1. 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 jang@stepi.re.kr

2. Korean Global STI Strategy Capacity Building for Regional Innovation in LAC Countries: A Concept Proposal to IADB Contents

3. Korean Global STI Strategy Capacity Building for Regional Innovation in LAC Countries: A Concept Proposal to IADB Contents

4. 11 th Largest Economy in 2010 2 nd Poorest Country in 1945 Republic of Korea (South)

5. Total R&D Investment Growth 12,810 3.37% (3 rd ) 2.48% 0.25% 4 Total R&D Investment (Million $)Ratio of Total R&D to GDP 31,290(7 th ) Total R&D Investment 1963 1997 2008

6. Public R&D Investment Growth 3.0 0.002 12.3 Government’s R&D Budget (Trillion KRW) Public R&D Investment 1963 1997 2009

7. Trend of Public vs. Private R&D Investment

8. Major S&T Achievements

9. Korean Evolution and Roles of STI Policy 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 Calibre 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 ImitationCatching-UpInnovation Endogenous Innovation Paradigm Change

10. Economic Growth Economic Policy S&T Policy Industrial Policy Strategic Global STI Networking Strategic Global STI Networking towards Economic Growth

11. For Technology Catch-Up For Technology Acquisition 1990198019451970 2010 1960 2000 Science for Diplomacy Join OECD/DAC & Seoul G20 Summit ODA Recipient ODA Donor For Global S&T Player Evolution of Korean Global Networking for Innovation ImitationCatching-UpInnovation Endogenous Innovation For S&T Capacity Building

12. 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 Why Strategic Global STI Networking in Korea?

13. 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 S&T Capacity Building

14. 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 Acquisition

15. 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 Technology Catching-Up

16. 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… For Global S&T Player

17. Korean Global STI Strategy Capacity Building for Regional Innovation in LAC Countries: A Concept Proposal to IADB Contents

18. 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 Overview

19. 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

20. 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) Purpose and Objectives Self-Sustaining Capacity for Regional Innovation

21. 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

22. 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 Conceptual Framework for Total Package Assistance

23. Program Structure Coaching

24. 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

25. 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

26. 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)

27. 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 Program Operation II

28. 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 LAC Regional Innovation Network (LAC-RIN)

29. 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 Program Schedule

30. Overall Program Schedule

31. 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 Selection Criteria for Pilot Model

32. Regional Program Schedule

33. 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 Deliverables

34. 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. Budget +

35. Thank You! For Further Comments & Questions; Yongsuk Jang jang@stepi.re.kr