b) sales per projects (c) sales per 100 million won (government support)
# of projects
Avg. of Sales
Total Sales of projects
Total government support
Sales per 100 million won
Total projects
283
1,263.12
357,462.96
55,796.00
640.66
Projects generated
144
2,482.38
357,462.72
28,852.00
1,238.95
<Table> Sales
Economic Performance

<Figure> Comparison of export amount
(a)Number of projects (b) Export amount per projects (c) Export amount per 100 million won (government support)
# of projects
Avg. of export amount per project
Total export amount
Export amount per 100 million won(government support)
Total projects
283
181.27
51,300.00
55,796.00
91.94
Projects generated
43
1,193.02
51,299.86
8,605.00
596.16
<Table> Export amount

<Figure> Comparison of import substitution amount
(a) Number of projects (b) Import substitution amount per projects (c) Import substitution amount per 100million won
# of projects
Avg. of import substitution amount per project
Total import substitution amount
Import substitution amount per 100million won(government support)
Total projects
283
585.26
165,629.00
55,796.00
296.85
Projects generated
56
2,957.66
165,628.96
10,971.00
1,509.70
<Table> Import Substitution amount

<Figure> Comparison on percentage of production cost saving of developing product
(Unit: number, %)
(a)Number of projects (b) Percentage of production cost savings per project (c) Percentage of production cost saving per 100million won government contributions
category
# of projects
Average
(%)
Total sum of Percentage of production cost saving of the pertinent project (%)
Total sum of the contributions
(million won)
Percentage of production cost saving per 100million won government contributions (%)
Total projects
283
5.56
1,574.00
55,796.00
2.82
Pertinent projects
90
17.49
1,574.00
16,630.00
9.46
<Table> percentage of production cost saving
(Unit: number, million won, %)

<Figure> Comparison on additional costs spending on commercialization
(a) Number of projects (b) Additional costs on commercialization per project (c) Additional costs per 100million won contributions
category
Number of projects
Average additional cost
Total sum of additional cost spending on commercialization
of the pertinent project
(million won)
Additional cost per 100million won government contributions
Total projects
283
63.71
18,029.00
55,796.00
32.31
Pertinent projects
99
182.11
18,029.00
19,940.00
90.42
<Table> Additional costs spending on commercialization
Commercialization result

<Figure> Comparison on operating profit
(a) Number of projects (b) Operating profit per project (c) Operating profit per 100million won government contributions
category
# of projects
Average operating profit
Total sum of operating profit of the pertinent project
(million won)
Operating profit per 100million won government contributions
Total projects
2,373
65.79
156,114.00
359,928.55
43.37
Pertinent projects
880
177.40
156,114.00
129,655.00
120.41
<Table> Operating profit

<Figure> Comparison on new employment
(Unit: number, person)
(a) Number of projects (b) New employment (c) New employment per 100million won government contributions
<Table> Operating profit
(Unit: number, mission won person)
category
Number of projects
Average new employment
Total number of employees of the pertinent project
(million won)
Employment per 100million won government contributions
Total projects
283
0.80
226
55,796.00
0.41
Pertinent projects
92
2.46
226
18,998.00
1.19

<Figure> Comparison for the contribution
<Figure> Ramifications
<Figure> Research and Development Environment
<Figure> Research manpower and images of purchase- conditional new product development projects
Contribution and ramifications

<Figure> The factors of a participation in purchase-conditional projects for new product development
<Figure> The factors of a re-participation in purchase-conditional projects for new product development
Diagnosis

<Figure> The factors carried out successfully on purchase-conditional projects for new product development
<Figure> The difficulties factors of purchase-conditional projects for new product development
Diagnosis

<Figure> The difficulties on the production side of purchase-conditional projects for new product development
<Figure> The difficulties on the selling side of purchase-conditional projects for new product development
Diagnosis

