Development and Management of Innovation Clusters in Korea and Policy Implication
3rd International Conference on Science, Technology, Innovation (STI) and Development
(STEPI-World Bank)
Seoul, Sep. 6 2017
Deok Soon Yim, Ph.D.
Senior Research Fellow Science and Technology Policy Institute (STEPI)
Contents
Development with Science and Technology
Issues of Innovation Cluster
Innovation Cluster Policy in Korea
Daedeok Innopolis
Technopark
Conclusion and Discussion
Note: The earlier version was presented in various workshops and training programs
2
Research Background and Questions
Science and Technology is a key factor for Korea’s
development.
And STI park is one of the main S&T policy focus
So many Science, Technology and Innovation Parks in the
world. Are they successful?
What are the Korean Experience and Policies?
Are there any lessons to be learned from Korea?
Conclusion and Discussion
3
Development with Science and Technology
Korea’s Development with Science & Technology
1970s 1980s 1990s 2000s 2010s
S&T Policy
Technology Imitation
Fundamental R&D
National R&D Program
Global S&T Player
Technology Imitator
Second-tier Innovator
Top-tier Technology Leader
Industrial Policy
Export- Oriented
Light Industries
Heavy and Chemical Industries
Technology Intensive Industries
High Tech Industries, Innovation
Clusters
New Future Industries
Actor
Per Capita GDP
255 US$ (1970)
1,660 US$ (1980)
6,303 US$ (1990)
11,292 US$ (2000)
20,562 US$ (2010)
5
Characteristics of Korea's STI development
Awareness of the STI importance from both
public (government) and private sectors
Government driven development
Harmony with industrial development
From field technology applied tech.
fundamental tech. basic tech.
6
Establishment of technological
innovation system: Gov't sponsored labs,
S&T universities, ST Parks
Rapid Increase of R&D investment: Ratio
of R&D investment (4.15% (2013) No. 1 in
the world)
Characteristics of Korea's STI development
7
Characteristics of Korea's STI development
Gov’t Policy
R&D Inst. S&T Park S&T Univ.
Industry
8
9
Innovation Actors 1970~80 1990~2010 2010~
Gov't ☆☆☆☆☆ ☆☆☆☆ ☆☆☆
Industry ☆ ☆☆☆ ☆☆☆☆☆
University ☆ ☆☆☆ ☆☆☆
Gov't labs. ☆☆☆☆☆ ☆☆☆ ☆☆☆
Promotion Agency ☆ ☆☆☆ ☆☆☆
Finantial Inst. ☆ ☆ ☆☆
Regional Gov't ☆ ☆☆☆ ☆☆☆
Characteristics of Korea's STI development
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Issues of Innovation Cluster Issues
Guro industrial Complex (1970) Guro Digital Complex (2006)
Traditional industrial complex vs. modern innovation cluster
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Source: [조선일보] 2006년 02월 16일
Guro: Shopping Cluster?
12
자료: 조선일보 자료: yahoo.co.kr
Sinchon: Entertainment Cluster?
13
Type What is the difference?
Science Park Science Town Technology Park Techno-park Techno-valley ??? valley Technopolis Innopolis Innovation Cluster
- Focus (science, technology, innovation) - Size of Area - History
So many S&T Parks and Innovation Clusters
14
Generation Characteristics
1st Science Park: Science and Technology-Push
2nd Technology Park: Market-Pull
3rd Innovation Cluster: Interaction between S&T and Market
4th Business Resort: Future Generation Innovation Cluster
Virtual network + Quality of Life ?
Source: Modified from (Yim, 2007)
From Science Park to Innovation Cluster
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An innovation cluster is a networked group of innovation actors and location(s), where the actors are creating economic and technological values by interacting, competing and collaborating with other actors in innovation processes, which functions as the source of innovative activities for the region/nation, and has global competitiveness (Yim, 2008; Yim, 2002).
