Transcript Technology Innovation

S&T Policy Driving System
As an Important Tool for
Korea’s National Innovation
May 2011
President
Prof. June Seung Lee, Ph.D
1
Contents
I
Science & Technology Development in Korea
II
Challenges : What should we do ?
III
New National R&D Strategy & Policy
IV
What should we learn?
2
I. Science & Technology Development in Korea
3
Changes of S&T Environments
1960s
Policy
trend
S&T
policy
direction
Change in
focusing
industry
1970s
1980s
Building R&D
infrastructure
Promoting R&D
Established GRIs
(e.g. KIST)
Established MOST in
1967
Built Daedeok Science
Town in 1974
Enforcing the national
R&D programs
Promoting the university
-based researches
(e.g. SRC, ERC)
Primary
goods
2000s
Technologyoriented policy
Industryoriented policy
Light
industry
goods
1990s
Light &
heavy
industry
goods
Enhancing technology
innovation
Increasing efficiency of
R&D investment
(coordination of S&Trelated policies)
Planning Total Roadmap
Heavy
industry
goods &
electronic
products
Electronic &
transport
products
4
S&T Development : Quantitative Growth
Total R&D Investment
3.57% )
Total Number of Researchers
323,175
2.48%
29,703 (7th)
0.25%
138,438
2,962
12,810
4
1963
1997
Total R&D Expenses
(Mil. USD))
2009
1964
Percentage (%) of GDP
Thesis and Patent
1997
2009
Total Number of Researchers
Industrial Technology Level
38,651(11th)
76.5
18,791(14th)
7,908(4th, ’08)
3,944
70.7
39.9
236(53th)
17
1981
U.S. Patent
1997
2009
Number of SCI Theses
1992
1999
2010
Industrial Technology Level
(World’s best = 100)
5
Achievements led by S&T
Aggressive investment through selection and concentration
in the initial stage of industrialization
’70s
Gov.-led fundamental
establishment
Ship
building
 Ship research center
establishment
 HR development & supply
from university
’80s
Gov.-led intensive
development
Semiconductor
 4M/16M DRAM
Early ’90s
Gov.-led R&D
Mobile
Phone
 CDMA technology
 development
’80s~’90s
Continuous private
R&D investment
’00s
World’s No.1
 Extension of private research
 Market
institutes
 Security of manufacturing tech & quality
’90s
Private initiative R&D
 64M/256M DRAM
Mid ’90s
Market Extension
 Support for market
creation & extension
share of 40.4% (’06)
’00s
World’s No.3
 Market share of 10.2%(’06)
’00s
World’s No.3
 Market share of 17.8%(’06)
6
II. Challenges : What should we do ?
7
Innovation–led Growth
21st Century’s knowledge-based economy
→ The era of fierce global competition based on S&T strength
Technology innovation is a new growth engine
: leap over the growth limit through factor input
’70s
Labor,
Capital
(79.2%)
Technology Change in
contribution
Innovation
factors
To economic
(20.8%)
growth
’90s
Labor,
Capital
(63.9%)
Technology
Innovation
(36.1%)
Early ’00s
Labor,
Capital
(58.5%)
Technology
Innovation
(41.5%)
STEPI(Science & Technology Policy Institute), 2007
Calls for swift transition to an innovation-led growth model
8
Challenges : What should we do ?
1
Increasing the Efficiency of R&D Investment
Growth rate of economic contribution index against 1%
increase of R&D input index
 Developed country : 0.52% ,  Korea 0.37%
Decrease in contribution of R&D to economic growth
45
40
35
30
%
25
U .S .
Ko rea
20
15
10
5
0
C o ntributio n o f TFP to
G D P G ro w th
C o ntributio n o f R &D to
G D P G ro w th
9
Challenges : What should we do ?
2
Portfolio of National R&D Towards Innovation - led Model
Present Situation (’09,%)
Future targets
Research Stage
Basic (18.1), Applied (20.0), Development (61.9)
Increase of basic research
Research entity
Companies(74.3), Research institute (14.7),
University & college(11.1)
Increase of university research
IT (32.6), NT(12.1), ET(9.1), BT(7.9), ST(1.3), CT(0.9)
Mitigation of imbalanced investment on IT
Future growth engine related R&D
National capital region(64.1), Daejeon(11.5), etc(24.4)
Strengthening of local R&D
Technology
Region
10
Challenges : What should we do ?