<Table> Variables to analyze influencing factors upon the sales generated
Name of Variables
Attribute or Unit
Dependent Variables
Whether the sales are generated or not
0: yes, 1 : no
Total amount of sales generated
1,000,000 KRW
Independent Variables
Inputs
Number of researchers in the R&D project
Number
Number of doctors in the R&D project
Number
Number of masters in the R&D project
Number
Number of bachelors in the R&D project
Number
Number of other personnel in the R&D project
Number
Research facilities and equipment retention rate before the R&D project
Five point scale
Research facilities and equipment retention rate after the R&D project
Five point scale
Spending in the R&D in 2011
1,000,000 KRW
Academic achievements
(theses and intellectual property rights)
Number of foreign theses
Number
Number of local thesis
Number
Number of registered patent application
Number
Number of registered utility model application
Number
Number of registered design application
Number
Technological achievements
Years of technology gap before the R&D project
Number
Narrowing years of technology gap after the R&D project
Number
Current technology gap
Five point scale
Change in technology gap
Five point scale
Technology independence before the R&D project
Five point scale
Technology independence after the R&D project
Five point scale
Whether the technology is eco-friendly or not
0: no, 1: yes
Economic achievements
Amount of the export of developed products in 2011
1,000,000 KRW
Amount of the sales of products which substituted import in 2011
1,000,000 KRW
Percentage of reduction in product costs in 2011
%
Additional expense for commercialization in 2011
1,000,000 KRW
Number of newly employed personnel for the R&D project in 2011
Number
Control Variables
Technological sectors
Machinery and materials, bio technology and medicine, electronics and electrics, information and communications, chemicals
The year when support was made
2007, 2008, and 2009
Empirical Analyses : logistic Regression
Introduction to the Analyses

<Table> Variables which influence the successful performance of innovative firms
Name of Variables
Attribute or Unit
Dependent Variables
Whether the performance of innovative firms is successful or not
0: not successful or not yet delivered
1: successful
Independent Variables
Ability to manage the R&D
Improvement in the ability to design the R&D
Five point scale
Systematic management of R&D achievements
Five point scale
Improvement in the capacity to manage intellectual property rights
Five point scale
Contribution to the establishment of the shared network with other organizations
Five point scale
Level of contribution
Level of technological contribution to the R&D project
Five point scale
Level of contribution to the total sales
Five point scale
Level of contribution to the creation of jobs
Five point scale
Ripple effects
Technological improvement
Improvement in the ability to collect the information about advanced technologies and market trends
Five point scale
Securing core technologies
Five point scale
Enhancement of the ability to improve existing products
Five point scale
Enhancement of the ability to develop new products
Five point scale
Enhancement of the ability to improve existing manufacturing processes
Five point scale
Enhancement of the ability to improve new manufacturing processes
Five point scale
Shortening the period to develop technologies
Five point scale
Research environment and its image
Improving research atmosphere
Five point scale
Increase in the investment in the R&D
Five point scale
Expansion of the group for the R&D
Five point scale
Equipment of facilities for the R&D
Five point scale
Improvement of the status of R&D personnel
Five point scale
Increase in the number of R&D personnel
Five point scale
Enhancement of the capacity for the R&D
Five point scale
Improvement in the image and awareness of the public
Five point scale
Introduction to the Analyses

<Table> Relationship between the likelihood of the generation of the sales through the R&D project and inputs
Variables
Regression coefficient
Standard error
Chi-squared value
P-value
Standardized regression coefficient
Intercept
0.240
0.613
0.15
0.70
Total number of researchers in the R&D project
-0.013
0.010
1.75
0.19
-0.12
-0.189
0.137
1.90
0.17
-0.12
0.143
0.093
2.37
0.12
0.14
-0.031
0.040
0.60
0.44
-0.06
0.184
0.083
4.95
0.03
0.23
-0.003
0.149
0.00
0.98
0.00
0.171
0.132
1.69
0.19
0.10
0.000
0.000
0.24
0.62
0.04
Result of the Overall Analyses

<Table> Relationship between the sales generated through the R&D project and inputs
Variables
Standard error
Chi-squared value
P-value
Intercept
2400.964
5002.968
0.48
0.63
0.00
Total number of researchers in the R&D project
255.580
119.952
2.13
0.04
0.26
192.967
1154.424
0.17
0.87
0.02
-832.656
714.799
-1.16
0.25
-0.13
-585.343
323.524
-1.81
0.07
-0.19
434.119
452.736
0.96
0.34
0.09
1334.373
1234.934
1.08
0.28
0.11
392.033
1159.579
0.34
0.74
0.03
-1.145
1.456
-0.79
0.43
-0.08
<Table> Relationship between the likelihood of the generation of the sales through the R&D project and academic achievements (theses and intellectual property rights)
Variables
Standard error
Chi-squared value
P-value
Intercept
0.8944
0.4737
3.5655
0.059
-15.212
1368.200
0.00
0.99
-0.69
-1.264
1.253
1.02
0.31
-0.08
0.075
0.296
0.06
0.80
0.02
-5.237
667.600
0.00
0.99
-0.50
0.000
.
.
.
.

