Promoting R&D Collaboration in Ecuador

Promoting R&D in Ecuador
U-I-R Collaboration and
Supportive Instruments for R&D

Hosaeng Rhee & Yoocheul Song
Fernando Rosero (SENESCYT)

Center for International Economic Studies

Contents

1. Introduction
2. Ecuador’s current status: NIS and incentive measures for R&D
1) R&D competitiveness of Ecuador
2) National Innovation System of Ecuador
3) U-I-R R&D collaboration in Ecuador
4) R&D incentive system in Ecuador
5) Priorities in resolving the problems and bottlenecks

3. Korea’s experiences: U-I-R collaboration and non-tax/subsidy measures
1) Economic Development and the role of S&T in Korea
2) U-I-R R&D collaboration in Korea: How to facilitate communication and cooperation?
3) Other instruments to promote R&D in Korea with a focus on non-tax/subsidy measures

4. Implications and policy suggestions
1) Implications of the Korean experiences
2) Policy suggestions

2

1. Introduction

Why innovation?

NIS: What do we need for R&D promotion?

Snapshots: Ecuador and Korea, where have we been?

Ecuador is up to …

Focus of the KSP Ecuador 2012 on R&D

3

1. Introduction
Why innovation?

• Innovation: technologies or practices that are new to a given society (World Bank 2010)
- Technologies or practices that are being diffused in that economy or society
- Dissemination and use important

• Why promote innovation?
- Main source of economic growth
- Improve productivity
- Foundation of competitiveness
Generates positive externalities and improves welfare
Government interventions are needed to promote R&D.

• Innovation capabilities important for both developed and developing countries
- Developing ones: need ways to achieve broadly inclusive growth and innovation to benefit
their many poor and not simply a narrow elite

4

1. Introduction
Why innovation?
How Innovation Contributes to Growth:
A Comparison of Ghana and the Republic of Korea, 1960–2005

Source: World Bank (2010), Innovation Policy: A Guide for Developing Countries
World Bank (2007), Building Knowledge Economies: Advanced Strategies for Development.
Note: TFP = total factor productivity

5

1. Introduction
National innovation system: What do we need for R&D promotion?

National Innovation System

Human and Institutional Capabilities and
Global S&T Environment Capacities of Each Actor (universities,
industries, research institutes) of the NIS
to carry out R&D related activities, need to
Government be secured and enhanced.

Research Collaboration among major actors of the
Universities Institutes NIS needs to be promoted to facilitate
generation, transfer and commercialization
of new technologies
Industries
Financial Financial institutions’ active role needs to
Institutions
be encouraged to help promising R&Ds
Other related with financial resources for development
Actors
and commercialization of new
technologies.

6

1. Introduction

Government as a gardener Components of National S&T Policy
• Government can facilitate the articulation and
implementation of innovative initiatives,
since innovators need basic technical, financial, and
other support. Legal
• Government can reduce obstacles to innovation in Framework
regulatory and legal frameworks.
• Government-sponsored research and development
(R&D) structures can respond to the needs and
demands of surrounding communities. S&T
Promotion Policy
• The educational system can help form a receptive and Organizations Programs
creative population.
Need a governance system of S&T polices

7

1. Introduction
U-I-R R&D collaboration, what & why?

What?
Purpose Collaboration Activities
R&D Joint research, commissioned research, dispatched research, invited research
Accreditation for engineering education, student-specific education, student
Training & Education
OJT & intern, employee retraining, scholarship for employee
Technology transfer between university and institute, breaking technological
Technology Transfer &
bottlenecks in the industry field, sharing research facilities, operating
Production Support
incubating center
Personal Exchange Networking & exchange among researchers, holding joint seminars

Why? related to the purpose and barriers of UIR collaboration
The U-I-R relation plays a critical role in making R&D investment effective as well as efficient.
• Each actor’s limited knowledge and resources
- More resources required to produce globally competitive products
- Traditional in-house R&D is not enough often
• Open and collaborative innovation is more effective than closed ones.
- Cost of innovation cheaper and innovation process often quicker with collaboration
- Quality of innovation often diverse and better with collaboration
• Collaboration with global players often ensures cross licensing and global standard setting

8

1. Introduction
U-I-R R&D collaboration, what & why?
Barriers
Fundamental barriers coming from the differences of information, financial and human resources,
S&T knowledge and capability.
- Industry: relatively enough financial and human resources, not enough creative ideas
- University: recent knowledge, not enough field knowledge.
Need to have coordinators who understands all three sides of U-I-R to promote UIR collaboration
Success factors
Success factors Essential elements
- Actors’ capabilities and screening
Mutual benefit
- Continuous monitoring and information accumulation
- Density and cost-effectiveness of communication
Communication
- Design and implementation of an effective way of communicating
- Vision provider and coordinating organizations
Coordinator
- Coordinator’s expertise and incentives
- Agreement on how to share gains
Binding contract
- Monitoring system to control opportunistic behavior
- Spatial proximity (Cluster)
Ongoing relationship
- Compatibility of interests
Source: Baik and Cho (2008), “Developing a new model for cooperation among SMEs, Universities and Research institutes”

9

1. Introduction
GERD/GDP ratio in Latin America, 2007 (%)

Source: UNESCO Science Report 2010

10

1. Introduction
GERD by source of fund, 2002 and 2007

GERD by source of fund (%)
2002 2007
Business Higher Private Not Business Higher Private Not
Government Abroad Government Abroad
enterprise education non-profit specified enterprise education non-profit specified
Korea 72.2 25.4 1.6 0.4 0.4 73.7 24.8 1.0 0.3 0.2
Japan 74.1 18.4 6.5 0.7 0.4 77.7 15.6 5.6 0.7 0.3
Germany 65.5 31.6 0.5 2.4 67.9 27.7 0.4 4.0
US 65.2 29.1 2.7 3.0 67.3 27.0 2.7 3.0
Brazil 45.0 53.3 1.7 44.7 52.9 2.4
Russia 33.1 58.4 0.3 0.1 8.0 28.7 64.7 0.5 0.2 5.9
India 19.3 76.5 4.1 29.6 66.0 4.4
China 60.1 29.9 1.9 8.0 70.4 24.6 1.3 3.7
Vietnam 18.1 74.1 0.7 6.3 0.8
Indonesia 14.7 84.5 0.2 0.7
Ecuador 17.4 69.3 4.0 1.2 4.2 4.0 21.5 58.1 3.9 3.3 7.0 6.2
Colombia 29.1 22.5 39.3 1.9 7.2 27.2 37.7 25.6 5.4 4.1
Chile 33.2 54.6 0.4 0.3 11.3 45.8 44.4 0.8 0.3 8.7

