Korean Global STI Strategy
and
Capacity Building for Regional
Innovation in LAC Countries
Presented at
Korea-Brazil Joint Seminar on Education, Science and Technology
Porto Alegre, Brazil
October 19, 2011
Yongsuk Jang, Ph.D.
Research Fellow
[email protected]
Contents
• Korean Global STI Strategy
• Capacity Building for Regional
Innovation in LAC Countries: A
Concept Proposal to IADB
Contents
• Korean Global STI Strategy
• Capacity Building for Regional
Innovation in LAC Countries: A Concept
Proposal to IADB
Republic of Korea (South)
2nd Poorest
Country in 1945
11th Largest
Economy in 2010
Total R&D Investment Growth
Total R&D Investment
3.37% (3rd)
2.48%
31,290(7th)
0.25%
12,810
4
1963
Total R&D Investment (Million $)
1997
2008
Ratio of Total R&D to GDP
Public R&D Investment Growth
Public R&D Investment
12.3
3.0
0.002
1963
1997
Government’s R&D Budget (Trillion KRW)
2009
Trend of Public vs. Private R&D Investment
100%
90%
80%
70%
Private Share, %
60%
50%
40%
Gov. Share, %
30%
20%
10%
2004
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
1978
1976
1974
1972
1970
1968
1966
1964
0%
Major S&T Achievements
International Patents
Science & Technology Articles
7,908 6,295
(4th) (4th)
35,569
(12th)
7,870
(18th)
4
1,891
(53th)
10 30
1981
1997
2008
288
1984
Number of Articles (Ranking)
1997
No. of PCT Applications
2008
No. of US Granted Patents
Science & Technology Competitiveness (IMD)
3th
2th
14th
세계
순위
12th
14th
21th
5th
7th
10th
14th
14th
17th
24th
2002
6th
13th
17th
2001
6th
8th
2003
Science Competitiveness
2004
2005
2006
Technology Competitiveness
2007
2008
2009
Korean Evolution and Roles of STI Policy
Period
1960s
1970s
1980s
1990s
2000s
2010~
Era
ExportOriented
Export-led
Economic
Liberalization
Democrat.
Advancement
Global
Leading
Focused
Industries
Light
Industries
Heavy
Industries
Assembly &
Processing
Industries
ICT
Knowledge
Intensive
Industries
Knowl.
Service/New
Converging/
Green Ind.
Compet.
Factor
Cheap Labor
Skilled Labor
Capital
Investment
Technologies
S&T
Innovation
Advanced S&T
Innovation
Demanding
S&T HR
Skilled HR
Technical HR
Higher S&E
High Calibre
S&E
Creative S&E
Creative &
Converging
S&E
Demanding
Tech.
Plant Mgt.
Facility M&O
Mfg.
Core Tech.
Endogenous
Tech.
Source Tech.
S&T Policy
Turn-key
Capital
Import/ Tech.
Learning
Internalizing
Imported
Tech./
Reverse Eng.
Modify
Imported
Tech./
Develop
Domestic Tech.
Advancing
Tech. Catchup/ Large Gov.
R&D Prog.
Focus on
endogenous
tech./
Systemize
S&T Prog.
Globalize
S&T/ Focus on
Convergence
Paradigm
Change
Imitation
Catching-Up
Innovation
Endogenous
Innovation
Strategic Global STI Networking towards Economic Growth
Economic Growth
Economic
Policy
Industrial
Policy
S&T Policy
Strategic Global STI Networking
Evolution of Korean Global Networking for Innovation
ODA Recipient
ODA Donor
Science
for
Diplomacy
1945 1960
1970
1980
1990
For
Technology Acquisition
For
S&T Capacity Building
Imitation
2000
2010
For
Global S&T Player
For
Technology Catch-Up
Catching-Up
Innovation
Join OECD/DAC
&
Seoul G20 Summit
Endogenous
Innovation
Why Strategic Global STI Networking in Korea?
• Given Conditions
• Poor Resource Bases
• Small Domestic Market
• Lacking Capital and Technology
• Korean Development Strategy
• No other Options but looking outward for Capital,
Technology and Market
• Utilizing the Opportunities International Linkages
Offer
For S&T Capacity Building
• ODA Funds from US, UNESCO, UNDP, etc.
• Essential to the survival of Korea as an independent nation
• Critical in building capacity for development
• US technical assistance in the early stage was mainly
used for HRD and institution building
• KIST: Korea Institute of Science and Technology (1966)
• KAIST: Korea Advanced Institute of S&T (1971)
• ODA Programs of UN Agencies 1960-70s
• Bilateral Aids from UK, Germany, Japan, etc.
