T2S Conference 2006

Policy and Networking: an RIS in Korea

Yu Jin Jung(yjung4@gmu.edu)

School of Public PolicyGeorge Mason University

Yu Jin Jung

T2S Conference 2006

Overview

1. Introduction 1. Introduction

2. Definition: RIS 2. Definition: RIS

3. Korean RIS: the DSP 3. Korean RIS: the DSP

4. Policies from 1998 to 2002 4. Policies from 1998 to 2002

5. Networking Pattern Analysis 5. Networking Pattern Analysis

6. From the DSP to the DI 6. From the DSP to the DI

7. Conclusion 7. Conclusion

Yu Jin Jung

T2S Conference 2006

Introduction

Purposes of the study: Analyzing the relationship between policies and the regional networking patterns

– Can we call the Daedeok Science Park (before July 2005) as an RIS case? If we can, what type of RIS is it?

– What were the governmental policies affecting public research institutes in the era of DSP (from 1998 to 2002)?

– During the DSP era, were all networking patterns between businesses and research institutes the same or not?

Yu Jin Jung

T2S Conference 2006

Definition: RIS

Regional Innovation System (RIS)

– Innovation system explains innovation processes through the interaction between institutional and organizational elements (systematic perspective).

– Concept of RIS was started from NIS.

– “An RIS consists of interacting knowledge generation and exploitation sub-systems linked to global, national and other regional systems for commercializing new knowledge (Cooke and others, 2004).”

– Two kinds of subsystems: production system and institutional system

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Definition: RIS (continued)An RIS is:

AnotherRIS

Universities

ResearchInstitutes

Firms

Governments& Others

AnotherRIS

Innovation

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Korean RIS: the DSP

Daedeok Science Park (DSP)

– In 1970s, the DSP was built by the central government in Daejeon as the first region for balanced national development and regional economy development as well as R&D, human resources and information interchange, and cooperation research within the country.

– However, because of changed government strategy focusing on NIS or RIS, the DSP had changed from the research park to the RIS with newly emerging high-tech firms.

Yu Jin Jung

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Within the DSP

Identification of Innovation actors

Identification of Innovation actors

Existence of interactive technology

Innovation

Existence of interactive technology

Innovation

Innovation

Patent Status (2005)-domestic: 22,625

-international: 5,935

23,558 research personnel (in 2005)63 research institutes, 6 education institutes,

152 Venture companies

Networking possibilitiesETRI Venture Business Association,

Daedeok 21st, and regional cooperation R&D centers

Formation of networkingAmong actors and infra

Formation of networkingAmong actors and infra

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Policies for the PRIs (1998-2002)

Governmental Policies affecting the Public Research Institutes in the DSP: from 1998 to 2002

– Almost all R&D projects were assigned, funded, and managed by the National R&D Initiative.

– Products, results, and technologies are patented and commercialized through the follow-up research or the cooperative efforts with private sector.

– Some PRIs earned profits from their business support services (e.g. technology assessment, chemical analysis, and reliability evaluation)

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Networking Pattern Analysis(1998-2002)

Methodology

– Comparison Between the ETRI and the KRICT Electronics & Telecommunications Research Institute

(ETRI) and the telecommunication companies in the DSP

Korea Research Institute of Chemical Technology (KRICT) and the chemical companies in the DSP

– Log function comparison in spin-off, information / equipments provision, technology guidance and consultation, loyalty contracts, loyalty contracts (amounts), technology transfer, and financing

– Based on the annual performance reports of the two institutes

– Interview Results with the researchers in the two PRIs

Yu Jin Jung

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Networking Pattern Analysis(1998-2002)

Comparison– ETRI vs. KRICT (in the telecommunication

industry and in the chemical industry)

1

10

100

1000

10000

100000spin-off

providing information

providing equipments

technology guidance and consultation

loyalty contracts

loyalty contracts ($)

technology transfer

cooperatative financing

19981999200020012002

0.1

1

10

100

1000

10000

100000spin- off

providing information

providing equipments

technology guidance and consultation

loyalty contracts

loyalty contracts ($)

technology transfer

cooperatative financing

19981999200020012002

<ETRI’s network> <KRICT’s network>

Yu Jin Jung

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Networking Pattern Analysis(1998-2002)

Findings (1)

– Both PRIs’ patterns are similar annually.– Each institute’s networking

ETRI– overall statistics were growing– shows balanced networking methods

KRICT– overall statistics were growing (but not clear)– more focused on facilities and equipments

provision (shows limited networking patterns)

Yu Jin Jung

T2S Conference 2006

Networking Pattern Analysis(1998-2002)

Findings (2)– Networking patterns are closely related to

the characteristics of the industries. Telecommunication industry

– market-oriented (short-term production cycle), small-size tech units, and very sensitive to the national economy

Chemical industry– KRICT is mainly providing public services to

SMEs (for the public purposes)– dangerous and needed longer time to be

commercialized (long-term production cycle)

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From the DSP to the DI (since July 2005)

In the era of the DI

– Daedeok R&D Special Zone Law (Nov. 2004)– Declaration of the Daedeok Innopolis (Jul.

2005)– Based on the law, the DI has received full

support from all levels of the government.– “Paradigm shift”

All regulations and institutions affecting the DSP have been changed

– Master Plan for the DI: four purposes, twelve action plans

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In the DI Master Plan

4 Purposes 12 Activities (Action Plans)

Commercialization of Research

Results

Making Joint Technology Transfer ForumsSupporting Research Centers & BusinessDiscounting Tech Assessment, Establishing Commercialization FundProviding Patent-related InformationResearching On-demand TechnologiesEstablishing Tech-Transfer IMSTechnology Export MarketingStart-up Business ConsultingProviding Meeting Places (Build Networks)Supporting International ExhibitionsAnalyzing Marketing Status & Biz DemandOrganizing/Managing the DI Investment Association

Business Infra Development,

Closer Connection with other regions

PerformanceImprovement

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Conclusion

Impacts of governmental supports to the two PRIs’ technology innovation were presented.

Even in the same RIS, individual actor shows different networking patterns based on each industry’s characteristics.

To promote innovation and active networking, the government should consider industrial attributes.

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T2S Conference 2006

In the Future

Follow-up studies are required.– i.e. the implementation of DI plan and

its impacts on the same PRIs

Diversified research about the relationship between PRIs and firms in all industries should be done.

T2S Conference 2006

Questions?