11

1. Introduction
GERD by performing sector, 2002 and 2007
GERD by performing sector (%)
2002 2007
Business Higher Private Business Higher Private Not
Government Government
enterprise education non-profit enterprise education non-profit specified
Korea 74.9 13.4 10.4 1.3 76.2 11.7 10.7 1.5
Japan 74.4 9.5 13.9 2.1 77.9 7.8 12.6 1.7
Germany 69.2 13.7 17.0 70.0 13.9 16.1
US 70.0 12.1 13.4 4.5 72.6 10.6 12.9 3.9
Brazil 40.0 20.6 38.9 0.1 40.2 21.3 38.4 0.1
Russia 69.9 24.5 5.4 0.2 62.9 30.1 6.7 0.3
India 19.3 76.5 4.1 29.6 66.0 4.4
China 61.2 28.7 10.1 72.3 19.2 8.5
Vietnam 14.5 66.4 17.9 1.1
Indonesia 14.3 81.1 4.6 3.7 96.2
Ecuador 11.4 33.5 11.4 43.7 21.5 58.1 3.9 3.3 13.2
Colombia 25.8 3.0 53.1 18.0 22.7 5.7 52.4 19.3
Chile 35.8 11.0 38.8 14.3 46.2 10.2 32.0 11.6
Peru 10.7 31.7 47.7 11.4 29.2 25.6 38.1 7.1
12

1. Introduction

Gross Expenditure on Research and Development in Korea, 1964-2004

Ecuador’s
Private
share
80

Ecuador’s
0.25 GERD/GDP

Source: Ministry of Science and Technology

13

1. Introduction
Ecuador is up to …

• Transformation of production matrix:
Export of low value-added, primary commodities
High value-added and quality, energy efficient and environment friendly
production and products, high quality employments
Need technological innovations

• Inclusive development :
Need for mechanism to encourage MSMEs’ to develop and commercialize technologies
- Incubating innovative entrepreneurs
- Assisting MSMEs’ innovation and commercialization activities

• Yachay typical form of U-I-R collaboration
= high-level universities + research centers + companies
How to induce Yachay to carry out innovative activities for transformation of production matrix?

14

1. Introduction

Focus of the KSP Ecuador 2012 on R&D

The Ecuadorian government’s request for the KSP Ecuador 2012:
• U-I-R R&D collaboration mechanism to facilitate communication and cooperation
among the major actors of the NIS
• Non-tax/subsidy measures to promote R&D

Diagnosis of Ecuador’s NIS: Current status and bottlenecks
U-I-R R&D collaboration system:
How to facilitate communication and cooperation among actors of the NIS
Incentive measures to spur R&D:
With a focus on non-tax/subsidy instruments (measures or institutions)
Implications and policy suggestions

15

2. Ecuador’s current status
National Innovation System and Incentive Measures for R&D

Fernando Rosero (SENESCYT)

R&D competitiveness of Ecuador
National Innovation System of Ecuador: Current status and bottlenecks
U-I-R R&D collaboration in Ecuador: Current status and bottlenecks
R&D incentive system in Ecuador: Current status and bottlenecks
Priorities in resolving the problems and bottlenecks

16

(1) R&D competitiveness of Ecuador
• Ecuador is performing low regarding factual results based on R&D

High Tech exports /
manufacture exports,
(%) 2009

R&D investment as % of GDP, 2007
Source: CEPAL 2010x

17

Global investment in R&D in absolute and relative terms, 2002 - UNESCO
6000
Researchers per million population

• Compared to other countries, Ecuador´s
5000 Japan
GERD and number of researches is modest.

4000

Russia France
Germany
3000
Korea

2000

1000
China
Indonesia Chile Brazil
Colombia
0 Vietnam India
Peru
0 0,5 1 1,5 2 2,5 3 3,5 4
Ecuador GERD as % of GDP(2002)
GERD: Gross Expenditure on Research and Development

18

Global investment in R&D in absolute and relative terms, 2007 - UNESCO
6000
Researchers per million population

Japan
• Compared to other countries, Ecuador´s
5000
GERD and number of researches is modest.
Korea
4000
France
Germany
Russia
3000

2000

1000 China
Brazil
Indonesia Colombia Chile
Vietnam
0 India
0 Peru 0,5 1 1,5 2 2,5 3 3,5 4
Ecuador
GERD as % of GDP(2007)
* Vietnam: 2002, Indonesia: 2002/2005, Chile: 2002/2005

19

• Ecuador contribution to regional R&D investment as of 2008 was only 0.54% of total.

Latin America and the Caribbean R&D Investment (In US$ Million)
2006 2008 2009
Argentina 1.059,8 1.721,0 1.846,5
Brazil 10.978,8 18.390,6 18.929,2
Colombia 230,3 344,4 361,9
Costa Rica 97,0 118,8 159,1
ECUADOR 60,8 140,7 n.a.
México 3.601,3 3.837,1 3.485,3
Latin America and
17.208,9 26.027,3 26.907,9
Caribbean
Source: Source: RICYT, http://www.ricyt.org

20

• Ecuador´s GERD as percentage of GDP (2008) is 0.25%: about two and half times
below the regional average of 0.65%

4

3,5

3

2,5

2

1,5

1

0,5

0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Ecuador Brazil Middle income Korea, Rep.

Source: World Bank Database
Source: RICYT, http://www.ricyt.org

21

• Ecuador´s R&D influencing factors are low. Showing a slightly increase during 2012.

Innovation
6,00
5,00
4,00
Brazil
3,00
2,00
Ecuador
1,00
Business Technological
0,00
sophistication readiness Japan

Korea.Rep

Vietnam

High education
and training

Innovation index of the Global Competitiveness Report : WEF

22

• Ecuador´s R&D influencing factors are low. Showing a slightly increase during 2012.

