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Written by Lall(1996)Presented by Jun, Yoo-Duk
IT Knowledge Creation Opportunities by Joint Collaboration
among APT Countries- Focused on Innovative Cluster
Policy in KoreaSQ 3.7
Rapporteur: Yooduk Jun([email protected])
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Content
• IntroductionIntroduction• Cluster and Technological RegimesCluster and Technological Regimes
• Study of Technological Innovation and Study of Technological Innovation and Clusters in the developing Countries Clusters in the developing Countries
• Case Analysis of Mobile Communication Case Analysis of Mobile Communication Clusters in KoreaClusters in Korea
• Conclusion and Policy ImplicationsConclusion and Policy Implications
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Introduction
• Since 1990s, the cluster-based policies for accelerating regional innovation and spreading developed technology have been experimented as successful strategies for nurturing and developing local industry and technology.
• Recently, Korean government has implemented various cluster-based policies to activate local economy. However, it seems likely to degrade the efficiency of the national innovation system which was promoted to chase the developed countries due to the problem that the cluster policies have been only focused on creating physical infrastructures such as attracting the associated companies or establishing research institutions or supporting organizations.
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Introduction of IT Cluster Policy
• Cluster Theory
– to foster the local industry
– to develop technology • Additional factors to affect innova
tive cluster
– Innovation pattern of developing countries
– Sectoral CharacteristicsICT Innovative
Cluster
ICT Innovative Cluster
Cluster theoryOECD(2001), Porter(1998),
Bok(2003)
Cluster theoryOECD(2001), Porter(1998),
Bok(2003)
SectoralCharacteristics
Breschi & Malerba(2000),
Malerba, 2002
SectoralCharacteristics
Breschi & Malerba(2000),
Malerba, 2002
Latecomer’s innovation pattern
Kim, L(1997), Song(2004)
Latecomer’s innovation pattern
Kim, L(1997), Song(2004)
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Cluster and Technological Regimes
• Innovative Cluster concept by OECD
Source : Compiled from Lee (2001)
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Cluster and Technological Regimes
• Sectoral innovation system & Technological Regimes
Source : Breschi (2000) Malerba (2002)
TR
TR
Opportunity
Appropriability
Cumulativeness
Knowledgebase
Source
Accessibility
Learning processOrga. capacity
Market feedback
Kn
owledg
e
Nature
InstitutionInstitution
AgentsAgents
Firms Non-Firms
Schumpeter petterns of innovationSchumpeter petterns of innovation
Geographicaldistribution
of innovators
Geographicaldistribution
of innovators
Knowledgespatial
boundaries
Knowledgespatial
boundaries
When the appropriability, opportunity and accumulativeness of technology are high, innovation leaders, especially industrial business groups, get together geographically, while they locate separately from each other when the same features are low, according to him.
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Study of Technological Innovation and Clusters in the developing Countries
Innovation ratio Process
innovation
Product innovation
Fluid Phase
(Variation)
Transitional Phase
(Selection)
Specific Phase
(Retention)
Time(reverse)
Acquisition
assimilationAcquisitionassimilation
UpgradeCreation UpgradeTechnology transfer
Technology transfer
Technology transfer
Utterback & Abernathy(1994)
Kim, L.(1997)
• Innovation Pattern of developing countries
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Assumptions
• The formation and evolution of clusters in Korea are assumed by means of the relationships of technology, the characteristics of technological changes
• The formation and evolution of clusters in the developing Korea are assumed to be established by means of national innovation system and its inherent technological innovation patterns.
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Case Analysis of Mobile Communication Clusters in Korea• R&D cluster for mobile communication
Source : J -Y Choung(2002)
Evaluation of Research Output
Policy Suggestion
Annual Project Plan
PolicySupport
System Development &Commercialization
SupportTechnicalSupport
ResearchFund
Research FinancialSupport and
Manpower Dispatch Parts & Technology
Development
ResearchConsignment
Core Technology Offer
ResearchManpower
Cooperation
MIC
Mobile Telecomm-unication Carrier - SKT- Shinsegi Telecom (94.7.)
