Post on 12-Oct-2020
transcript
The 2nd ‘Miracle on the Han River’
KAIST Visiting ProfessorKAIST Visiting Professor Lee Min Hwa1
KAIST Visiting ProfessorKAIST Visiting ProfessorKOVA KOVA Honorary Honorary Chairman Chairman Lee Min Hwa
Advent of Creative Economy
Fast Follower : Efficiency First Mover : Innovation
j b d P t hi tmajor company-based
Cost Strategy
Partnership ecosystem
Value strategy
Failure is final Failure is way to innovation
Trapped to GDP 20000$?
1960Poorest
1988
1995OECD Registered
GDP 20,000$?
Country in the world
1988Seoul Olympics
1960FemaleWorker
1970Technician
1980Salesman
1990Engineers
End of 1990
High TechWorker g
Brief History of High-Tech Startup in Korea
V 10 I P i d V 20
1996199619961996 1998199819981998 1999199919991999 2000200020002000 2002~20122002~20122002~20122002~2012 2013~ 2013~ 2013~ 2013~ 19971997199719971995199519951995
Venture 1.0 Ice Period Venture2.0
Foundation of KTTC
S i l A t f V t P ti
Lab Venture Movement
Foundation of INKE
Foundation of Kosdaq
Special Act for Venture Promotion
Establishment of KOVA
World Best Venture Eco-system in yr. 2000
INKEINKE
Global
KosdaqKosdaqWorld 2nd
Talent Stock Option
KTTCWorld 1st
Lab Venture
KTTCWorld 1st
V t A tV t A t
World 1st
Venture Association
Venture ActVenture Act
Emerging Capital Market next to USHigh tech companies next to US
ICE Period of Korean Venture
29 13530,000
35,000
합 계
VentureLeader
24,645
26,148
28,19329,135
25,000
18,89320,000
11,39212,218
14,01515,401
10 000
15,000
LeaderLeader Ice PeriodIce Period FollowerFollower
4,934
8,798 8,7787,702 7,967
9,732
5,000
10,000
10 years ago, Israel tried to Follow Korean Venture
2,042
0
’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13
Follow Korean Venture Eco-system( Seoul news 20130805)( Seoul news, 2013.08.05)
Venture – 19 years Summary
Total RevenueTotal Revenue
USD 300 Billion Annual Increase Rate 15%
Economic Growth contributed more than 1.5%
USD 100 Million VentureUSD 100 Million Venture-- 454454 I l KUSD 100 Million VentureUSD 100 Million Venture 454 454 ▶▶ USD 100Billion (‘13)USD 100Billion (‘13)
8 USD 1B$ Venture8 USD 1B$ Venture AppearedAppeared
Israel
8M Population8M Population
Korea
50M Population50M Population8 USD 1B$ Venture 8 USD 1B$ Venture AppearedAppeared
National Growth & EmploymentNational Growth & Employment
4,000 startup4,000 startup
InnovationInnovation
30,000 startup30,000 startup
Innovation & Innovation & ProductivityProductivity
Nomura Laboratory S̒trategy of Creation - Creation Generation y gyManagement and Know-How(1990)’
Agricultural Society → Industrial Society → Information-oriented
SocietyCreative Society
Peter Coy ʻBusiness Week(2000)’
A business that provides intangible values based on ideas can p g
only survive
From Hamburger to Software
John Howkins ʻThe Creative Economy(2001)’
Economy that deals with Creative product with Creative actions and
Economical values
Main countries’ Creative Economy Strategy
Local product,
Cool Japan (2010)
LifeTour, Art
Fashion, Food
AdvertisementCreative Britain (1997) Creative NationDesign
Music, Content
TV ㆍRadio, Software
Art work and AntiqueVideoㆍComputer gameCraftsFashionArchitecture
MarketingInteractive contentArchitecture
,Publication, Movie
Public performance industry
JournalismComputer
Film
Dual Convergence (2011)
UN’s Creative Economy
Creative Economy Report 2008, 2010
Developing Country’s development plan concept
Contribution to Economic development based on cultural asset
Curiosity, Will to experiment, Problem-solving g
An activity to gain a competitive advantage i h ld i h dAn activity to gain a competitive advantage through innovations in technologies,
businesses, marketing and so on.
Expressing the world with text, sound, and images created by imaginative
and originative ideas.