Total Expenditure for
R&D as % of GDP, 2008
10
High-Tech Exports as % of Private Sector Spending
Manuf. Exports, 2009 8 on R&D (1-7), 2010

6
Patents Granted by Science and Engineering
USPTO / Mil. People, avg Enrolment Ratio Ecuador
4
2005-2009 (%), 2009 Korea, Rep.
2
Brazil
0 Malaysia
S&E Journal Articles / Researchers in R&D / Mil.
Mil. People, 2007 People, 2009

University-Company
Royalty Payments and
Research Collaboration (1-
receipts(US$/pop.) 2009
7), 2010
Royalty and License Fees Firm-Level Technology
Receipts (US$/pop.), 2009 Absorption (1-7), 2010

Innovation indicators in the KAM (Knowledge Assessment Methodology): World Bank

23

(2) National Innovation System of Ecuador
Historically Ecuador shows isolated efforts generated by national institutions such as
academia, private enterprises and government looking to launching a national
innovation system.

Government
• Starting 2008, a larger and better government allocation of R&D funds and initiatives:
Long term impacts.
• SENESCYT developed the National Research Policy developed in 2012:
big changed yet… results to come. next page
• Only by 2012 government is joining state efforts to invigorate R&D toward a change
in national productive matrix. 
• Government has not found a way for strong linkages between Academia-Government
and Industries. 

24

National Research Policy developed by SENESCYT

A. Restructure the National Research System
1.1 Restructure management models of Public Research Institutes
1.2 Recovering scientific production capacity of actors of CTIS System
1.3 Creation of the National System of Researchers
B. Foster integration of National Research System actors
2.1 International recognition of researches with empowerment of researchers.
2.2 Encouragement and recognition of Intersectoral Network of Science and Technology
C. Promoting Scientific research focused on productive matrix change
3.1 Funding of programs and projects for selective import substitution
3.2 Funding of scientific researches to generate value-added products to diversify exports
3.3 Funding of researches that allow optimize access, coverage and quality of services and
improve decision making in the context of risk management.
3.4 Development of Basic Researches in strategic areas as a central focus of research.
3.5 Development of Social Science Researches with emphasis in History, History of Culture
and Arts as a tool for knowledge dialogue.

25

Universities
• During 2008, only 1,187 university professors (3.6% of total) included research
activities on their working schedule (CONEA, 2009) 
• 2012: radical changes in the Ecuadorian university system: 14 out of 67
universities were stepped out. They didn´t meet basic R&D requirements.
• Universities have autonomy to operate and to partner. However, they have to spend
at least 6% of its budget to fostering own R&D capacities.
• Traditionally, funding research projects at small scale. 
• Universities working at low to none degree linked to industries. 

Industries
• Private companies showed a “low to none support of innovation activities with the
exceptions of petroleum and the shrimp and food industry.” (Ponce, 2011)
• Only 3,124 out of 500,000+ Ecuadorian enterprises invested in R&D during year
2009, totaling US$ 231.65 million. (Source: INEC)
• Industries require to define efforts: Basic R&D or applied R&D.
• SMS industries struggle powering R&D: Finance and cultural reasons.
26

Research Centers
• Starting 2011 key changes (budget allocation and management) in public research
centers focused on foster R&D.
• Activities of 11 Public RC reorganized in 2012: research lines re-defined in order
to meet national goals.
• No formal tracking of private RC activities / outcomes 
• Public Research Centers used to work at low to none degree linked to local
industries. 

Other institutions?
• Financial institutions, other promotion organizations ….

S&T Policy governance?

27

Final Ideas

• SMB put low efforts on R&D:
- Their products requires low innovation;
- National market is price-oriented more than quality-oriented;
- Culturally SMB don’t leverage on their peers in order to improve their products.
• Ecuador don’t have priorities to bring up technological demands: Government promotes changing
the productive matrix, however, still doesn’t determines what intensity (High-medium-low) and
which sectors (besides traditional ones).
There are some hints on which sectors the Government wants to bet
(petrochemical, nanotechnology, etc), yet, there’s no evidence on which sector the private sector
would like to consider. That could be dangerous since national efforts can take different paths.
• Since 92% of private R&D investment is made by large enterprises, the main target of Ecuador’s
innovation policy should be Small and Medium size business (Micro are too little to invest)
• It seems natural that transfer of technology will come to Ecuador as imitation or internalization of
foreign technologies more than generating new tech R&D investment shows low levels.

28

(3) U-I-R R&D collaboration in Ecuador

• Scarce R&D process demand from companies toward academia and vice versa.
• Partnering with academia does not come naturally to Ecuadorian companies.
Even more, just a few large companies have developed their own research
centers.
• Industries: Restricted fund allocation toward R&D.
• Limited qualified human resources in R&D 0.46 researchers per every
thousand of economically active population. (Source: RICYT)

29

(3) U-I-R R&D collaboration in Ecuador

Problems that delay promotion of U-I-R R&D collaboration
Low added value in goods and services produced NEED of R&D to improve
products.
• Need to strength essential capabilities of each R&D actor
• Define Ecuador´s level of technology to develop: per industry, per actor.
• R&D developed by academia guided by different motivators than those of companies.
Advances not linked to industrial needs.
• Environment not suited to scientific and technology entrepreneurs.
• Lack of mechanisms (concrete/efficient) to make actors work together
- No communication tools among players of national R&D system: They don´t know each
other.
• Lack of legal framework supporting and promoting R&D activities.
• Low leverage of national networking capacities and international network assistances.

30

(4) R&D incentive system in Ecuador

• No financial (Venture Capital, Tax exemptions) or non-financial (Public
recognition, etc.) solid incentives for U-I-R to strongly engage in R&D.
• National finance system does not support R&D initiatives: solutions focused to
regular financial customers.
• Ministry of Industries have support SMEs activities specially focused on
development more than in research. Initiatives supported quality and manufacturing
process.

31

(5) Priorities in resolving the problems and bottlenecks

• Ecuador shows a lack of information/data regarding R&D including key element when
allocating resources, defining policies and assessing impacts.
Survey on innovation
• Create legal framework to foster and engage R&D activities: Governance for R&D system.
• Strengthen each R&D actors capabilities (Within / Among).
• Find ways to generate linkage between different players of Ecuadorian innovation system.
Government still looking to build a National System that encompasses all potential actors.
• Create effective mechanisms to put actors working together in R&D initiatives.
• Develop strong instruments to increase low national R&D level.
• Need to have a national focus on which technology to develop: High, Medium, Low Tech.

