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Innovation & Technology in Korea an International Perspective

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Korean Science and Technology in an International Perspective

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Abstract

South Korea‘s remarkable growth during the last decades has been abundantly documented. Particularly in the 2000s, the South Korean economy transformed into a knowledge-based economy and developed an innovation-intensive industrial structure. Government initiatives, international trade as well as foreign direct investment played a significant role in upgrading Korea’s innovation and technology system. Thus, the knowledge revolution, together with increased globalization, presented significant opportunities for promoting economic and social development in Korea. The main objectives of this paper are to explain the development process behind Korea’s knowledge-based economy and to elaborate the strategies as follows: (1) facilitating an innovative R&D system; (2) upgrading information infrastructure; (3) implementing e-Government.

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Notes

  1. 1.

    A knowledge economy is one that uses knowledge as the key driving force. It is an economy in which knowledge is acquired, created, disseminated and used effectively to enhance economic development.

  2. 2.

    The four pillars are elaborated in various articles. This section is borrowed from “Korea as a Knowledge Economy,” published as Chap. 2 in the World Bank Institute Learning Resources Series’ Knowledge Economy.

  3. 3.

    Ibid.

  4. 4.

    Ibid.

  5. 5.

    MOST has been the main designer of Korea’s overall S&T policy; KIST has played the role of technological functionary in responding to industrial demands for rapid economic growth; and KAIS (later KAIST) first implemented the concept of the research-oriented university into the Korean higher education system.

  6. 6.

    In 2004, about 97% of documents were dealt with through the e-approval system in the government agencies, compared with only 21% in 1998.

  7. 7.

    Throughout the 1960s and 1970s, the Korean government was deeply involved in the economic development process, not only in drawing up development plans, but also in encouraging the private sector to achieve the goals set in the plans.

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Author information

Authors and Affiliations

  1. Korea Development Institute, Seoul, South Korea

    Ji Hong Kim

Authors
  1. Ji Hong Kim
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Correspondence to Ji Hong Kim .

Editor information

Editors and Affiliations

  1. , Economic Department, University Vienna, Vienna, 1010, Austria

    Jörg Mahlich

  2. Fak. Wirtschaftspolitik/, Ostasienwirtschaft, Universität Duisburg-Essen, Lotharstr. 65, Duisburg, 47048, Germany

    Werner Pascha

Appendix: Innovation

Appendix: Innovation

In the competitive environment and globalized era, speed and innovation are essential. As such, it has become crucial to derive additional value added from various means of product differentiation via innovative designs, effective marketing, efficient distribution, reputable brand names, etc. Thus, it is critical to be able to contribute productively to global value chains as well as generate entirely new ones. The key is not necessarily production, but innovation and high-value services.

figure a

Source: Tae Young SHIN

In light of the above, sustainable economic growth depends on developing successful strategies that involve the continual use and creation of knowledge at the core of the development process. In the pursuit of S&T capability, knowledge strategies also hinge critically on the domestic innovative effort and underlie the move to produce products and services with greater value-added to ensure high wages. The following two concept charts are useful for understanding the connection between innovation and the rest of the economy:

Concept of innovation by OECD

figure b

Concept of innovation by macro model. Source: Tae Young SHIN

figure c

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Kim, J.H. (2012). Innovation & Technology in Korea an International Perspective. In: Mahlich, J., Pascha, W. (eds) Korean Science and Technology in an International Perspective. Physica, Heidelberg. https://doi.org/10.1007/978-3-7908-2753-8_4

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