• Repatriation of oversea scientists and engineers
For Technology Acquisition
• Outward-looking Development Strategy for technology
required for industrialization
• Private industries responded to such a policy in a
diverse way, depending on the nature of the industries:
• Light industries: Learning through OEM (later progressed
into ODM, OBM…)
• Chemical industries: Learning by technical training
based on turn-key base importation (ex, POSCO)
• Machineries and Electronic industries: Learning by
Formal Licensing (ex, LG)
• More rely on informal channels, which required much
higher technological capabilities, which has been possible
owing to rich pool of well-educated HR
For Technology Catching-Up
• Increasingly reluctant to transfer new technologies to
potential competitor, Korea
• Shift in S&T strategy from learning to developing
• Loosened the regulation of direct foreign investment
and liberalized foreign licensing
• Launched the National R&D Program in 1982
• Took various measures to promote and facilitate private
industrial R&D
• Launch International Joint R&D program in 1985
• Moving toward indigenous R&D (more than 20,000
industrial labs)
• Increasing new venture firms
For Global S&T Player
• Expansion of international cooperative R&D
• Offshore R&D lab
• Supports for overseas R&D activities of private industries
• Expansion of international mutual R&D funds
• Attract R&D direct foreign investment
• Globalization of the R&D system
• Strengthen cooperation with developing countries
• Expansion of S&T ODA
• Sharing S&T development experiences
• Launching large scale international R&D program
• Global Frontier R&D Program: launched in 2010, $20
million per year for ten years…
Contents
• Korean Global STI Strategy
• Capacity Building for
Regional Innovation in LAC
Countries: A Concept Proposal
to IADB
Overview
• Purpose
• Capacity Building (Enhancing) for Regional Innovation in Latin
American and Caribbean (LAC) Countries
• Focused Activities
• Coaching Local Champions to Develop, Implement, and
Evaluate Regional Innovation Policies and Programs
• Establish a LAC Regional Innovation Network
• Program Duration (10 years in total)
• Pilot Phase: 2012-13
• Diffusion Phase: 2014-19
• Evaluation Phase: 2020-21
• Program Budget
• Seed Fund from IADB
• Other Funds from Local, National, and Global Sources
Background
• Why Regional Innovation in LAC Countries?
•
•
•
•
•
•
•
Slow growth
Unlinked research output and commercialization
Lack of entrepreneurship
Lack of managerial capacity
Globally isolated market: Limited market size
Lack of coherent strategy
Lack of central leadership
• Regional Innovation Needs;
• Physical infrastructure
• Human capital i.e. trained policy analysts & researchers
• Regional policy plans in link with National and Global Strategies
• Analysis of framework conditions
• Resource mobilization at regional level
• Mobilization of political, financial, personnel and social support
i.e. policy schemes
Purpose and Objectives
• Establish regional think tanks in selected LAC regions
• Develop specific programs for regional innovation
• Monitor and evaluate all such activities, and
• Create a LAC Regional Innovation Network (LAC-RIN)
Self-Sustaining Capacity for
Regional Innovation
Methodologies
• Total Package Assistance
• Hardware + Software + Strategy Assistance in a Package
• Interactive Participatory Learning (Coaching)
• Active participation by local stakeholders
• ‘Hands-on’ programs
• ‘Learn by doing’ with guidance of international advisory experts
• Knowledge Sharing Program (KSP)
• Lessons from Korean rapid economic growth
• Benchmarking practices & strategies
• Economic, industrial, and S&T policies
• Adjusted for local framework conditions including geographical,
economic, political, social, cultural and techno-economic backgrounds
• Diffusion-Hub Strategy
•
•
•
•
Pilot program establishes model
Key personnel in pilot region become experts in subsequent stages
Later region key personnel participation in earlier stages
Collective and cross learning through LAC-RIN
Conceptual Framework for Total Package Assistance
Strategy
- Feasibility Study
- Institutional Building (incl. Laws)
- S&T Basic Plan
- HRD Basic Plan
- Regional Dev.
- Monitoring & Evaluation
Hardware
- Research Institutes
- S&T Universities
- Lab. Install
- S&T Facilities
- S&T Equipments
- Maintenance
Software
Science,
Technology, &
Innovation
Strategy
- S&E Higher Ed.
- Technical/Research Training
- S&E Dispatch/ Hosting
- Teacher Training
- Facility Mgt.
- R&D Activities
Capacity
Building for
Self-sustaining
Dev.
S&T
Infrastructure
Building
S&T Human
Resources Dev.