3
Nurturing Human Resource (HRD)
Mismatch between demand & supply
-Shortage
of high quality manpower is expected to continue until 2015
: Shortage of 4,500 Ph.Ds
Brain drain index of IMD (2006):
 U.S : 7.84  Finland : 7.59  Japan : 6.75  China : 3.22  Korea : 4.91
* scale of 0 to 10: 0 indicates a strongest tendency for highly-educated people to leave their countries
HRD
Fostering creative core manpower
Selection & concentration
R&D-oriented university
Strengthening of network
Brain Circulation
11
Challenges : What should we do ?
4
Active Globalization of S&T
Diversity of Innovation
Innovation
Institution
Market
Environment
Education
& Training
S&T Globalization
Environment for
Innovative Investment
Source: STEPI (2006)
Korea’s overall capacity for technological innovation is relatively high
while the level of S&T globalization is the lowest among OECD countries
12
III. New National R&D Strategy & Policy
13
Directions of National Innovation Strategy
Four Major Directions
Imitation
Mode
Closed
Mode
(1) Efficient Allocation and Utilization of R&D resources
(Selection and Concentration)
(2) Strengthening of innovation capabilities
(Human resources)
(3) Collaboration among industry, academia, and GRIs
Innovation
Mode
Open &
Networked
Mode
(4) Openness
14
Restructuring S&T Administration System
Before Reforms
National Science and
Technology Council
Ministry of
Science and
Technology
Ministry of
Commerce,
Industry and
Energy
Ministry of
Information and
Communications
Ministry of
Education
Other relevant
ministries
S&T Policy
Industry
Policy
I&C Policy
Education &
HR Policy
Related
affairs
Policy
Policy
Policy
Policy
Policy
Execution
Execution
Execution
Execution
Execution
Evaluation
Evaluation
Evaluation
Evaluation
Evaluation
R&D Programs
Industries
S&T / Industry Policy
Universities
Human Resource Cultivation
Public research institutes
15
1st Restructuring S&T Administration System(2004)
Planning /
Coordination / Evaluation
Ministry of
Commerce,
Industry and
Energy
Ministry of
Information and
Communications
Industry
Policy
IT Policy
Policy
Policy
Execution
Execution
National Science and
Technology Council
Ministry of Science
and Technology
OSTI
- Overall coordination,
planning, evaluation of
S&T-related policies and
R&D programs,
- R&D budget allocation
Planning /
Coordination / Evaluation
Ministry of
Education
Other relevant
ministries
Education &
HR Policy
Related
affairs
Policy
Policy
Execution
Execution
Tentatively execute
affairs not belonging to
other ministries
Industries
Infrastructure for
S&T innovation
Universities/
Public research institutes
16
2nd Restructuring S&T Administration System(2008)
Planning / prioritization
Coordination / Pre-review
National Science and
Technology Council
Ministry of Education,
Science
and Technology
Ministry of
Knowledge
Economy
Ministry of
Environment
Industry
Policy
ET Policy
Policy
Policy
Policy
Execution
Execution
Execution
- Planning, Priority-setting
Education
of National
R&D &
HRbudget
Policy
- Pre-R&D
Review
Other relevant
ministries
Related
affairs
Ministry of Strategy
and Finance
- Evaluation of
R&D programs,
- R&D budget allocation
Evaluation
Tentatively execute
affairs not belonging to
other ministries
Industries
Infrastructure for
S&T innovation
Universities/
Public research institutes
17
3rd Restructuring S&T Administration System(2011)
National Science and
Control Tower Technology Council
- Policy Planning
- Portfolio setting
- R&D Coordination
Ministry of
Knowledge
Economy
Ministry of
Environment
Ministry of
Education
S&T
Industry
Growth engine
Environment
Green Tech.
HR
Space
Nuclear
Execution
Execution
Industries
Universities
Execution
Whole Process of NIS
- Strategy and Priority
- R&D budget preview
- Evaluation of R&D programs
Other relevant
ministries
Ministry of Strategy
and Finance
Related
affairs
R&D Budget
allocation
Execution
Public research institutes
Integrated
National
Innovation
System
18
Directons of S&T Policy in LeeMyungBak Administration
『577 Initiative』 (2008~2012)
「577 Initiative」was established in order to systematically pursue the
science and technology policy of LeeMyungBak Administration.
1. Science and Technology shall open the doors to the future
“The new administration plans to turn Korea into a S&T power nation that will lead the
world with strong will to nurture science and technology.”
“We plan to expand gross domestic expenditure on R&D(GERD) from 3.2% of GDP in ’06
up to 5% by ’12.”
2. We will invest national R&D in strategic areas
“Government needs to support R&D areas such as basic science, fundamental
technology and large scale technologies(CLT) with long-term plans.”
“We will become a leading nation in the Green Market, which will reach market
size of 3,000 trillion Korean won(equivalent to about $ 2.5 trillion) by 2020, by increasing
R&D investment in green technology by more than doubled.”