<Table> Relationship between the sales generated through the R&D project and academic achievements
(theses and intellectual property rights)
Variables
Standard error
Chi-squared value
P-value
Intercept
4584.17494
3740.79434
1.23
0.2226
0
0.000
.
.
.
.
417.114
13432.000
0.03
0.98
0.00
171.094
1840.626
0.09
0.93
0.01
0.000
.
.
.
.
0.000
.
.
.
.
Variables
Standard error
Chi-squared value
P-value
Intercept
-1.1927
0.9398
1.6108
0.2044
0.011
0.051
0.05
0.83
0.02
-0.482
0.251
3.70
0.05
-0.21
Current technology gap in years
-0.013
0.045
0.08
0.77
-0.03
Current technology level
0.659
0.307
4.63
0.03
0.23
0.118
0.243
0.24
0.63
0.05
0.159
0.299
0.28
0.59
0.06
0.169
0.308
0.30
0.58
0.04
<Table> Relationship between the likelihood of the generation of the sales through the R&D project and technological achievements

<Table> Relationship between the sales generated through the R&D project and technological achievements
Variables
Standard error
Chi-squared value
P-value
Intercept
9561.882
8255.291
1.16
0.25
0.00
-190.884
450.674
-0.42
0.67
-0.05
2693.892
2331.697
1.16
0.25
0.16
Current technology gap in years
25.073
388.244
0.06
0.95
0.01
Current technology level
-1840.963
2620.563
-0.70
0.48
-0.08
1263.323
2021.160
0.63
0.53
0.08
-1930.531
2618.960
-0.74
0.46
-0.09
-391.607
2536.430
-0.15
0.88
-0.01
<Table> Relationship between the likelihood of the generation of the sales through the R&D project and economic achievements
Variables
Standard error
Chi-squared value
P-value
Intercept
-0.00919
0.5215
0.0003
0.9859
0.003
0.001
6.13
0.01
1.19
0.006
0.003
4.69
0.03
11.19
0.028
0.013
4.81
0.03
0.22
0.001
0.001
0.62
0.43
0.12
0.050
0.081
0.39
0.53
0.06

<Table> Relationship between the sales generated through the R&D project and economic achievements
Variables
Standard error
Chi-squared value
P-value
Intercept
4901.988
3743.670
1.31
0.19
0.00
0.770
1.113
0.69
0.49
0.07
0.213
0.249
0.86
0.39
0.08
-15.207
77.026
-0.20
0.84
-0.02
-2.101
4.532
-0.46
0.64
-0.04
-220.512
560.131
-0.39
0.69
-0.04

목 차
I.KIAT(2013) Performance Analysis Report
III. Case
35

<Figure> state of use government support system
(Unit: %)
Report on the Korean Innovation Survey(2012)
Manufacturing sector
Utilization status of government support system

Tax exemption on technology development
Technology development/Commercialization support
Participation in governmental R&D project
Governmental technical support and guidance
Providing technical information
Technical manpower and educational research support
Gov./public sector purchasing
Marketing support
Total
5.4
13.9
5.5
3.9
3.5
3.1
1.9
4.1
10. Food
2.9
10.1
3.6
3.3
1.7
2.7
0.6
4.5
11. Beverage
6.4
12.7
6.4
6.4
6.4
0.0
0.0
0.0
13. Textile
4.3
9.5
5.4
5.9
4.9
2.5
1.8
2.0
14.Clothes
1.0
2.2
2.5
0.6
1.9
1.6
1.2
1.6
15.Leather
0.0
3.2
3.2
3.2
0.0
0.0
0.0
0.0
16. Lumber
8.0
9.5
3.2
6.3
6.3
3.2
3.2
9.5
17. Wood pulp
3.8
6.2
0.0
0.9
0.9
0.6
0.6
1.5
18. Printing
0.0
0.0
0.0
0.0
0.0
1.7
0.0
0.0
19.Cokes
9.0
0.0
0.0
0.0
0.0
0.0
0.0
9.0
20.Chemical
12.9
19.8
8.4
4.5
3.9
4.6
3.9
7.0
21.Medicine
27.0
40.4
26.3
23.8
5.2
9.7
0.0
23.4
22.Rubber product
3.3
6.3
3.0
2.0
2.6
1.2
0.6
1.2
23. Non-metal
3.1
12.3
2.9
2.9
0.9
2.0
6.2
2.0
24. Primary metal
1.8
8.8
1.7
0.6
3.4
1.6
0.3
0.3
25.Metal processing
3.3.
15.8
2.1
3.3
2.8
1.4
1.3
2.3
26.Electronic
6.6
14.8
10.8
4.5
5.3
3.7
0.8
3.2
27.Medical
16.5
19.1
10.1
7.1
3.4
5.8
4.6
12.4
28.Electrical equipment
6.6
21.1
8.7
3.9
3.4
3.5
2.3
6.3
29.Other machine
7.5
19.6
8.5
5.6
5.3
5.3
3.2
6.7
30.Wheels
4.5
19.0
5.9
3.4
3.1
2.6
0.2
2.3
31.Other transportation
4.1
13.4
10.9
6.8
7.6
7.8
4.1
9.0
32.Furniture
5.4
11.8
3.1
2.4
2.4
3.4
4.7
7.8
33.Other products
3.4
10.8
4.3
4.4
4.4
6.4
0.0
3.2
<Table> utilization status of government support system: type of business
(Unit: %)

