Networking between Academia, Public Research Institutes and Industry ---Korean Experiences “ Global Summit of Innovation Economy Creator ” Prof. Se-Jung Oh President, Institute for Basic Science (Current) President, National Research Foundation of Korea (Previous) Professor of Physics, Seoul National University, Republic of Korea

Miracle of Korean Economy GNI per capita of Korea Year 1953: $ 67/ yr was one of the poorest countries in the world Year 2006: $ 18,372 & Year 2010: $ 20,753 [ GNI per capita (1953 ~ 2008), nominal US $ ] Asian Currency Crisis Source : The Bank of Korea, http://ecos.bok.or.kr

Korean National Innovation System - Input R&D Expenditure and Number of Researchers 1969 1980 1990 2000 2010 R&D expenditure (B won) 9.8 211.7 3,210.5 13,848.5 43,854.8 - Public 7.2 (73%) 105.5 (50%) 510.8 (16%) 3,816.9 (28%) 12,270.2 - Private 1.8 (18%) 102.4 (48%) 2,698.9 (84%) 10,023.4 (72%) 31,489.6 - Foreign 0.8 (8%) 3.8 (2%) (0%) 8.2 95.0 Number of researchers (FTE) 5,337 18,434 70,503 159,973 345,912 - Government Research Institutes (GRI’s) 2,413 (45%) 4,598 (25%) 10,434 (15%) 13,913 (9%) 26,235 - University 2,142 (40%) 8,695 (47%) 21,332 (30%) 51,727 (32%) 93,509 (27%) - Private Industry 782 5,141 38,737 (55%) 94,333 (59%) 226,168 (65%)

Progress of Korean National Innovation System Stage 1960s ~ 1970s 1980s 1990s 2000 ~ 2010 Per Capita GNP $82 ~ $1,676 $1,645 ~ $ 5,418 $6,417 ~ $9,438 $10,804 ~ $20,753 Major Industry Agriculture and Labor-intensive industry (Textile, Shoes, etc) heavy industry (Steel, Auto, Chemicals ,etc) Electronic and IT products (Electric Appliances, Semiconductor etc) IT products and others (Semiconductor, LCD, Auto, etc) R & D Focus Imitation of mature foreign technologies Imitation of mature, advanced foreign technologies Expansion of public R&D Development of growth engine technologies Domestic R & D Situation Inadequacy of university & industry research Reliance on GRI’s Expansion of industry & university research Foundation of industry-led system Expansion of university research Government Policy on R & D and Human Resource Development Established KIST (1966) and other GRI’s Established KAIS (1973) Expansion of University System Rapid growth of Graduate Schools Emphasis on the Quality of Graduate Education and Research Globalization of University Foster Top-quality Research Univ. HRD Policy at Doctorate Level Import from foreign countries Import as well as Domestic Training Post-doc Training of Domestic Ph.D’s in foreign countries Assimilation in the Global Market

Government Research Institutes (GRI’s) Triple Helix Model Tri-Lateral networks and Hybrid oranization Academia Public Research Institute Industry Three Major Innovation System Actors in Korea (as of 2010)   R&D Expenditure (B Won) No. of Researchers (total FTE)) (Ph.D level) University 4,745 (11%) 93,509 (27%) 53,947 (66%) Government Research Institutes (GRI’s) 6,306 (14%) 26,235 (8%) 12,818 (16%) Private Industry 32,803 (75%) 226,168 (65%) 14,677 (18%)

Policies to Facilitate Networking between Innovation System Actors (1) Manpower Exchange /Flow Joint Appointments between University and GRI’s or Private Industry - A special law was passed last year to allow good scientists/engineers to hold dual appointments in University, Government Research Institutes and Private Industry A professor can have an extended leave-of-absence when he/she starts a venture company - Usually professors in the university are allowed to have leave-of-absence for one year after 7 years of active service, but when he/she starts a venture company he/she can have the leave-of-absence for an extended period of time. (up to 5 years depending on the University) Researchers in Government Research Institutes can spend an extended period of time at private industries when they carry out joint research projects. - In some cases, GRI’s support staying expenses of their researchers in private companies when the company is small or medium size.

(2) Encourage Joint Research Activities between University and Private Industry Some government research projects, especially on applied topics, require participation of private industry even when the Principal Investigator belongs to University or Government Research Institutes. - The participating industry can share the government project budget during the joint research. However, when the company makes a profit later on by applying the results of this joint project, they are required to pay back their research expenditure. Special tax incentive is given to the industry when they carry out the joint research project with university - Up to 50% of research expenditure can be deducted from the tax of the company

(3) Trust Building between University, Government Research Institutes and Industry A special council is established to discuss matters of mutual interest between university, government research institutes and private industry - Representatives of university, public research institutes, and private industry meet regularly along with government officials to discuss matters of mutual interest. TLO’s (Technology Licensing Offices) are established in universities to facilitate diffusion of university-invented technology to private industry - Government supports the establishment and operating budget of university TLO’s