19
577 Initiative in LeeMyungBak Administration (1/5)
Framework
Input
5%
Investment
Reach to 5% of GDP on GERD
Process
7 Major
Core Areas
① Key industrial tech.
② Emerging industries tech.
③ Knowledge-based service tech.
④ State-led tech.
⑤ National issues-related tech.
⑥ Global issues-related tech.
⑦ Basic & convergent tech.
① World-class human resources
② Basic & fundamental research
③ SMEs & Start-ups’ innovation
④ S&T Globalization
⑤ Regional innovation
⑥ S&T infrastructure
⑦ S&T Culture
Input
Performance
Becoming one of 7 major S&T powers in the world
20
577 Initiative in LeeMyungBak Administration (2/5)
Investment - Concentrate on 7 major areas
1. Key Industrial Technologies (Cash Cow)
Developing high value added technologies needed to sustain global
competitiveness of key manufacturing industries in Korea
2. Emerging Industrial Technologies (Green Ocean)
Developing IT-based convergent technologies that can create new industries
Developing emerging technologies in the areas of drug, health and medical
care for which market sizes are expected to expand in the future due to aging
society
3. Knowledge-based Service Technologies
(Knowledge Based S&T)
Developing knowledge-based service technologies such as S/W, cultural technology
and design, which as immense effects on the job creation
Developing knowledge-based technologies for the enhancement of industrial
productivity such as intelligent manufacturing system technology
21
577 Initiative in LeeMyungBak Administration (3/5)
4. State-led Technologies(Big Science)
Continuous development of technologies in the areas such as construction and
transportation, space & ocean, nuclear power and nuclear fusion for which private
sector’s investment is difficult although essential for national interest
5. National Issues-related Technologies(Risk Science)
Technological development in the area of current issues related to healthy life of
people including new types of disease such as mad cow disease and pathogenic
avian influenza, and food safety
R&D on current socio-economic issues including international price of oil that has
recently risen sharply, and component material associated with trading deficit with Japan
6. Global Issues-related Technologies(Mega Trend Science)
Technological development to cope with common issues of human kind such
as energy, climate change, environment and food, and to occupy vantage
point in the future market
7. Basic & Convergent Technologies
(National Platform Tech.)
22
577 Initiative in LeeMyungBak Administration (4/5)
Advancement of 7 major S&T system
1. Cultivation and Utilization of World-class Human Resources
2. Promotion of Basic, Fundamental Research
3. Support for SME’s and Start-ups’s Innovation
4. S&T Globalization
5. Enhancement Regional Innovation Capacity
6. Advancement of S&T Infrastructure
7. Spread of S&T Culture
23
577 Initiative in LeeMyungBak Administration (5/5)
Index of Performance
24
From Catch-up to Innovation
Advanced
Countries
Stagnation
of
growth
SemiAdvanced
Nations
’60
’70
’80
’90
’00~
23
25
Ⅳ. What should we learn ?
26
What should we learn ?
S&T leadership of the National CEO
The CEO (President)'s S&T-oriented mind is the key to the economic
development of a nation.
- Without strong support of the CEO, investment in S&T tends to be
excluded from priority areas since it is future-oriented and thus
takes a long term to harvest. (A long ROI period)
※ The former president Park's case (KIST),
Economy-embodied S&T
S&T must be developed in parallel with the nation's social and
economic development
- S&T should contribute to the increase of economic growth (TFP)
※ Innovation resides at the intersection of invention and insight :
leading to the creation social & economic value.
27
What should we learn ?
Selection & Concentration
- 1970s (light industry goods), 1980s (light & heavy industry goods),
1990s (heavy industry goods and electronic products),
2000s (Electronic & transport products and BT)
2010s(Green technology: Environment & Energy, BT etc)
Strengthening of basic research
- Basic research among total research by universities(’09)
· Korea(36.2%), U.S.A(74.5%, ’03)
- Basic research among total research by private enterprises(’09)
· Korea(13.8%), Japan(6.0%, ’03)
The ultimate key player of R&D should be the private sector.
- Supporting systems for encouraging the establishment of private
R&D centers
- Supporting systems for promoting investment by private enterprises
28
What should we learn ?
Effective S&T system
The S&T system must be operated effectively.
- Good coordination of the S&T-related policies
- Good linkage between evaluation and R&D budget
- Good chemistry among industry, academia, and public sector
Swim with “The world is flat”
- Korea accounts for only 3% of the total R&D expenditures of the
world. (U.S. about 40%). Utilizing overseas R&D resources through
global collaboration is the key to enhancing the efficiency of
domestic R&D investment.
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