Institute of InformationTechnology Assessment (IITA)
Domesticjoint Development
Manufacturer- LGIC- Samsung- Hyundai - Maxson
Cooperation of ETRI Division
-Semiconductor Tech. Group-Switching Tech. Group-Information Tech. Group-Code Technology Department
Cooperation Researchwith Qualcomm(U.S.A.)
MobileTelecommunication
TechnologyResearch Lab.
(ETRI)
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Case Analysis of Mobile Communication Clusters in Korea
Samsung LG Pantech ETRI others
1992 1 2 1
1993 1 2 2 2
1994 0 2 1 2
1995 5 5 1 6
1996 10 5 1 2 7
1997 30 5 5 1 16
1998 26 3 0 26
1999 34 8 7 2 50
2000 14 21 6 9 62
Total 121 53 19 19 171
Source : KIPO(1992~2000)
• Mobile phone patents
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Case Analysis of Mobile Communication Clusters in Korea• Regional Mobile industry production
Source : KAIT(2003)
Region Mobile Phone production Ratio(%) Mobile system Production Ratio(%)
Seoul 3,101,595 14.2 308,972 12.5
Kyonggi 3,402,439 15.5 562,216 22.8
Incheon 30,874 0.1 92,807 3.8
Pusan 815 - 21,772 0.9
Taegu 2,813 - 788
Kwangju - -
Daejon 24 - 11,173 0.5
Ulsan - - 687
Kangwon -
Chungbuk 1,258,113 5.7 30
Chungnam 359,330 1.6
Chonbuk - -
Chonnam - -
Kyungbuk 10,807,660 49.3 1,464,506 59.5
Kyungnam 2,947,726 13.5
Cheju - -
Total 21,911,389 100.0 2,462,951 100.0
(Unit: Million won)
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Case Analysis of Mobile Communication Clusters in Korea• Value Chains of Mobile Communication Clusters
Manufacturer(Brand)
Hardwareprovider
Softwareprovider
Developer
Test
IP
TelecommunicationService
Contents Service
•LCD•Memory•Battery•Modem chip•Camera Module
•Device controller: Memory, In/out•Modem controller•Middleware: WAP•OS: Brew, WIPI
Customer
Venture
Firms
Venture Firms
Operator, TTA, Firms
SKT, KTF, LGT
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Case Analysis of Mobile Communication Clusters in Korea
(Unit: No. of firm)
RegionManufacturer
(Brand)Developer Test Hardware Software
Contents and Service
Total
Seoul 2 36 49 17 93
Incheon 3 3
Kyonggi 3 10 13 1 1 28
Taegu 20 2 21
Kyungbuk 1 20 21
Kwangju 1 1 2
Daejon 5 2 7
Pusan 3 3
Chungnam 1 1
Ulsan 1 1 2
Cheju 1 1
Source : KOITA(2003)
• Regional distribution of Mobile firms
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Case Analysis of Mobile Communication Clusters in Korea• Mobile Communication Cluster in Kumi Area
KyungbukNational
Univ.
Samsung Electronics
Hub FirmTechno
pole
IT CRC
V4 V5
V2 V3
V7
Venturefirm1
V6
ETRI
S4 S5
S2 S3
S7
SME1
S6
Spin-offs
R&D collaborati
on
CDMA
Development
partnership
R&D collaborati
on
R&D Collaboration
Joint Developme
nt
Components
suppliers
Kumi R&D center
SamsungSuwon R&D center
<International>IntelIBM
YeungnamUniv.
Gov.
Local Gov.
Incubating center
Embedded SoftwareR&D Collaboration
SDI, SEM
Core Components suppliers
(Display, Camera module, battery)
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Conclusion and Policy Implications
• Conclusions– Clusters evolve in compliance with the
technology and technological changes – The formation and evolution of clusters
in the developing Korea are established by means of national innovation system and its inherent technological innovation patterns
• Policy Implications– there comes a necessity to investigate
Korean style cluster model in terms of technology and technological changes rather than to follow the successful cases of the past