32

3. Korea’s experiences
U-I-R collaboration and non-tax/subsidy measures

Economic development and the role of S&T in Korea
• Increase in technology intensity
• Statistics on Korea’s R&D
• Development strategies and S&T policies – Characteristics

U-I-R R&D collaboration in Korea: How to facilitate communication and cooperation?
• Evolution of U-I-R R&D collaboration in Korea
• Mechanisms to facilitate U-I-R communication and cooperation

Other instruments to promote R&D in Korea: focus on non-tax/subsidy measures
• Chronology of major policies – Characteristics
• Non-tax/subsidy measures: Technology Certification, Demand-based support, Guarantee

33

(1) Economic development and S&T in Korea
Increase in technology intensity
Top 10 Leading Industries in Korea’s Manufacturing Sectors
1970s 1980s 1990s 2000s
1 Food & beverage Textile & apparel E&E products E&E products
2 Textile & apparel Food & beverage Automobile Chemicals
3 Chemicals Chemicals Food & beverage Automobile
4 Automobile E&E products Chemicals Basic metal
5 Paper & printing Basic metal Textile & apparel Food & beverage
6 Non-metallic Automobile Basic metal Machinery
mineral products
7 Coal & petroleum Coal & petroleum Non-metallic Textile & apparel
refinery mineral refinery products
8 E&E products Non-metallic Machinery Fabricated
mineral products metal products
9 Machinery Paper & printing Paper & printing Paper & printing
10 Basic metal Machinery Fabricated Coal & petroleum
metal products refinery
All manufacturing All manufacturing All manufacturing All manufacturing
(% of GDP) (% of GDP) (% of GDP) (% of GDP)
Source: Bank of Korea, National Accounts and Statistical Yearbook, various issues.
Note: Shares are of manufacturing value-added total. E&E = electrical and electronics.

34


Korea’s Top 10 Exports: Evidence on Industrial Upgrading
1960s 1970s 1980s 1990s 2000s
1 Iron Ore Textiles Textiles Electronics Semiconductors
2 Tungsten Ore Plywood Electronics Textiles Computers
3 Raw Silk Wigs Iron and Steel Footwear Automobiles
Products
4 Anthracite Iron Ore Footwear Iron and Steel Petrochemical
Products Products
5 Cuttlefish Electronics Ships Ships Ships
6 Fruits and Wireless
Live Fish Vegetables Synthetic Fibers Automobiles Telecomm equipment
7 Iron and Steel
Natural Graphite Footwear Metal Products Chemicals Products
8 Plywood Tobacco Plywood General Machines Textiles Products
9 Rice Iron and Steel Fish Plastic Products Textile Fabrics
Products
10 Electronics Home
Bristles Metal Products Electrical Goods Containers Appliances

35


Technology-intensive exports in Korea (% of manufactured exports)

(%) 40,0

35,0

30,0 Korea, Rep.

25,0 Ecuador

Lower middle income
20,0
Low income
15,0
Upper middle income
10,0

5,0

0,0
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
* High-technology exports: products with high R&D intensity, such as
aerospace, computers, pharmaceuticals, scientific instruments, and electrical machines
Source: World Bank Database

36

Stats on Korea’s R&D
1965 1970 1975 1980 1985 1990 1995 2000 2003 2006
R&D expenditure 2.1 10.5 42.7 282.5 1,237.1 3,349.9 9,440.6 13,848.5 19,068.7 27,345.7
Government 1.9 9.2 30.3 180 306.8 651 1,780.90 3,451.80 4,663.20 6,632.1
Private Sector 0.2 1.3 12.3 102.5 930.3 1,698.90 7,659.70 10,387.20 14,326.60 20,631.3
Gov’t vs. Private 90:10 88:12 71:29 64:36 25:75 28:72 19:81 25:75 25:75 24:76
University R&D NA 0.4 2.2 25.9 118.8 244.3 770.9 1,561.90 1,932.70 2,721.9
Gov’t Res. Inst. R&D NA 8.9 28.1 104.5 367.2 731 1,766.70 2,032.00 2,626.40 3,497.1
Corporate R&D 0.2 1.3 12.3 81.4 751 2,374.50 6,903.00 10,254.70 14,509.70 21,126.8
R&D/GNP 0.26 0.38 0.42 0.77 1.58 1.95 2.51 2.40 2.63 3.23
Manufacturing Sector R&D NA NA 16.7 76 688.6 2,134.70 5,809.90 8,584.90 12,400.68 19,025.8
Percent of Sales NA NA 0.36 0.50 1.51 1.96 2.72 2.17 2.64 2.88
Number of Researchers 2,135 5,628 10,275 18,434 41,473 70,503 128,315 159,973 198,171 256,598
Gov’t Research Inst. 1,671 2,458 3,086 4,598 7,542 10,434 15,007 13,913 14,395 16,771
Universities 352 2,011 4,534 8,695 14,935 21,332 44,683 51,727 59,746 65,923
Private Sector 112 1,159 2,655 5,141 18,996 38,737 68,625 94,333 124,030 173,904
R&D expenditure 967 1,874 4,152 15,325 27,853 47,514 73,574 86,568 96,223 120,308
per researcher (1,000won)
Researcher per 0.7 1.7 2.9 4.8 10.1 16.4 28.6 34 41.4 53.1
10,000 Population
Number of Corporate 0 1 12 54 183 966 2,270 7,110 9,810 13,324
R&D Centers
* Unit for R&D expenditure ~ Manufacturing Sector R&D: trillion won
* Korea’s GDP in 2006: 908 trillion won or 952 billion US$ (current LCU or US$)

