T2S Conference 2006 Policy and Networking: an RIS in Korea Yu Jin Jung School of Public Policy George Mason University

Yu Jin Jung T2S Conference 2006 Overview 1. Introduction 2. Definition: RIS 3. Korean RIS: the DSP 4. Policies from 1998 to Networking Pattern Analysis 6. From the DSP to the DI 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

Yu Jin Jung T2S Conference 2006 Definition: RIS (continued) An RIS is: Another RIS Universities Research Institutes Firms Governments & Others Another RIS Innovation

Yu Jin Jung T2S Conference 2006 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 T2S Conference 2006 Within the DSP Identification of Innovation actors Existence of interactive technology 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 possibilities ETRI Venture Business Association, Daedeok 21 st, and regional cooperation R&D centers Formation of networking Among actors and infra

Yu Jin Jung T2S Conference 2006 Policies for the PRIs ( ) 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)

Yu Jin Jung T2S Conference 2006 Networking Pattern Analysis( ) 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 T2S Conference 2006 Networking Pattern Analysis( ) Comparison – ETRI vs. KRICT (in the telecommunication industry and in the chemical industry)

Yu Jin Jung T2S Conference 2006 Networking Pattern Analysis( ) 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( ) 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)

Yu Jin Jung T2S Conference 2006 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

Yu Jin Jung T2S Conference 2006 In the DI Master Plan 4 Purposes12 Activities (Action Plans) Commercialization of Research Results  Making Joint Technology Transfer Forums  Supporting Research Centers & Business  Discounting Tech Assessment, Establishing Commercialization Fund  Providing Patent-related Information  Researching On-demand Technologies  Establishing Tech-Transfer IMS  Technology Export Marketing  Start-up Business Consulting  Providing Meeting Places (Build Networks)  Supporting International Exhibitions  Analyzing Marketing Status & Biz Demand  Organizing/Managing the DI Investment Association Business Infra Development, Closer Connection with other regions Performance Improvement

Yu Jin Jung T2S Conference 2006 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.

Yu Jin Jung 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?