1 An Overview of R&D Budgeting in Korea Symposium on International Comparison of the Budget Cycle in Research Development and Innovation Policies Madrid, 3-4 July 2008 Dong Hoon Oh

2 Science and Innovation Profile for Korea (2006) Source: OECD, Science and Technology Outlook 2008 (to be published)

3 A General Policy Cycle Feedback Policy rationale and objectives Ex-ante Strategic objectives Framework of implementation Potential fulfilment of the objectives Evaluation & Selection Which criteria? “Right” evaluation in order to fund the “right” programmes & projects Monitoring During life span Good programme management Active or passive Responsibility Ex-post Impact assessment Various perspectives Legitimisation of taxpayer’s money Foresight TA TRM Bargaining Process

4 “Plan-Do-See” of S&T S&T Level & Trend Analysis S&T Level & Trend Analysis Technology Assessment Technology Assessment National Standard S&T Classification National Standard S&T Classification S&T Indicators & Statistical Analysis S&T Indicators & Statistical Analysis R&D Investment & Program Analysis R&D Investment & Program Analysis S&T Foresight & Roadmap S&T Foresight & Roadmap National R&D Priority Setting National R&D Priority Setting National R&D Master Plan(5 years) National R&D Master Plan(5 years) Ministry Action Plan (yearly basis) Ministry Action Plan (yearly basis) R&D Program Implementation R&D Program Implementation Program Monitoring (yearly basis) Program Monitoring (yearly basis) National R&D Budget Allocation National R&D Budget Allocation Program Performance Evaluation Program Performance Evaluation

5 Three Pillars for Overall Coordination Survey & Analysis Budget Review & Allocation Program Evaluation Korea R&D Integrated Management System (Database ) National R&D Strategy

6 R&D Budgeting Process since 2004 Evaluation Results Analysis Results Results of R&D Budget Review & Allocation Draft on Major Activities for the Coming Year (Ministries → MPB, End of Feb.) Budget Guidance & Ceiling (MPB → Ministries, End of April) Budget Request (Ministries → MPB, End of May) Confirmation of Budget Request (MPB, June ∼ July) Budget Appropriation (MPB, August ∼ September) A Master Plan for Evaluation of National R&D Programs (NSTC → Ministries, Previous Nov.) Analysis & Evaluation of National R&D Programs (NSTC Secretariat, Feb ∼ May) Budget Review & Allocation (NSTC, June ∼ Early July) Approval of Results of R&D Budget Review & Allocation (NSTC, July) Evaluation R&D Budget Allocation Budget Appropriation R&D Budget Ceiling (NSTC, March ∼ April)

7 Nature of the Korean Overall Coordination Overall coordination (evaluation and budgeting) of R&D in Korea could be identified as follows: –Viewpoint: national perspective –Actors: central government (supported by agencies) –Level: program level –Type: functional + thematic –Frequency: short-term (annual) –Nature of process: top-down/expert-based/formalised –Result: evaluation report, budget plans and allocations

8 Issues The changing context –Emphasis on performance and accountability –Progress of international benchmarking –Development of methodologies –Requirements for greater transparency –Development of communication technology How to link/combine macro level priorities and program level funding in the budget process? How to harmonise socioeconomic and technological priorities? How to manage effectively the conflicts of interest in budget process? What opportunities do the new technologies/methodologies offer for improving budget process? Can we identify a set of key principles for a high-quality budgeting? If possible, What are they?

9 You are invited to discuss and comment on this presentation