Korea’s Creative EconomyKorea’s Creative EconomyCreative Economy 2.0Creative Economy 2.0
Creative Economy of Britain and Korea
>C ti itCore of Creative EconomyCore of Creative Economy
>Creativity Action
2013, Korea
Creative-Industrialize all IndustriesCreative Economy1.0
1997, Britain
ㅊㅇ
Creative Creative Industry(6%)
Image, Advertisement, Design, Literature, Fashion,, Music, etc
Economy2.0,, ,
Did NOT choose Creative IndustryChose Creative Industry
Value Shift From Action to Creativity
CreativityCreativity InnovationInnovationd id iActionNew Skills, New Skills, IdeasIdeas products, Service,products, Service,Value CreationValue Creation
Action
PastAction
Easier Action
FutureCreativity makes money
Creativity
Difficult Innovation - Innovative Economy Death Valley and Darwinian Seay
CreativityInnovation
D i iD i i SS
Action FailureMarket Competition Expense
A i F ilA i F il
Death Valley DarwinianDarwinian SeaSea
Action Fail Action Fail
Action Fail Action Fail Action Fail Action Fail
Action Fail Action Fail Action Fail Action Fail
Action Fail Action Fail
Action Fail Action Fail
Easy Innovation, Creative Economy
Creative Economy’s Bridge
Meta-technology and Creative Economy’s ShipMeta-technology andInnovation Ecosystem
Creative Economys Ship
Market Platform
CreativityInnovation Innovation
SuccessSuccessRational InnovationRational Innovation
DarwinianDarwinian SeaSeaDeath Valley
Easy Innovation, Decreased StartupCost ( 5M$5K$ )Decreased Startup Cost ( 5M$ 5K$ )
Evolution to Creative EconomyEvolution to Creative Economy
App StoreApp Store 3D Printer3D Printer
Software Hardware
Meta SW
Open Source SW
Meta Hardware
Open Source HW
Open Platform O2O World
Open Platform CasesSocial Idea Platform,Quirky
Development Platform, Tech-Shop/ FABLAB
Life experiment Platform, Li i L b
Crowd Funding Platform, Ki k St t Living LabKick-Starter
Open Government Creativity means connecting thing –Steve Jobs
Regulationg
Closed Government
Open Government Creativity means connecting thing –Steve Jobs
De-Regulation
DeDe--RegulationRegulationgg
Open Government Creativity means connecting thing –Steve Jobs
De-Regulation
Government 3.0
DeDe--RegulationRegulation Government 3.0Government 3.0gg
Open Government Creativity means connecting thing –Steve Jobs
Entrepreneurship
De-Regulation
Government 3.0
규제의규제의 벽벽 허물기허물기 개방플랫폼개방플랫폼 깔기깔기 Venture PromotionVenture PromotionDeDe--RegulationRegulation Government 3.0Government 3.0규제의규제의 벽벽 허물기허물기 개방플랫폼개방플랫폼 깔기깔기gg
Integration of Science Technology, ICT, and Cultural Art
Creativity Innovation SuccessBridge of Creative Economy Ship of Creative EconomyScience & T h l ICT Culturey SuccessTechnology ICT Culture
Creative SocietyCo-evolution, Prosumer, Social Innovation2030 – If we think, we can make,
Korea’s Creative Economy is Creative-Industralizing all IndustriesCreative Industralizing all Industries
Creative Economy 2.0
Individual Tech ▶▶▶ Meta-technologygy
Solo Innovation ▶▶▶ Ecosystem Innovation
Vertical Systematization ▶▶▶ Open Platform
Strategy for Creative EconomyStrategy for Creative Economy@ Korea@ Korea
Change in Corporate ValueSS
CO
CO
MA
MA100%100%160160 5%5%
Hundreds Hundreds OfOf
TrillionsTrillions
REV
ENU
ESREV
ENU
ESO
MPO
NEN
OM
PO
NEN
ARKET V
AA
RKET V
A75%75%120120
21%21%
ICEN
SE R
ICEN
SE R
BLN
S U
S$)
BLN
S U
S$)
NTS O
F S&N
TS OF S&
ALU
EA
LUE
50%50%
100100 68%68%
79%79%
95%95%68%68%
LL (B(B
&P 500
&P 500 25%25%
505079%79%
$150+$150+
55
19851985 20052005 20252025
32%32%$5$5
32%32%
Market CapitalizationMarket Capitalization-- Real Assets (USA)Real Assets (USA)
Market CapitalizationMarket Capitalization-- IP (USA)IP (USA)
19851985
Global IP LicensingGlobal IP LicensingRevenuesRevenues
20052005 20252025
Creative Economy’s Value Change
$45bilion $125bilion$
80% i Patent’s Value80% is Patent’s Value
Value Chain Evolution of Creative Economy
Creativity
Differentiation is
C RI P
Differentiation is a company’s revenue source
R&D - Production- Marketing Customer RelationshipIntellectual Property
Production Innovation Production outsourcing
R&D Innovation R&D outsourcingR&D Innovation R&D outsourcing
Big Smile Curve
Frown curve → Smile Curve(Tsai,1999) → Big Smile Curve
IP B d CRBig Smile CurveR&D→IP Brand→CRBig Smile Curve
Frown Curve
ProductionR&D MarketingIP CRRate of Profit
30% 10%↓ 5% ↓ 10%↓ 30%
Knowledge Company
Creative Company
Creative Economy Paradox
Industry Economy
Manufacturing Cost = Labor Cost + Material Cost
InnovationVenture大Smaller
CreativeEconomy Creation cost =
Sales amount
R&D Investment
Market
CapabilityVenture大, Smaller
Big Business大, BiggerCapability
g , gg
Creative Economy Paradox!