<Table> utilization status of government support system: number of employees and legal forms of business
Category
Technology development/ Commercialization support
Participation in
Gov. R&D project
Gov. technical assistance and guidance
Marketing support
Total
5.4
13.9
5.5
3.9
3.5
3.1
1.9
4.1
Number of workers
10~49
4.7
13.4
4.3
3.4
3
2.7
1.8
3.9
50~99
7.4
15.1
9.1
5.6
4.9
3.9
2.6
3.8
100~299
10.6
17.3
14.7
7.9
7.5
5.7
2.1
5.8
300~499
18.9
22.7
24.4
5.4
6.3
9
4.1
17.1
Above 500
21.3
31.2
22.5
8.2
10.7
10.1
5
10.3
Legal forms of business
Large company
20.9
27.5
21.9
7.5
9.8
10.4
5.4
14.8
Medium company
9.9
17.2
10
6.3
5.4
5.2
2.5
5.4
Small company
4
12.8
4.1
3.2
2.9
2.4
1.7
3.6
(Unit: %)

The Importance of Government support system
Participation in governmental R&D project
Governmental technical support and guidance
Marketing support
Total
44.4
51.2
44.2
33.5
22.7
30.9
32.3
43.1
10. Food
73.4
47.4
30.6
8.0
7.7
23.0
100.0
32.7
11. Beverage
0.0
50.0
0.0
0.0
0.0
-
-
-
13. Textile
46.5
46.9
45.6
41.8
26.8
26.8
36.7
66.7
14.Clothes
0.0
72.1
25.0
0.0
33.3
61.3
50.0
61.3
15.Leather
-
400.0
100.0
100.0
-
-
-
16. Lumber
50.0
33.3
0.0
50.0
50.0
0.0
0.0
66.7
17. Wood pulp
49.5
24.6
-
0.0
0.0
100.0
0.0
0.0
18. Printing
-
-
-
-
-
0.0
-
-
19.Cokes
0.0
-
-
-
-
-
-
0.0
20.Chemical
44.1
61.2
71.0
86.4
16.6
42.7
16.6
38.7
21.Medicine
53.8
65.0
47.7
76.3
7.7
79.0
-
79.3
22.Rubber product
30.3
44.9
32.6
0.0
27.1
33.3
50.0
25.0
23. Non-metal
58.1
56.4
35.1
31.6
27.8
100.0
68.0
80.0
24. Primary metal
52.9
42.3
0.0
0.0
22.1
58.1
0.0
0.0
25.Metal processing
33.7
40.5
43.1
42.7
16.9
21.7
0.0
37.1
26.Electronic
51.3
48.6
50.6
15.8
19.8
38.4
29.5
45.7
27.Medical
39.9
50.6
37.1
47.5
75.0
35.4
44.7
36.8
28.Electrical equipment
35.7
51.0
42.3
19.4
0.0
13.5
41.4
39.6
29.Other machine
44.6
62.1
46.0
31.8
16.5
25.3
9.8
48.0
30.Wheels
42.7
43.3
35.6
17.3
60.4
16.3
0.0
25.8
31.Other transportation
45.2
83.2
71.8
27.4
35.2
23.7
90.4
24.9
32.Furniture
86.5
20.0
23.8
0.0
0.0
0.0
50.0
60.4
33.Other products
65.9
70.2
0.0
26.3
0.0
50.0
-
0.0
<Table> the importance of government support system(‘high’) : by business
(Unit: %)