Def. of Innovation Cluster
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Market,
Acceptance,
Size of
System
Time
Max. of
total system
Begin Grow Expand New Start, Maintain, Decrease
(Yim, 2008)
S type curve of Innovation Cluster Life Cycle
17
• Initial Conditions – Location, Technology, People, Culture, Venture
Capital and Consulting Firm, Other Infrastructure
• Down-stream Evolution (Yim, 2000) – From Production to Research
• Up-stream Evolution (Yim, 2000)
– From Research to Production
Evolutionary Process
18
Secondary Value Functions
Human Resource, Venture Capital, Information Supply, Consulting Service
Primary Value Functions
Upstream Development Pattern
Downstream Development Pattern
Production
(S&T
Knowledge Transfer)
Marketing
(Creation of Value)
R&D
(S&T Knowledge
Creation)
Two development Patterns of Innovation Cluster
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Incubator
Capital Culture
Human Resource
R&D Base
Policy & Management
Large market ?
Location
Key Success Factors of Successful Clusters
20
- Many government s– both local and
national – are trying to make successful
innovation clusters (STPs).
- How many of them are successful?
- Can they produce the expected results?
- What are the reasons for this phenomena?
Success Rate of Innovation Cluster?
21
Innovation Cluster Policy in Korea
Existing ones - S&T Parks - Technoparks - Industrial Complex
Change them from simple agglomerated complex into networked Innovation Cluster
New ones - National S&T Complex - Regional Gov’t initiated Technology Complex
Plan and put the cluster concept from the plan
Innovation Cluster
Direction of innovation cluster policy in Korea
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Ministry of Health and Welfare
Ministry of Trade, Industry and Energy
Ministries (Central Gov’t.)
Regional Gov’t
Ministry of Science and ICT
- Industrial complexe
- Digital Media City (Seoul)
- Gwanggyo Technovalley, - Pangyo Technovalley (Gyeonggi Province)
Presidential Committee on Regional Development
President
- Osong Bio-technopolis
- Innopolis
(As of year 2017)
Ministry of SMEs and Startups
- Technoparks - Center for Creative Economy and Innovation
Innovation cluster and concerned ministries
24
Paradigm Belief on the Effects of Innovation coming from organic clustering of Actors in the cluster
(or same region, or complex)
Authority Ministry of Science
and ICT Ministry of Science
and ICT Ministry of SMEs
and Startups
Ministry for Health, Welfare and Family
Affairs
Regional
Gov’t .
Innovation Cluster
Daedeok Innopolis Industrial Complex
Technopark, Center for Creative
Economy and Innovation
Osong
Bio-technopolis
Digital Media City, Gwanggyo
Technovalley, Pangyo Technovalley
Aim of Policy
To make R&D based innovation
cluster
To make manufacturing
oriented industrial innovation complex
To support technological
innovation at the region
To create bio innovation cluster
To create regional innovation cluster
Agency Daedeok Innopolis
Management Office
KICOX (Korea Industrial Complex
Corp.) Foundation
MM and Development Task Force office
Agencies of Regional Governments
Policy direction
Changing the simply
agglomerate R&D actors to
networked actors
Creating mini-clusters with
industry, academia, and research centers
Supporting technology transfer,
incubation and providing
equipments
Creating new innovation clusters for specific
purposes
Creating new innovation clusters for specific
purposes
(As of year 2017)
Overview of Innovation cluster policies
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Innopolis
Establishment 1973. Nov. (Plan Announced)
Location Daedeok,
Size 27.8Km2 → 70.4Km2
Employment 69,679 (13,484 Ph.D.s)
Tenant
Organizations
- 1,611 Organizations in Total, including 60 (public: 25, and private: 35) research institutes, 7 Universities and 1,521 companies
- 31 of start-ups have gone public at KOSDAQ)
Major Fields
(as of 2007)
IT (40%), BT (14%), Material Science (9%),
Chemical Engineering (8%), Energy Resource (8%)
Current status - Symbol of Korea's Science and Technology, - Hub for high-tech commercialization, creative economy
Source: https://www.innopolis.or.kr/eng/
Overview of Daedeok Innopolis (As of year 2017)
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Stage Period Features
Establishment 1973 - 1992
- Concept for the plan (1973)