Overcome Creative Economy Paradox and TRIZ
天天S ti i TiSeparation in Time
TRIZ
地地Separation in Space
人人Separation in PersonSeparation in Space Separation in Person
TRIZ
TeoriyaResheniya IzobretatelskikhZadatchTRIZ
Thinking tool for solving contradictory problems
(天 )Separation in Time : Open Innovation
Spin-off and WIN-WIN M&A
Spin- Out
Spin- Off
p
Time of Innovation
Time of Efficiency
Technology Technology VentureVenture
MarketMarketBusinessBusiness
M&A
Alliance, Licensing
Process of Business Globalization
Venture NewP d t
WIN-WINProduct M&A
DarwinianDarwinian SeaSeaDeath Valley
Action Failure Enormous MarketEnormous Market Entry CostEntry Cost
Win-Win M&A ‘s 3 effects
Venture TakesVenture Takes
Market!Market!
Leading companyLeading company
Takes InnovationTakes InnovationAngel Capital takes Angel Capital takes Recovery Market!Recovery Market!
Twentyfold difference Recovery Market for
Use Market Capability of Big
Business
between Venture and Big Company
R&D
Recovery Market for Angel Investor’s
profit actualization
Promote Venture Growth
Big Company’s innovation capability
Invigoration of beginning venture
investmentinnovation capability complementation
investment
Google’s M&AMain History
Year Company Main Technology Integrated Department1 2001 D j U t G l G1 2001 Deja Usenet Google Groups2 2001 Outride Web search engine Google Personalized Search3 2003 Pyra Labs Weblog software Blogger4 2003 Neotonic Software Customer relationship management Google Groups, Gmail5 2003 Applied Semantics Online advertising AdSense, AdWords6 2003 Kaltix Web search engine iGoogle7 2003 Sprinks Online advertising AdSense, AdWords8 2003 Genius Labs Blogging Bloggergg g gg… … … … …
125 2013 Behavio Social Prediction Google Now126 2013 Wavii Natural Language Processing Google Knowledge Graph127 2013 Makani Power Airborne wind turbines Google X127 2013 Makani Power Airborne wind turbines Google X128 2013 Waze GPS navigation software Google Maps129 2013 Bump Mobile software Android130 2013 Flutter Gesture recognition technology
Buyout 130 companies over 13 yearsy p y
(地 ) Separation in Space : Open Platform
App StoreApp StoreDeveloperDeveloperEfficiency Space
InnovationSpace
Overcome Creative Economy Paradox Complex Ecosystem
Smart Phone Industry
Single Innovation Fell behind
I-phone Google Android
Creative Company App Developer App Developer
Fell behind
ManufacturingCompany
ManufacturingCompany
ManufacturingCompany
Large ScaleMarket Leading
CompanyAppStore GooglePlay
p y
Supply Communications CompanyCommunications
Company
Complex Ecosystem Cases
ilil ililFilmFilmIndustryIndustry
Textile Textile IndustryIndustry
PharmaceuticalPharmaceutical GameGame
Scenario Design University Scenario
ProductionMedium-size
manufacturingBio Venture
Game Content
UniversalColumbia,
etc.Aramani, etc.