<Table> the importance of government support system(‘high’) : number of employees and legal forms of business
(Unit: %)
Category
Technology development/
Commercialization support
Participation in Gov. R&D project
Marketing support
Total
44.4
51.2
44.2
33.5
22.7
30.9
32.3
43.1
Number of workers
10~49
43.9
41.6
43.9
32
24
31.9
35.5
44.2
50~99
45.9
48.4
41.1
43.6
9.5
22.4
16.7
34.9
100~299
47.8
48.1
47.1
28.7
29.8
32.1
28.4
45.7
300~499
33.7
52
58.1
46.2
15.5
38.6
15.7
32.9
Above 500
45.8
55
39.6
45.1
33.9
36.5
22.6
39.2
Large company
43.5
56.3
59.1
34.4
34.1
30.4
28.3
34.2
Medium company
50.3
48.2
43.2
29.9
17.4
30.2
23.3
38.9
Small company
40.4
41
43.7
35.5
24.9
31.4
35.9
45.3

<Figure> state of use government support system
(Unit: %)
Service Sector

<Table> utilization status of government support system: number of employees and legal forms of business
Category
Technology development/ Commercialization support
Participation in
Gov. R&D project
Marketing support
Total
5.4
13.9
5.5
3.9
3.5
3.1
1.9
4.1
Number of workers
10~49
4.7
13.4
4.3
3.4
3
2.7
1.8
3.9
50~99
7.4
15.1
9.1
5.6
4.9
3.9
2.6
3.8
100~299
10.6
17.3
14.7
7.9
7.5
5.7
2.1
5.8
300~499
18.9
22.7
24.4
5.4
6.3
9
4.1
17.1
Above 500
21.3
31.2
22.5
8.2
10.7
10.1
5
10.3
Large company
20.9
27.5
21.9
7.5
9.8
10.4
5.4
14.8
Medium company
9.9
17.2
10
6.3
5.4
5.2
2.5
5.4
Small company
4
12.8
4.1
3.2
2.9
2.4
1.7
3.6
(Unit: %)
Service
Sector

<Table> the use degree of the government support system: the size and legal forms of business
(Unit: %)
Service
Sector
Category
Technology development/
Commercialization support
Participation in
Gov. R&D project
Marketing support
Total
3.2
9.0
3.4
2.4
2.8
3.9
1.8
2.5
Number of workers
10~49
2.7
8.7
3.3
2.2
2.9
3.9
1.6
2.5
50~99
4.2
7.5
2.7
2.8
3.3
3.6
1.9
1.9
100~299
4.1
10.2
3.7
2.3
1.5
3.5
1.7
2.7
300~499
5.7
13.8
5.4
2.6
3.1
4.7
3.2
2.3
Above 500
4.2
10.4
7.9
4.3
4.9
6.4
4.2
5.1
Large company
5.7
12.1
10.4
4.5
4.7
5.6
5.1
5.2
Medium company
5.5
10.0
5.6
3.3
2.9
5.6
2.6
3.2
Small company
2.5
8.7
2.7
2.1
2.7
3.3
1.5
2.1

<Table> The importance of government support system (‘high’) : type of business
(Unit: %)
Service
Sector
Category
Participation in
Gov. R&D project
Marketing support
Total
34.7
43.5
43.3
19.5
21.3
32.3
27.7
37.5
Wholesale/Retail
36.2
24.1
57.1
27.2
27.4
33.0
42.3
48.6
Transportation
45.4
54.7
4.9
10.9
12.1
3.5
18.5
0.0
Lodging/Food
50.4
50.0
0.0
0.0
0.0
0.0
43.0
0.0
Publishing/Broadcasting
42.5
52.5
46.4
13.3
3.2
32.4
11.0
32.2
Financial/Insurance
12.9
23.6
14.1
16.6
16.9
37.3
19.4
23.6
Real estate/Leasing service
100.0
29.8
100.0
33.6
100.0
42.3
38.5
45.0
Science/technology
29.1
44.9
41.7
33.1
38.5
20.7
22.6
12.6
Facilities management
0.0
58.1
50.0
18.3
26.3
17.5
0.0
0.0
Education
40.0
26.5
50.7
17.2
11.7
59.4
35.0
49.8
Health/Welfare
19.3
46.7
24.6
3.9
18.9
23.1
5.2
30.5
Art/Leisure
0.0
100.0
65.2
-
0.0
69.9
100.0
100.0
Repair/Private
-
58.0
100.0
100.0
66.7
81.6
-
100.0