- Construction completed and Government Research Institutes began to move in (1978 -1992)
Innovation Creation
1993 -1997 - Private research institutes began to move in (1993)
- Various S&T achievements from R&D
Formation of Innovation
Cluster 1998 -2003
- Daedeok Science Town Administration Law enacted (1999)
- Many venture companies spin-offed from the government research institutes right after 1997 economic crisis
Growing Innovation
Cluster. 2004 -
- High-tech start-ups started moving in, DST renamed as (2004)
- Daedeok Special R&D Zone Law enacted (2005)
- Establishment of Daedeok Innopolis with new Daedeok Innopolis Management Office (HQ) and bigger budget (2005)
Historical Development of Daedeok Innopolis
28
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Expansion of Innopolis to other regions
Source: innopolis.or.kr
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Science Park Model
S&T and Market Interactive Park Model
Innovation Cluster Model
Science Based Complex (S&T Island Approach)
S&T + Production + Market Interaction
- Network & Synergy
- Open Innovation System
Model
Policy Direction
Change of policy paradigm
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Technopark
Source: http://www.technopark.or.kr
History of Technopark
32
Source: http://www.technopark.or.kr
Vision and Mission of Technopark
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Source: http://www.technopark.or.kr
Role of Technopark
34
Expansion of Technopark to other regions
35
Related Actors Collaboration
Central Gov’t Ministry
Ministry of SMEs and Startups Policy Guidance
Regional Government
Each Province or Metropolitan City
Direct Guidance
Research institute
Regional branch of Government Research Institutes + Private Research Institutes
Weak Collaboration
University Universities in the region Weak Collaboration
Industry Technology based venture companies
Weak Collaboration
Other Public Citizen Minimum Collaboration
Each Technopark
Mngt. Office
(Foundation)
Governance and Mngt. of Technopark
36
Conclusion and Discussion
- Gov’t initiated clusters do not have exact success factors as can be found in naturally created ones
- Fail to understand the characteristics of innovation cluster (Long time project, big budget requirement and so on)
- Neglecting the S/W side of innovation cluster, mainly the management and governance system
- Mismatch between the management capability, authority, and resources
Why many innovation cluster fail?
38
- S/W policy is equally important
- Governance and management are important but neglected
- There is a difference between western culture and east-Asian
culture. (Horizontal vs. Vertical socio-political system)
- How to incorporate S/W perspectives in the master plan?
- How to secure constant support to make sustainable innovation
cluster?
Software side policy needs to be incorporated
39
Policy / Management
H/W factors
Performance
Location
Governance
Management Body Other given
conditions
Relationship of Performance Factors
40
Industries, universities, Research institutes
Activity
Development
Administrative or Management Body
Construction company
Innovation Cluster Planner
Policy Researcher
Activities of Related bodies for the Development of Innovation Cluster
41
Management Body for Innovation Cluster
Policy Research
- Cluster policy - Global trend monitoring
Infrastructure Building
Promotional Programs
Administrative Support
- Networking - Marketing - Incubation - Global assistance
- Liaison function - Gov’t budget - Admin. Service - External affairs
- Community Center - Transportation - Security Service - Entertainment - Community Service
Integrative Management W/ Good Governance
42
Evolutionary Stage Contents
1st Stage
(Planning cluster)
Participation in the planning process of innovation activities
2nd Stage
(Activity cluster)
Some activities among innovation processes are happening like joint R&D
3rd Stage
(Integrated cluster)
Compete and collaborate in almost all the innovation process so that industry, university and research institutes are very closely connected and prosper as the member of whole IUR cluster
Evolutionary Process of Univ-Ind-RI relationship
43
Starbucks: Knowledge Place
Pojangmacha: Korean Bar
Communication, Space and Culture
44
Deok Soon Yim, Ph. D. Senior Research Fellow
Science and Technology Policy Institute
Thank You! Any question?