37

Stats on Korea’s R&D

Gross Expenditure on Research and Development in Korea, 1964-2004


38

Development of the Korea’s National Innovation System

Periods Development of the Korean National Innovation System
• Beginning of scientific education
1960s
• Beginning to build S&T infrastructure
• Establishment of government-sponsored research institutes
• Technical, scientific and further education Ecuador is
1970s
• Establishment of Daeduk Science Town
• Beginning of industrial R&D trying to
• Promotion of key technologies through National R&D Program carry out
1980s
• Activation of industrial R&D these tasks
• Mass production of high-qualified R&D personnel all together.
• Expansion of S&T related ministries
• Promotion of academic R&D potentials
• Expansion of R&D resources and their efficient utilization
1990s
• Introduction of regional innovation policies
• Introduction of National S&T Council (NSTC) system
Source: Chung, S. (2006), Technology and Management

39

Development strategies and S&T policies: Changes in Government Innovation Policy
Development Major policy Science and Human resources
goals directions technology (S&T) development
Build a production - Expand export-oriented - Build scientific - Decrease illiteracy
base for export- light industries institutions’ legal and - Establish a national
1960s oriented administrative frameworks infrastructure
- Mobilize domestic and
industrialization foreign capital
Build a self-reliant - Promote heavy and - Set up a scientific - Increase vocational
growth base chemical industries infrastructure: training
1970s - Build social overhead specialized S&T - Increase engineering-
capital institutions, Daeduck major college Graduates
Science Town
Expand Technology- - Conduct industrial - Promote R&D and private - Expand the higher
intensive Industries rationalization research centers education system
1980s - Decrease export subsidy - Develop national R&D - Develop semiskilled
and expanding import programs human resources
Liberalization
Promote high-tech - Support technology Promote R&D programs on - Develop highly skilled
innovation development highly advanced human resources in
1990s - Build an information technologies strategic fields: IT, BT etc.
Infrastructure - Develop lifelong learning
systems

Refer to the Appendix for more explanation.


S&T Leadership
Technology Catching-up
Institutional Building

1962 1966 1967 1971 1981 1982 1987 1991 1992 1997 2004 2008 2011

1st 5-Year Ministry of S&T National R&D Financial Crisis
Economic (MOST) Program (NRP) Standing
Plan NSTC

MEST& MKE
Korea Institute of S&T Technology Development • Information and
(KIST) Promotion Act Communication R&D
Program (ICRP) Deputy Prime
• Highly Advanced Minister of
National Project MOST (OSTI)
(HAN)
Source: Jang, Y. (2011), “Evolution of Korean STI Policies”


Development strategies and S&T policies: Governance (late 2000’s)

President PACEST
National S&T
Policy & Presidential Council on
Education, S&T
Coordination
MOSF NSTC
Ministry of Strategy National S&T Commission
B and Finance
P
Ministerial S&T
Policies/ Planning MEST MKE Other ministries
B P
B P
S&T programs/ R&D mgmt
planning/ NRF KIAT/KEIT agencies
evaluation
B P

KRCF ISTK
Performing S&T Korea Research Council Korea Research Council
program for Fundamental S&T for Industrial S&T

Universities/ GRIs/Firms
MEST: Ministry of Education, S&T
MKE: Ministry of Knowledge and Economy
Note : P and B denote policy and budget respectively NRF: National Research Foundation
KIAT: Korea Institute for Advancement of Technology
KEIT: Korea Evaluation Institute of Industrial Technology

Development strategies and S&T policies: 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 technology (1970s)
Modifying imported technology/ Developing domestic technology (1980s)
Advancing catching-up technology (1990s)
Focusing on Endogenous Technology (2000s~ )
Major Function: Providing Needed Technology to Industries
Source: Jang, Y. (2012), “Korean STI Strategies for National Development”, Presentation for the Ecuadorian Delegates


43

Development strategies and S&T policies: GRIs

1945 1960 1966 1970 1980 1990 2000

KIGAM KIST
1948 1966
KRIBB KITECH KISTI
1985 1989 1991
KAERI KORDI KFRI
1959 1973 1976
KOPRI KBSI KIOM
KICT 1987 1988 1994
1962 ETRI
KRRI
1976
1996
KIT
1982
NFRI NTMS
1996 2005
KASI KRICT KFRI
1974 1976 1987
WKIMCHI
KRISS KIMM KIER 2010
1975 1976 1977
KARI
1989
KIMS
2007
Source: Jang, Y. (2012)

Development strategies and S&T policies - NRDP
National R&D Program by Stages
Formation stage (1982-84) Take-off stage (1985-1990) Maturing stage (1991 ~ )
Objective Internalization of Development of Creative research
Foreign technologies Core technologies Future-oriented research
Planning No planning: Bottom-up Based on loose Long -term plan R&D planning
Technology foresight
Main actors Government R&D Main: GRI Main: GRI,
Institutes (GRI) Minor: Universities with increased role of
and Industries universities and industries
Source: Ministry of Science and Technology(1997), Thirty Year History of Science and Technology, Republic of Korea

Korea’s Industrial Technology Policy: 80% of Government’s total R&D budget spent on NRDP
National R&D Infrastructure Institutional
Incentives
Programs & Diffusion Support
Objectives To develop generic To enhance intermediary To nurture GRI and to To induce/assist private
industrial technologies functions and to fill the gap strengthen GRI’s research enterprises’ technology
among innovation actors capabilities development activities
Tools Ministries’ R&D - Research personnel Funding for GRI’s - Tax-exemption
programs - Technical information operational expenses and - Financial support
- Coop. R&D facilities own research projects - Subsidy for technology
- Regional R&D centers etc development
Effects On To expand To facilitate diffusion and to To bring up helper/partner To strengthen industry’s
Industry knowledge/technology make better industry’s use of for industry’s technology own technological
pool for industrial use technologies development capabilities
Source: KDI(2009), Models for National Technology and Innovation Capacity Development in Turkey
45

Development strategies and S&T policies – S&T HRD

S&T HRD Policy in Korea
1960s 1970s 1980s 1990s 2000s
Policy
Paradigm Duplicative Imitation Creative Imitation Innovation

Goal Nurturing Nurturing engineers Nurturing highly Nurturing world-class Nurturing creative
of technicians for heavy & chemical qualified engineers scientists and scientists for frontier
S&T HRD for light industries Industries for technology- engineers for frontier industries
Policy intensive industries industries
Policy • Organized mid & • Established • Established S&T • Strengthened • Systemized S&T
Measures long-term plans and government research-oriented cooperation gifted student
of laws for HR research institutes university between industry, education
S&T HRD • Established • Attracted highly • Funded highly academy and GRI • Fostered woman
Policy
“Technical High qualified Korean qualified students • Supported for world S&T human
School System” scientists & for studying class professors resources
• Established “The engineers from overseas • Scholarship to • Supported whole
Science and foreign countries students in master career paths of S&T
Technology and doctoral degrees human resources
Agency”
KDI(2012), Strengthening Uzbekistan's National Innovation System

46

Development strategies and S&T policies – Characteristics

• Imitation Internalization Generation,
Low-tech High-tech stage by stage
• S&T HRD policies’ focus moved from craftsmen to technician and then to
engineers in line with each stage of economic development

• Very active role of the Government Research Institutes to meet the technological
needs of the industries

• At the early stage, focus on industrial and applied R&Ds

• As universities’ R&D capabilities improved, university-industry collaboration
became active for incubation of technology holders and small businesses.

