2 July 2010 Suk Joon Kim (President of STEPI, Korea) Technology Transfer Policy of Korea Astana Economic Forum 1,2 July 2010, ASTANA
Dec 26, 2015
2 July 2010Suk Joon Kim
(President of STEPI, Korea)
Technology Transfer Pol-icy of Korea
Astana Economic Forum1,2 July 2010, ASTANA
2
Contents
Globalization and open innovation
Technology transfer as a source of innovation
Industrialization and S&T development of Korea
Technology transfer in Korea
Policy implications
3
R&D Globalization: a new keyword in technological innovation Globalization of technological source
Localization of R&D with localization of production
R&D global network
Technological fusion and convergence Needs for outsourcing technology, especially in high-tech area Globalization of R&D plays a very important role in the
strategies of multinational companies and it will certainly gain further momentum
Government policy to strengthen the globalization of R&D
Globalization and open innovation
4
Open Innovation Acquisition of external technology (licensing, corporate
VC, M&A, collaborative research) Externalization of R&D results (licensing, spin-offs) Globalization to tap into world-wide talent pools
Globalization and open innovation
Internal Technology Base
Current
Market
R D
External
Technology Base
Technology Insourcing
Technology Spin-off
New Market
Other Firms’ Market
5
What is ‘Technology Transfer’? A process by which a body of technical knowledge, tech-
niques, or tools is transferred from one place to another for use in a production or service environment from where it is generated to where it is used
Importance of Technology TransferProviding the means by which elements of the existing sci-
ence-technology base can be more closely coupled to the innovation process in order to spur productivity growth
Offering the opportunity to obtain a greater return from past investment in R&D
Ability to stimulate and strengthen the innovation process
Technology Transfer as a source of innovation
6
Pros and Cons of International Technology Transfer
Technology Transfer as a source of innovation
The Existence of Absorptive Capacity in LDCs
Yes No
Willingness of DC to transfer technologies
through formal mechanisms to LDCs
YesTransfer takes placeBoth DCs & LDCs
gain
Transfer takes place DCs gain but LDCs Become dependent
NoTransfer takes placeDCs lose but LDCs
gain
Transfer does not take place.
Both DCs & LDCs gain little
7
Learning and diffusion effects of TT
Time
FDI
Licensing
Imitation
IndigenousR&D
Learning &DiffusionEffects
Short-term effects: Licensing, FDI > Imitation, Indigenous R&D
Long-term effects: Indigenous R&D, Imitation > Licensing, FDI
Technology Transfer as a source of innovation
8
Barriers in the International TT from DCs to LDCs Investment Barrier Application Barrier Technology Adaptation Barrier Technical Capability Barrier
Recent Factors Influencing the Environments on In-ternational Technology Transfer Boomerang consideration Shortening product life cycle Reluctance to share results of scientific research Intellectual property concerns
Technology Transfer as a source of innovation
9
S&T Development System and TT
GovernmentAccumulatedKnowledge
TechnologicalEnvironments
EconomicEnvironments
Org’l & socialEnvironments
Invention R&D Market
[Innovation Process]
Univ.
Firms
GRIsTT betweenInstitutions
Vertical TT
Technology Transfer as a source of innovation
10
Policy Directions for activating TT
Cooperative R&D program
Personnel exchange
Technology networks
Active dissemination of
information and output
Spin-off from GRI & Univ.
Cooperative R&D program
Personnel exchange
Technology networks
Active dissemination of
information and output
Spin-off from GRI & Univ.
TT between Institutions Vertical TT
Program for supporting commercialization Professional institutions & manpower for technology market Technomart Legal protection for intellectual property
Program for supporting commercialization Professional institutions & manpower for technology market Technomart Legal protection for intellectual property
Technology Transfer as a source of innovation
11
Acquisition of technologies for development : ’60s and ’70s Development of light industries and heavy chemical industries for
import substitution and export-expansionGenerated enormous demand for technologies that were not avail-
able from domestic sources Policy responsesPromotion of inward transfer of technologiesDeveloping domestic absorptive capacity to digest, assimilate and
improve upon the transferred technologies
Industrialization and S&T development of Korea
DFI and FL played relatively less important role in TT in the process of industrialization of Korea. Korea relied on its HR for learning from foreign technologies transferred through informal channels.
12
Korean economic growth into the 1980sIncreased demand for complex and sophisticated technologiesIncreasing reluctance of foreign countries to transfer
technologies to Korea
Policy response : Launching the NRDP and promoting private industrial R&D
NRDP in 1982Policy incentives for industrial R&D : financial, fiscal, tax,
etc.