<Table> the importance of government support system (‘high’): the size and legal forms of business
(Unit: %)
Service
Sector
Category
Participation in
Gov. R&D project
Marketing support
Total
34.7
43.5
43.3
19.5
21.3
32.3
27.7
37.5
Number of workers
10~49
28.7
37.9
42.9
14.4
18.3
30.8
24.7
35.8
50~99
49.7
53.6
56.6
27.5
17.6
33.3
18.2
53.3
100~299
38.6
52.6
36.8
35.3
48.2
42.4
50.2
51.5
300~499
44.3
59.0
36.1
29.8
36.3
33.7
38.2
17.5
Above 500
31.8
69.7
51.5
29.5
34.1
33.9
31.5
23.7
Large company
45.3
56.6
43.8
15.7
19.1
33.0
29.1
24.4
Medium company
38.1
51.5
40.7
18.8
21.2
26.4
30.3
34.8
Small company
32.0
40.2
44.9
19.8
19.2
33.8
26.0
37.1

목 차
I.KIAT(2013) Performance Analysis Report
III. Case
46

Case - WooJin INC.
Foundation : 1980
Business sales : 4.4 billion won in 2007 and 11 billion dollars in 2010
This company has concentrated its energy on research and development field, and made research in domestic key industries
including the steel industry, semiconductor industry and nuclear industry since 1987 in which it set up the first measurement
technology laboratory. WooJin has made an investment in R & D field (research and development field) amounting to 5.8%
of the total sales since 2007. Its major technical field is measurement field and new material field.
1. measurement field
- development of TMS(Tele Meter System) data logger and monitoring software
- development of device to measure thickness of slag for molten metal
- development of digital measuring instrument for molten metal
- development of NIMS ( NSSS (Nuclear Steam Supply System) Integrated Monitoring system. )
- development of a digital indicator of safety class for nuclear station.
- development of digital M/A Station for nuclear station.
2. new material field
- development of high damping alloy (It is included in ferro-alloy and a new kind of alloy which can convert outside vibrational energy into thermal energy through phase change of metal.)
- development of high silicon cast iron with acid proof preventing various corrosion responses by making efficient oxide film.
option to purchase project As for WooJin, it can be a significant opportunity for growth to succeed in developing a measuring instrument system used for nuclear reactor with Korea Hydro & Nuclear Power co., ltd. through research and development in the long term in order to devise a new business plan during the foreign exchange crisis. In particular, with the governmental technology development project with an option to purchase deciding buyer company in public in advance, WooJin can succeed in developing a new measuring instrument in nuclear reactor field thanks to funding for research and development. Moreover, Woojin is scheduled to make progress in development of technology through strategic partnership with POSCO.
Company outline

Case - SeHwa Electronics
Foundation : established in 1987 and started an LCD Window department in 2000
SeHwa Electronics has dealt with an order of 'development of touch window using four wire resistance' from LG
Electronics for 12 months (from December 2007 to November 2008). Through this process, it was provided support
fund of 247 million won from the government. Before this task was completed, touch window using resistance
method used for mobile cellular phone from LG Electronics had to be entirely imported from foreign countries and
lagged behind developed countries like Japan in producing technology by more than 5 years.
Option to purchase project
SeHwa Electronics to develop new touch window products used for
mobile cellular phone that would apply and combine touch screen basic technology, making integrate flat window
and touch screen with LG Electronics. In the process, a variety of core processes were utilized : technology to design
electrode pattern, to etch metallic oxide dealt with ITO deposition and to print high detailed patterns.
In addition, the company had to materialize simpler product structure by combining adhesive tape bonding technology,
UV printing and bonding technology, CNC detailed-operating technology.
Through this project, LG Electronics could reduce costs by using domestic parts and jumped to the same level of quality
and productivity of industrialized countries, as a result of which the major company had competitive price and quality
compared to developed countries. SeHwa Electronics also turned over 34.4 billion won for four years (from 2008 to 2011)
and secured technology with the same product. Moreover, this company added a new production line and brought about 100
new jobs.
Company outline

End of Document
Dr. Woosung Lee
Research Fellow
Economic Analysis Division
Science and Technology Policy Institute
82-2-3284-1781
leews@stepi.re.kr
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