• The National R&D Programs have played a very influential role in internalizing
foreign technologies, developing core and frontier technologies.
•

47

(2) U-I-R R&D collaboration in Korea

Evolution of U-I-R R&D collaboration in Korea

Mechanisms/measures to facilitate U-I-R collaboration:
• Categories of the Government Policies
• Communication facilitation mechanisms/measures

48

Characteristics Main contents
1960s Starting to develop • Focus on policies for nurturing manpower such as security of scientific technical
industrial HR manpower, enhancement of skill level of workers, security of skilled manpower etc
• Enactment of the ‘Act for Promotion of Industrial Education, ’the ‘Engineer Act,’ the
‘Vocational Training Act’ etc
1970s Building up capacities • Conversion of role of KIST as the core main agent of joint R&D
of major actors of the • Enactment of the Technology Development Promotion Act for acceleration of
NIS development of Korea’s own technologies
- Establishment of the 5 major government-supported research institutions and so on
1980s Full-scale progress of • Full-scale support through the national R&D business
U-I-R collaboration • Construction of the foundation for strengthening of U-I-R collaboration
led by the government • Enactment of the Act for Nurturing Industrial Technical Research Union for the support
of cooperative research
1990s Government-led • Independent and dispersive promotion of national R&Ds by each department
promotion of U-I-R • Promotion of construction of regional foundation
R&D • Establishment of Techno Park, regional cooperative research centers etc
2000s Vitalization of • Designation and expansion of U-I cooperation universities
university-industry • Acceleration of commercialization of R&D and strengthening of Technology Business
cooperation Incubator function of colleges
• Enactment of the Science Technology Basic Act, the Act for Acceleration of Technology
Transfer, the Patent Act, the Act for Acceleration of Industrial-educational Education and
Cooperation, the Basic Act for Development of Human Resources etc
Source: KDI(2012), Technical Engineering Education Model of Korea Polytech University(KPU) 49


• U-I-R R&D clusters
Daedeok Innopolis, Gwanggyo Technovalley, Pangyo Technovalley, Ansan Science Valley etc

• Technology Business Incubator (TBIs) in universities

• The Korea Polytech University’s industrial-education cooperation system
KPU: established in the industrial complex for industrial-educational cooperation
- About 90% of the enterprises in the industrial complex where the university is located
are SMEs with sales of less than 10 billion won and 50 or fewer employees
- SMEs’ urgent need to develop products, technologies through industrial-educational cooperation
KPU’s Partner company system: an industrial-educational cooperation system with a unified network
Professors and students of university and local enterprises participate together
Regional base for partner companies
Support tailored to local industry
Connecting education, research and employment
Diverse cooperative activities such as organic exchanges of information, joint technical development
etc between SMES and the university

50

Mechanisms/measures to facilitate U-I-R collaboration

Communication facilitation mechanisms in Korea
Coordinating institutions

• University and Industry Cooperation Center (UICC) in universities/colleges
Korean version of Industry Liaison Office (ILO)
Technology Licensing Office under the UICC for technology transfer and commercialization

• Technology Business Incubators (TBIs) in universities/colleges and industrial complexes
Improving the survival rate of new enterprises that can provide more employment opportunies
Assisting micro-small and small enterprises with technological capabilities
to develop technologies and products right before and after start of business
Transfer or commercialization of technologies developed by universities
Providing in-company training opportunities for students

51


Coordinating institutions - Technology Business Incubators (TBIs)

R&D Prototypes Commercialization

Technological, Financial, Managerial Assistance
Sharing of facilities and equipments

• Technology incubation as well as Business incubation supported by various assistances
• Around 280 TBIs in 2011
• 80% of the TBIs established and run by universities with the rest run by the central government and
various municipalities
- University TBIs: Financial assistance from the government for construction and operation of the TBI
• Spaces, facilities and equipments provided with preferential terms
• Technical consulting services to resolve difficulties in R&D
• Assistance for grants and preferential loans
• Consulting on management and marketing, provision of market information

52


Coordinators

• U-I-R Coordinators
As a Korean version of the industry relations coordinator
Identify, develop and maintain external relationships, primarily with companies to further the
university’s researches;
Promote the university’s capabilities, coordinate faculty interactions with companies;
Increase the number and/or value of industry research contracts, and assist small businesses

• Technology Coordinators
Technology experts mostly in GRIs as the Technology Coordinators
Financed by the Korea Research Council for Industrial Science & Technology that administers
13 GRIs on industrial technologies
SMEs with technological difficulties apply for short and mid-term projects
Technological experts in the GRIs are assigned to the SMEs selected, and help the SMEs resolve
technological difficulties

53

The partner company system by the Korea Polytech University: Main characteristics
Tailored education
University
Professors Students
Assistance

Partner companies
sharing brains and
latest equipments

Companies
Industrial complexes
University - enterprise - One tutor professor for each company
- Regular meetings of all partner companies reporting their performances
network - Technology Exchange meetings
- Technical guidance and advice: Tutor professor and students’ participation
University enterprise - Sharing of expensive equipments on favorable terms
- Provision of information on new technologies through the web system
Cooperation - Employee training courses tailored to the needs of companies
- Maintenance education and training of the employed
- Opportunities for students’ field practice in companies: 8 credits or more
Businesses University - Field experts invited to lecture as adjunct professors
Cooperation - Partner Companies’ Scholarship
- Participation in curriculum improvement through survey
Source: Korea Association of Industry, Academy and Research Institute (2011), No Innovation, No Future 54