Program Structure
LAC Regional
Innovation
Network
International
Advisory
Experts Group
IADB
Diffuse to
Other LAC Regions
Main Activities
STEPI
Team
RIS
Review
ThinkTank
Strategies
Programs
Coaching
Local
Authorities
Local
Stakeholder
Other Funding
Sources
Regional
Innovation
Program Activities I
• Designating Core Local Champions
• Lead establishment of local think tanks
• One senior expert and a couple of junior practitioners
• Recommended by local authorities
• Lead local activities
• Act as advocates of program
• Initial Review of Regional Innovation System
• Diagnose the current framework conditions of target region
• STEPI team to review regional innovation system with local
authorities and international advisory experts
• Form consensus of local authorities & stakeholders
• International Advisory Experts Group
• Consists of no more than 10 experts
• Advises on overall program directions, tasks and activities
• Participates in major reviews and evaluations
• Annual workshops convened to review and integrate advices
Program Activities II
• Brainstorming Workshops
• Main communication, learning and coaching platform
• Convened as Needed
• Training Programs
• Annual intensive 1-2 week program either local or abroad
• Convey state-of-the-art theories, methodologies, best
practices and experiences in an organized manner
• Long-term Visiting Experts
• Senior-level distinguished scholars interact with local
practitioners by staying longer term (2-6 months)
• LAC Regional Innovation Network (LAC-RIN)
• Collective and Cross Learning
• Portal to Diffuse regional best practices
• Link LAC regional innovation to global dimension
Program Operation I
• Build self-sustaining capacities of local champions
• Analyze local framework conditions
• Identify regionally specific challenges
• Establish think tanks
• Develop Strategies and Programs
• Identify funding sources
• Program Management
• STEPI to manage the overall program in collaboration with
IADB and local entities
• Dispatch consulting experts from its extensive network
• Conduct initial RIS reviews and monitoring and evaluations
• Assist the local practitioners with activities
• Organize all meeting, workshops and training programs
• Provide essential administrative support
• Utilize Korean experiences and practices (KSP)
Program Operation II
• Team of local practitioners to:
– Analyze framework conditions particular to the region
– Identify challenges for promoting regional innovation
– Develop directions and policies for addressing challenges
• Convene brainstorm workshops
• Develop strategies and programs in consultation with
STEPI and international advisory expert groups and
gain support from local authorities and stakeholders
– Conferences and communication efforts for building
consensus and enhancing public awareness
• Provide a small seed fund for developed regional
innovation programs
LAC Regional Innovation Network (LAC-RIN)
• Incubate a network among LAC regions
– Serve as an effective link from regional innovation to global
dimensions
• Aims to diffuse the model established by proposed
program to wider range of LAC regions
• Chain-linked network to promote cross learning among
– Representatives from the next focus region to be invited to
observe program activities and processes
– Prepare for upcoming activities more efficiently
– Core practitioners who complete the program to participate
as consulting experts in the following round
Program Schedule
• Projected to last for 10 years from 2012 to 2021
•Divided into three phases
• Pilot Phase (2012 – 2013)
• Developing a successful case in a selected LAC region
• Diffusion Phase (2014 – 2019)
• Diffusing the successful model developed in the Pilot
Phase into other LAC regions
• Review Phase (2020 – 2021)
• Concluding with overall assessments on the whole
program in light of self-sustainability toward regional
innovation
• Proposed program to last two years in each region
• First three months in preparation period
• Work for the proposed program on a full-time basis
• Continue to lead local think tank and other LAC regions after
program
Overall Program Schedule
Pilot Phase
Phases
2012 2013
Year
Region A
Region B
Region C
Region D
Region E
Region F
Region G
LAC-RIN
Review Phase
Diffusion Phase
2014
2015
2016
2017
2018
2019
2020
2021
Selection Criteria for Pilot Model
• A region with strong willingness to support
• Strong willingness of local authority to support the proposed
program
• Strong willingness of national government to support the
proposed program, as well
• A region with considerable opportunities to promote
regional innovation by improving strategic capabilities
• Embody typical strengths and weaknesses of the LAC regions
• But with potential local resources (e.g., people, capital,
infrastructure, etc.)
• A region with high potential to diffuse its success to
other LAC regions
• Can play the leading role in diffusing its success model
• Several regions (possibly from Brazil, Chile, and Mexico) can
be nominated
Regional Program Schedule
Activities
Preparation
Designating Champions
NIS Review
Training Program
Think-Tank
Strategies
Programs
Int'l Advisory Experts WS
Brainstorming WS
LAC-RIN
Monitoring
Evaluation
Annual Reports
Months
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Deliverables
• Annual Reports
• Include all records of major activities and interactions such
as RIS reviews, proposal for regional think tank establishments,
the minutes of brainstorming workshops, the proceedings of
international advisory expert group workshops, analytical
reports and proposals to local authorities, and various
background analytical reports produced by local team
• Regional Reports
• To be produced after completion of each regional program
• Contains comprehensive in-depth evaluation of the regional
program conducted for two years on a focused region
• Evaluates outputs and impacts of the regional program
• Review Report
• To be produced by the end of the Review Phase
• Extensively reviews regional programs and analyzes overall
impacts of the whole program on self-sustainable capacities
Budget
• IADB Seed Fund ($2 mil./year)
• Cover primary costs for direct activities
• Greater share funded locally to improve self-sustainability
+
• Diverse other funding sources
• Local sources: state or city government budgets
• National sources: CONACYT FONDO, special trust funds, etc.
• International sources: OAS, OECD, UNDP, etc.
• For LDCs: diverse Korean ODA funding sources including from MEST
(Ministry of Education, Science and Technology of Korea), KOICA (Korea
International Cooperation Agency), EDCF (Economic Development
Cooperation Fund), etc.
Thank You!
For Further Comments & Questions;
Yongsuk Jang
[email protected]