Capacity Building for National/Regional Innovation in LAC Countries Presented at The Third Meeting of Ministers and High Authorities of Science and Technology of OAS Panama City, Panama November 17, 2011 Yongsuk Jang, Ph.D. Research Fellow

Korea's Economic Development, $67 (1953) $20,759 (2010) Source: The Bank of Korea : Per Capita GNP (current US$, 1975 base year) : Per Capita GNI (current US$, 2005 base year) 11 th Largest Economy 2 nd Poorest Country

Roles of STI Policy in Korean Development Period1960s1970s1980s1990s2000s2010~ EraExport- Oriented Export-ledEconomic Liberalization Democrat.AdvancementGlobal Leading Focused Industries Light Industries Heavy Industries Assembly & Processing Industries ICTKnowledge Intensive Industries Knowl. Service/New Converging/ Green Ind. Compet. Factor Cheap LaborSkilled LaborCapital Investment TechnologiesS&T Innovation Advanced S&T Innovation Demanding S&T HR Skilled HRTechnical HRHigher S&EHigh Caliber S&E Creative S&ECreative & Converging S&E Demanding Tech. Plant Mgt.Facility M&OMfg.Core Tech.Endogenous Tech. Source Tech. S&T PolicyTurn-key Capital Import/ Tech. Learning Internalizing Imported Tech./ Reverse Eng. Modify Imported Tech./ Develop Domestic Tech. Advancing Tech. Catch- up/ Large Gov. R&D Prog. Focus on endogenous tech./ Systemize S&T Prog. Globalize S&T/ Focus on Convergence Paradigm Change ImitationCatching-UpInnovation Endogenous Innovation

Evolution of Korean STI Policy 1982 Institutional Building Technology Catching-Up S&T Leadership Korea Institute of S&T (KIST) 1992 Korea Advanced Institute of Science (KAIS) National R&D Program (NRP) Ministry of S&T (MOST) Technology Development Promotion Act Industrial Generic Technology Development Program (IGTDP) Deputy Prime Minister of MOST (OSTI) Information and Communication R&D Program (ICRP) Highly Advanced National Project (HAN) 1st 5-Year Economic Plan Financial Crisis 2008 Current Admin. MEST & MKE

Industrial Shifts: Demands and Supplies Light Industries Heavy Industries Assembly & Processing Industries IT Industries New Growth Engines Demand Side Supply Side Self- Sustain Import- Subs. Import Protection Export- Orient Mfg. Capacity Industrial Seeds Open Market Higher Value- added Industrial Diversificat ion Import Tech. Tech. Capability Expand R&D Skilled HR Demand- oriented Innovation Endogeno us Tech. “Select and Focus”

Trends of Public vs. Private R&D Investment in Korea Source: MEST ( Focused on Market !

The Core of the Success = Capacity Building Always focused on Self-sustaining Capacity Building Learning, Absorbing and Internalizing Imported Tech. Now focusing on Endogenous Innovation Capacities Knowledge Sharing Foreign Aid helped Korean Development a lot Became the only Country transformed from ODA Recipient to Donor Country by joining the OECD/DAC in Nov Time to Share Rich Korean Experiences Korean Strategy to Share Knowledge Focus on Self-sustaining Capacity Building for Development “Teach Fishing rather than Give Fishes out” => STI Integrate the Korea’s Development Experiences As Part of Science Diplomacy The Core is Self-Sustaining Capacity Building

Science, Technology, & Innovation Strategy S&T Human Resources Dev. S&T Infrastructure Building Capacity Building for Self-sustaining Dev. - Feasibility Study - Institutional Building (incl. Laws) - S&T Basic Plan - HRD Basic Plan - Regional Dev. - Monitoring & Evaluation - S&E Higher Ed. - Technical/Research Training - S&E Dispatch/ Hosting - Teacher Training - Facility Mgt. - R&D Activities - Research Institutes - S&T Universities - Lab. Install - S&T Facilities - S&T Equipments - Maintenance Hardware Software Strategy Core Components of Self-sustaining Capacity Building

Establish regional think tanks in selected LAC regions Share Korean Experiences through Coaching Develop Specific Innovation Projects Create a LAC Innovation Network (LACIN) A Proposal to IADB Self-Sustaining Capacity for National/Regional Innovation

Program Structure Coaching

11 STEPI: A Global Think-Tank President Prime Minister NRCS The National Research Council for Economics, Humanities and Social Sciences KRCF Korea Research Council of Fundamental S&T (13 GRIs) MKE Ministry of Knowledge Economy MEST Ministry of Education, Science and Technology STEPI Science and Technology Policy Institute KOCI Korea Research Council for Industrial S&T (13 GRIs) A Government-sponsored Research Institute (GRI) for S&T Policy

Identifies policy issues to effectively deal with future challenges Conducts research and analyses on the issues pertaining to science, technology and innovation Provides government agencies with policy ideas and suggestions for the promotion of innovation Suggests strategic options in technology development for the government as well as industries Collaborates with Global and Local Partners for Better STI Strategies STEPI: Roles and functions

IADB’s New Guidelines for Technical Cooperation (TC) Require the Country and IDB’s Country Office to Prepare “Country Programming Document (CPD) with a list of activities So this proposal should be included in your Country’s CPD If interested; Acquire detailed information on this Proposal (A full Proposal is under development), if interested Contact your IDB corresponding line Ministry, normally Ministry of Finance or Planning Make sure them to include this proposal in your CPD Alternatively, Send me an official request and non-objection Letter signed by the IDB corresponding line Ministry, which will be accompanied with the submission of full proposal Korea will also Support IDB’s Korea Trust Fund (KTF) Other Funding Sources Next Steps

Thank You! For Further Comments & Questions; Yongsuk Jang