The partner company system by the Korea Polytech University: Performances
categories Outcomes of industrial-educational cooperation 2009
Number of partner • Launch of the partner company system in Feb 2002
companies • 1000 companies in May 2002 Cooperative
• About 3,000 companies as of 2011 exchange Manpower
Business incubation Business incubation for 20 companies through the 29% exchange
Technical Business Incubator (2007) 46%
Operation of the courses of 748 CEOs for 14 terms since 2002 Technical
industrial technologies for exchange
CEOs 25%
Education for workers Commissioned education for 539 workers as of 2007
commissioned from
businesses Sales of Excellent Partner Companies
Re-education for workers 327 workers in 2001; 5,439 in 2002; 2,463 in 2003; (109 representative partner companies)
of businesses 3,301 in 2004; 2,166 in 2005; 2,483 in 2006
7000
Technical development and Support through the research centers in industrial-
directions educational cooperation, cooperative research centers,
TRITAS, consortiums of industrial and university etc 6000
Special lectures for CEOs • 9 lectures in 4 departments in 2005
of partner companies • 11 lectures in 4 departments in 2006 5000
Participation as adjunct 222 persons, including engineers of enterprises etc
professors 4000
Participation in field About 10,000 persons in 7,000 companies
practice of students 3000
Others Scholarship of partner companies, opening of (bil. Won) 2005 2006 2007 2008
equipments for experiments and researches etc
Source: KDI(2012), Technical Engineering Education Model of Korea Polytech University(KPU) 55

(3) Other instruments to promote R&D in Korea:
focus on non-tax/subsidy measures

History of Tax/subsidy measures to promote R&D

Examples of non-tax/subsidy measures
• Technology certification: NET mark
• Demand-based R&D support
• Technology guarantee: Kibo Technology Fund

56


History of Tax/Subsidy measures to promote R&D in Korea
Before 1970s 1980s 1990s
1970s 73 74 76 77 78 79 81 82 84 86 91 92
R&D Technology Development Reserve Funds System
Investment Tax credit or special depreciation for investment in
equipment to develop technology and manpower
Promotion
Duty abatement or exemption on goods for academic research
Tax credit for technology and
manpower development expenses
Tax exemption for real estates of
private enterprises’ affiliated research centers
Tax exemption for research devices and samples
Duty abatement or exemption
on goods for research
Technology Deduction and exemption of the corporate tax for the foreign investment
accompanied by technology requisite
Transfer
Reduction and exemption of tax amount
Promotion on technology transfer income
Income tax exemption for foreign technologists
Technology Provisional special consumption tax
rate for technology commodities
Commercialization
Reduction and exemption of tax for
Promotion start-up venture SMEs
Source: KDI(2009), Models for National Technology and Innovation Capacity Development in Turkey
57


Examples of non-tax/subsidy measures: Technology Certification: NET, NEP

Certification on New Excellent Technology, New Excellent Product since 1993

• Government’s certification on newly developed technologies and products
to promote technology and product innovation, especially by SMEs

• Incentives
Government’s priority purchases of NEP-certified products
Government’s priority purchases of products made by the NET-certified technologies
Assistance for marketing
Preferential credits for SMEs trying to commercialize certified technologies
Preferential treatment of certified SMEs in applying for government R&D projects
Tax deduction of capital investment for commercialization of the NET-certified technologies etc

2006 2007 2008 2009 2010 2011
NEP NET NEP NET NEP NET NEP NET NEP NET NEP NET
Applied 314 594 387 450 359 360 330 327 344 237 303 185
Certified 80 189 110 168 110 120 114 98 119 64 107 59
Ratio (%) 25.5 31.8 28.4 37.3 30.6 33.3 34.5 22.9 34.6 27.0 35.3 31.8

58


Examples of non-tax/subsidy measures: Demand-based R&D support

Purchase guarantee of new products developed according to the pre-specified demands

• Promoting R&D and product development of SMEs by securing demands in advance
• Demands for new products are specified by public organizations or private large companies
Selection of the SME that will carry out R&D and product development
Purchases guarantee of the new products developed by the SMEs selected for the projects
• The government or the large companies support part of R&D and product development costs.
Demands by the public organizations: government 75%, SMEs 25%
Demands by the private large companies: government 50%, the private large company 25%,
SMEs 25%
Usually 1~2 years of project period with the government’s maximum support of about ½ mil. $.
• Successful R&D and product development purchase the product by the demander
If successful, the SMEs pay back 10~20% of the government support
If not successful with moral hazard problem, return in full of the government support
• In practice since 2003, success cases accumulating

59


Examples of non-tax/subsidy measures: Kibo Technology Fund

• Providing credit guarantees to facilitate financing for new technology-based enterprises
• Promoting growth of technologically strong Small and Medium Enterprises (SMEs) and
venture businesses

Kibo Technology Fund’s Major Services
• Guarantees for monetary liabilities to financial institutions
Technology
• Guarantees given to innovation-leading SMEs
Guarantee • Technology Appraisal Guarantees
• Adoption and utilization of the Technology Appraisal Certification System
Technology • Feasibility Assessment of Technology
Appraisal • Comprehensive Technology Appraisal
Technological and Managerial • Business Consultation
Advisory Service • Support for Company Restructuring and Technology Transfer

Management of Guarantee • Investigation of Debtor’s Properties
• Subrogation Payments
Defaults and Claims
• Legal Procedure for Debt Collection

60


Examples of non-tax/subsidy measures: Kibo Technology Fund

Supervision & Contribution
Government
of Capital Funds 1. Application for Loans
2. Consultation and Application for technology Guarantee
KTF
Contribution of 3. Credit Investigation and Evaluation
Capital Funds
2 3 4 5 4. Approval of technology Guarantee
5. Issuance of a Letter of Guarantee
SMEs, 1 Financial
Venture Enterprises 6 Institutions
6. Provision of Loans