Multi-nationalEnterprise
Nexon,Hangameetc.
publishersEnterprise Hangame
Movie Retailers
Local Pharmaceutical Sale
TheatersRetailers Pharmaceutical
CompanySale
“from individual company competitionl t titito complex ecosystem competition”
Competitiveness =Combination of efficient platform & creative innovationp p
Small & Medium Venture= Creative InnovationSmall & Medium Venture= Creative Innovation
Global Company= Efficiency Platform
(人 )Separation in Person : Intrapreneur
EfficiencyInnovation y
Existing BusinessManagement O i ti
Innovation
New BusinessIn-company
Venture
ExistingExistingOrganizationOrganization
New New OrganizationOrganization
Organization
Intra Venture and Existing Organization’s Virtuous Cycle>>> Ambidextrous vs Taegeuk Organization>>> Ambidextrous vs Taegeuk Organization
Innovation that pursues pioneering
New Product and New MarketNew Organization, Intrapreneur
Organizational ConflictIn a fence
Separation+Circulation
Existing Organization, Management OrganizationEfficiency that optimizes repetitive tasks
Korean Intra Venture System
Taegeuk Organization
Separation and Circulation= Taegeuk
PersonSpace地地 人人天天 Time Person
Intrapreneur
Space
Open Platform
地地 人人天天 Time
Open Innovation
Endless無極 Polar兩極 Excellency combined 妙合 Life生命
Chaos混沌 Opposition對立
y
Virtuous Cycle善循環 WIN-WIN相生
Creative Economy = Virtuous Economy
Virtuous Cycle in TaegeukThrough Separation and Circulation
Value CreationValue Creation Value distributionValue distribution
InvestorInvestor
PerformancePerformance
EmployeeEmployee
CompetenceCompetencePerformancePerformance
EfficiencyEfficiency
CompetenceCompetence
InnovationInnovation
SuccessSuccess FailureFailure
Creative Economy and 8 National Strategies
① IntrapreneurInnovationInnovation
① Intrapreneur② Venture Activation
① O I ti
① Innovation Market② Economic Democratization
Virtuous Cycle Promotion
FairnessFairness
EfficiencyEfficiency① Open Innovation② Open Platform
②
① Cultural Innovation② Educational InnovationSocietySociety
7 Projects for Venture 2.07 Projects for Venture 2.0jj
Venture Ecosystem Type and Feature
li i li i
Korea China Japan USA
0.5
1특허출원
IP 로열티IPO 0.5
1특허출원
IP 로열티IPO0.5
1특허출원
IP 로열티IPO0.5
1특허출원
IP 로열티IPO
Patent Application
IP Loyalty
Patent Application
IP Loyalty
Patent Application
IP Loyalty
Patent Application
IP Loyalty
0
엔젤
캐피탈
M&A
벤처
캐피탈
0
엔젤
캐피탈
벤처
캐피탈
0
엔젤
캐피탈
M&A
벤처
캐피탈
0
엔젤
캐피탈
M&A
벤처
캐피탈
Venture Capital
Angel Capital
Angel Capital
Angel Capital
Angel Capital
Venture Capital
Venture Capital Venture
Capital
M&AM&A
M&AM&A
Supply-centered Market-oriented Technology-oriented Balanced
• Patent application amount• Highest patent applications relative to populations
• Insufficient excellent patents
• Patent application amount increased
• Can’t keep up with economic growth
• 340,000 patent applications per year
• Increasing IP loyalty
• 500,000 patent applications per year
• High quality of patents
• University Technology • Overwhelming scale of
• Angel capital, , lowest M&A holdings company as angel capital
• $20 billion scale M&A market
• Similar to Korea Venture capital• $ 40 billion scale of M&A market
Venture Capital with a scale• $ 9,000,000,000 scale venture
capital $ 1 2 billion scale venture• $ 29 billion scale of venture • Venture Capital with a scale
of $1.2 billion capital
• World’s largest IPO market relative to GDP
• $ 1.2 billion scale venture capital
capital • World’s largest IPO market
7 Projects For Venture 207 Projects For Venture 2.0
Recovery Recovery Entrepreneurship Entrepreneurship CoCo--GuaranteeGuarantee Crowd FundingCrowd Funding
1. KosdaqProject based learning KIBO, SINBO Micro Angel
2. Venture Certificationentrepreneurship 융합기술교육 Financing Angel
3. Stock OptionStart-up education Start-up funding
4. Technology Trading 3 Project for start-up activation
Th kI hope your better future
Thank you