Industrialization and S&T development of Korea
13
Chronology of Major S&T Policy Measures
1960’s• Establishment of KIST (1966), MOST (1967)• S&T Promotion Act (1967)
1970’s•Establishment of GRIs in the field of chemical & heavy industries from
mid-1970s •Construction of Daeduk Science Town (Started in 1974)
1980’s•Launching of the national R&D program (1982)•Promoting private firm’s research institutes by reforming financial & tax in-
centives to stimulate R&D investment
1990’s
• Promotion of university research: SRC, ERC, etc.• Introduction of new types of nat’l R&D programs - Highly Advanced Nat’l Program, The 21st Century Frontier R&D Program. • Establishment of inter-ministerial coordination body: NSTC
2000’s
• Introduction of National Technology Road Map (NTRM) - To suggest TRMs for key technologies to secure products/functions. • Introduction of overall coordination system - Office of S&T Innovation in MOST was created in Oct. 2004
Industrialization and S&T development of Korea
14
Key factors that influenced the innovation system of Korea Outward-looking development strategy Pressure for R&D invest-
ment Government policy toward FDI and TT Focus on indigenous R&D Government-led industrial development
o Industry-targeting Inter-industry R&D imbalanceo Favoring large enterprises R&D system biased for large
firms/Financial capability to invest in R&Do S&T for industrialization R&D system biased toward technol-
ogy development Rich pool of well educate HRST High absorptive capacity Government-led development of S&T infrastructure Relative im-
portance of GRIs
Industrialization and S&T development of Korea
15
Technology Transfer in Korea
Technology Import Policy of Korea
Establishing a base for technology import and regulations (’62-’69) Relaxing regulations for technology import (’70-’78) Stepwise freeing technology import (’78-2000)
1960’s : “Act for importation of foreign capital (1962)” specified condi-
tions and permission criteria of technology import Priority for technologies in export-oriented industry, capital
goods, large spin-off impacts Rigid regulations for technology import : Royalty rates should
be within 3% It had worked to make the price of imported technology, but
technology import itself was not activated
16
Technology Transfer in Korea
Technology Import Policy of Korea
1970’s : Larger needs for foreign advanced technology in right time ->
government relaxed conditions and regulations for technology import
Government established GRIs to support selecting appropriate technology and assimilation & diffusion of imported technology
(ex: KIST -> Consulting Center for Technology Import)
1980’s - : Government simplified approving processes of technology im-
port more than 10 times after 1978, step by step Excepting several strategic industries, such as aerospace, nu-
clear and defense, government allowed all technology import without approving process
17
Technology Transfer in Korea
Technology Import Policy of Korea
Technologies for strategic industries were imported form AC 87% of imported technologies : machinery, metal, electric &
electronics, refined petroleum and chemicals Technology import had contributed to increasing plant &
equipment investments, enlargement of production facility and industry developments Turn-key based technology import in chemicals, fertilizer, ce-
ment, iron, paper making industries Technology acquisition by importing capital goods -> machinery
for production facility Amount of capital goods import is 23 times larger than that of
FDI and 70 times larger than that of licensing
18
Technology Transfer in Korea
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008-4,000
-2,000
-
2,000
4,000
6,000
8,000
-0.40
-0.30
-0.20
-0.10
-
0.10
0.20
0.30
0.40
0.50
1,947 2,297 2,415 2,387
2,686 3,063
2,643 2,721
3,236
4,147 4,525
4,838 5,103
5,670
-1,835 -2,189 -2,252 -2,246
-2,493 -2,862
-2,024 -2,083 -2,420
-2,731 -2,900 -2,941 -2,925 -3,140
0.06 0.05 0.07 0.06 0.07 0.07
0.23 0.23 0.25
0.34 0.36
0.39
0.43 0.45
기술수출 기술도입 무역수지 수지비
Technology Exports & Imports(Million US$, %)
Tech. Ex-ports
Tech. Im-ports
Tech. Bal-ance
BalanceRatio
19
USA
Japan
U.K.
Denmark
Germany
China
Slovakia
Hungary
India
Indonesia
-3,500 -3,000 -2,500 -2,000 -1,500 -1,000 -500 0 500 1,000
-3,082
-536
-234
-177
-173
739
260
109
106
82
Technology Transfer in Korea
Technology Exports & Imports (Million US$, 2008)
20
TT Policy of Korea focusing on TT from public to private
GRI have been played active roles for transferring advanced technology to the industry from 1960’s.
From the 1980’s, National R&D Programs initiated coopera-tive research and development between GRI and industry.
Technology Transfer Program for SMEs Technology transfer program to identify marketable technolo-
gies which had been on the shelves of GRIs, and to transfer them to SMEs
In 2000, Technology Transfer Act was announced to en-hance technology transfer between public and private sec-tor, and commercialization of R&D results.
Technology Transfer in Korea
21
Policy Implications
Lessons from Korean experiences Market competition is the very source of motivation for
innovation and technology outsourcing Pressure for technological competitiveness in the market Effectiveness of the outward-looking development strategy
for small economies Needs for advanced technology by technology transfer Human resource is the key to technological innovation “learning by doing” with imported technology Government can play effectively the role of facilitator
and promoter at the early stage of development Supporting technology import in selecting best partner with
reasonable prices
22
Appropriate technology transfer policy is needed with economic development stages Less developed stage : technology import with government
regulations Developing stage : technology import with accumulating in-
digenous R&D capability
Overcome barriers in the international TT from DCs to LDCs Investment Barrier Application Barrier Technology Adaptation Barrier Technical Capability Barrier
Policy Implications
23
Factors to be considered for technology import for developing countries
“Make-some-and-Buy-some” path
Impacts on economy : economic growth, local value-added
Impacts on S&T : innovation capability
Impacts on society : distribution of wealth and income
Dynamic TT rather than static TT
Policy Implications
24
Thank you!
25
Government S&T System of Korea
Prime Minister
President
Presidential Advisory Council
for S&T (PACST)National S&T Council (NSTC)
Ministry of Strategic Planning and Finance
Ministry of Education and S&T
Korea Research Council for Fundamental S&T
MOHW, MOE, MOCT, MOAF etc.
Other S&T related Ministries
Principal Secretary of Education and S&T
for President
Ministry of Knowledge Economy
Korea Research Council for Industrial S&T
[Appendix]