Capital Fund Formation and its Performance of the Kibo Technology Fund (unit: billion won)
2006 2007 2008 2009 2010
Guarantee Outstanding (A) 11,150 11,245 12,593 17,144 17,426
Contributions 809 608 595 1,401 459
Government (600) (200) (157) (720) -
Financial Institutions (209) (408) (438) (681) (459)
Capital Funds (B) 1,152 1,446 1,729 2,695 2,813
Guarantee Utilization Ratio (A/B) 9.7 7.8 7.3 6.4 6.2
* The Fund turned from loss to surplus from operation in the late 2000s.
Source: Kibo Technology Funds (http://eng.kibo.or.kr) 61


Synopsis: Ecuador’s current status in R&D

Implications of the Korean experience for R&D promotion in Ecuador

Policy suggestions: R&D promotion by U-I-R collaboration

Policy suggestions: Non-tax/subsidy incentive measures to spur R&D

62

(1) Synopsis: Ecuador’s current status in R&D

• Ecuador’s NIS is about to emerge still with problems that needs to be resolved.
Not so widespread culture for willingness to carry out R&D
Not enough capabilities and capacities of each actor of the NIS
Not so much tendency for the actors to collaborate and cooperate with each other
Not enough financial and non-financial supportive measures and mechanisms
Not firmly established legal framework on S&T governance, R&D promotion etc

• Ecuador just introduced R&D policies to improve R&D capabilities of universities
and GRIs. (not enough capacities, mostly basic researches)
Survey on innovation expected to be done by the first half of this year

• It looks like Ecuador is trying to catch them all in R&Ds.
Trying to catch them all from high-tech to low-tech at the same time
Trying to catch them all from basic to applied or industrial R&Ds at the same time
Trying to carry out technology imitation, internalization and generation all together

63

(2) Implications of the Korean experiences: Observations

• R&D is risky in nature, costs money, but, creates extensive positive externalities.
There exists decent rationale for government to intervene the NIS actors activities
with carrots and sticks.
Need to introduce financial and non-financial assistances that can
encourage especially SMEs to get involved in R&D and
help holders of promising technologies in establishing new enterprises and
commercializing their products successfully.

• Need to identify reasons why enterprises, whether large or small, are not willing to
pay attention to R&D for whatever level of technologies
Lack of competition in domestic markets?  Protection of domestic markets?
Not enough protection of the IPRs?
Not enough incentive measures?

64

(2) Implications of the Korean experiences: Observations

• Need to determine priorities in sequence for R&D and S&T-HRD
The current situation of Ecuador regarding R&D, seems to correspond to that of
around 1970’s in Korea.
Nevertheless, Ecuador looks like targeting development of all levels of
technologies and S&T-HRs.
- Which sectors first?
- What level of technologies and S&T HR first?

• Reform measures on universities and GRIs are in the right track to strengthen the
NIS actors’ capacities.
- Sticks have to come with carrots for more R&D activities.

• The capability and the role of GRIs should be strengthened.
- Establishment of GRIs that can meet the industries’ technological demands so as
to induce industries to participate in collaboration of R&Ds

65

(2) Implications of the Korean experiences
Suggestions on Ecuador’s general policy direction on R&D

A. Promotion priorities and right incentives
• Priority setting and concentration: Policy plan on what to promote first
- which sector for R&D, what level of tech., how much applied tech., what kind of S&T HR
• Incentive measures and mechanisms that are conducive to the priorities in R&D

B. The role of GRIs
• Diversification of GRIs to meet the industrial needs on technologies
• Enough support and strict evaluation
- Financial support for GRIs (also for universities) needs to be based on self-help to meet
technological needs of industries

C. S&T policy coordination system – Governance system
• Cross-cutting nature of S&T and innovation need to have coordination system
established
• The coordination body needs to take the lead in administering R&D promoting
measures and mechanisms

66

(3) Policy suggestions on the KSP Agenda: R&D promotion by U-I-R collaboration

A. Partner company system and the Technology Innovation Park (TIP)
• Can be applied to high-level universities, especially those in the City of Knowledge
• The TIP can facilitate collaboration between high-tech universities and technology-
intensive small enterprises
- Need to train and invite experienced U-I-R coordinators

B. Technology business incubators
• Can be applied to high-level universities along with the partner company system
• Also, the major local municipalities with many enterprises can provide TBIs to help
newly established ones survive and grow in the markets.

67

(3) Policy suggestions on the KSP Agenda: Non-tax/subsidy measures to spur R&D

A. Certification of new technologies and products
• Can play an important role in encouraging SMEs to develop new technologies by
providing certified technologies with various financial and non-financial incentives
For the certification to be effective, government’s incentives to provide demands for the
technologies/products and reduce cost burden have to be combined with publicity effects.

B. Purchase guarantee of new products for pre-specified demands
• Can facilitate SMEs R&D by resolving marketing problem at the initial stage
May be combined with cost-sharing by the government
• Can facilitate industry-industry (or large-small companies) cooperation

C. Technology guarantee fund
• Can play an important role in encouraging financial institutions to provide loans to
promising high-level technologies by reducing risks involved in the loans.
At the early stage, can be applied to manufacturing technologies of priority industries
Need well-established technology appraisal capacities
Consulting and advisory services to help the guaranteed survive and succeed in the markets

68

Appendix
Economic development and S&T in Korea

Expand Expand heavy Expand Promote Transition
Major Direction of exp-oriented and chemical tech-intensive high-tech to knowledge-
Industrial Policy light industries industries industries innovation based economy

Factor-driven Stage
Development Stage Investment-driven Stage
Innovation-driven Stage
Cheap labor
Sources of Manufacturing capability
competition Innovative capability

Scientific Scientific R&D and Leading Role in New Challenges
Institution Infrastructure Private Research Strategies Area
Building Setting Lab Promotion
- MOST/KIST - GRIs - NRDP - Enhancing university
S&T Role of - S&T promotion act - Daeduk sci. town - Promoting private Research capability
Government - 5-year economic - R&D promotion act research labs - Promoting co-op
plan includes S&T - KAIST: highly - Promotion of research
qualified personnel industrial R&D - Policy coordination
- GRI restructuring

Innovative
Capability of
Private Sector

Source: KDI(2012), Toward Knowledge-based Economy of the Kingdom of Saudi Arabia
70

Appendix

1960s
• Industrial Policies • STI Policies

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


71

Appendix

1970s

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


72

Appendix

1980s

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


73

Appendix

1990s

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


74

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