0. Korean Industrial Policy and the Role of Science and Technology
Suk Joon KIM
Ph.D.
President
Science and Technology Policy Institute

1. Korean Industrial Policy and the Role of Science and Technology
Suk Joon KIM
Ph.D.
President
Science and Technology Policy Institute

2. Contents Major Economic Indicators and Driving Force of Growth2
Major Economic Indicators and Driving Force of Growth 1 13
Major Industrial Policies and Achievements 2 25
Korea Innovative Capability in Science and Technology 3 32
Key Characteristics of Korean Innovation System 4 37
Policy Lessons and Future Directions 5

3. Major Economic Indicators and Driving Forces of Growth1
Major Economic Indicators and Driving Forces of Growth

4. Korea’s Major Economic Indicators
Current Situation
1960
1970
1980
1990
2000
2009
Population(1000)
25,012
32,241
38,124
42,869
47,008
48,747
GDP(US$, Billion)
2.0
8.1
63.8
263.7
511.8
832.5
Growth Rate of GDP(%)
1.2
8.8
-1.5
9.2
8.5
0.2
GDP per capita (US$) 79
254
1,645
6,147
10,841
17,074
Trade Balance (US$, Million)
-311
-1,149
-4,787
-4,828
11,786
40,469
Exports (US$, Million) 33
835
17,505
65,016
172,268
363,554
Imports (US$, Million)
344
1,984
22,292
69,844
160,481
323,085

5. < Trend of Korea’s Economic Growth >
1971~80
9.5%
High Growth Period
1981~90
9.1%
High Growth Period
1991~2000
6.7%
2001~10
4.3%
2011~2015 3%
Low Growth Period
Potential Growth Rate
Real Growth Rate
※ Source : The Bank of Korea

6. Growth Engine (1) : Export
< Export’s Contribution Rate to Economic Growth >
(Rate : %)
2003
2004
2005
2006
2007
2008
2009
Economic Growth Rate
2.8
4.6
4.0
5.2
5.1
2.3
0.2
Export’s Contribution Rate
111.2
93.3
69.2
72.9
64.3
20.1
172.1

7. Structure of Export Products(%) Heavy Chemical Industry
Trade Trend
Until 1980’s imports exceeded exports, but after 1990’s the situation reversed.
From 1990s, the products of heavy chemical industry exceeds those of light industry in the structure of exporting items.
Total Amount of Trade
Amount of Export
(A)
Amount of Import
(B)
B-A
Structure of Export Products(%)
Primary Industry
Light Industry
Heavy Chemical Industry
No. of Export Countries
No. of Trading Items
1960 3
0.3(0.03)
3(0.3) -3
45.4
9.2 59
712
1970
2.8
8(0.3)
19(0.6)
-11
17.5
67.9
12.8
122
1,504
1980
397
175(0.9)
222(1.1)
-47
11.7
46.4
41.8
172
6,010
1990
1,348
650(1.9)
698(2.0)
-48
4.9
38.5
56.6
197
7,062
2000
3,327
1,722(2.7)
1,604(2.4)
117
16.2
81.0
238
8,241
2007
7,283
3,714(2.7)
3,568(2.5)
146
1.6
6.9
91.5
227
8,641
※ Source : The Korea International Trade Association, The Korea National Statistical Office

8. Change of Major Export Item
< Change of the Five Export Items by Year >
1970
1980
1990
1995
2000
2005
2009
1st
Textiles (40.8%)
Textiles (28.8%)
Clothing (11.7%)
Semi- conductor (14.1%)
Semi- conductor (15.1%)
Semi- conductor
(10.5%)
Ship (12.4%)
2nd
Plywood (11.0%)
Electronics (11.4%)
Semi- conductors (7.0%)
Automobile (6.7%)
Computer (8.5%)
Automobile (10.4%)
Semi- conductor (8.5%)
3rd
Wig (10.8%)
Iron & Steel (9.0%)
Footwear (6.6%)
Ship (4.5%)
Automobile
(7.7%)
Mobile Phone (9.7%)
Mobile Phone
(8.5%)
4th
Iron Ore (5.9%)
Footwear (5.2%)
Media Equipment
(5.6%)
Artificial Fiber
(4.3%)
Petroleum Products (5.3%)
Ship (6.2%)
Display
(7.0%)
5th
Electronics (3.5%)
Ship (3.5%)
Ship (4.4%)
(3,9%)
Ship (4,9%)
Petroleum Products (5.4%)
Total
72.0%
57.9%
35.2%
33.6%
41.4%
42.2%
43.5%

9. Growth Engine (II) : Manufacturing Industry
< Growth Rate of Real Value-Added by Industries (2000) >
Industry
Growth Rate
(2002~2007, Average)
Agriculture
-1.1
Mining Industry
-1.2
Manufac-turing Industry
Manufacturing Industry
4.9
High Tech Industry
7.7
ICT Industry
5.3
Mid-High Technology Industry
3.3
Mid-low Technology Industry
1.5
Low Tech Industry
-0.7
Electrics, Gas, Water Supply
2.4
Construction
Service Industry
4.0
Total
3.9
※ Source : Korea Institute for Industrial Economics and Trade(2010)

10. Factors of Competitive- ness
Change of Industrial Structure
1960s
Industry for
Promotion
1970s
1980s
1990s
2000s
Light Industry
Heavy and Chemical Industry
Technology- intensive Industry
New Industry
Including ICT
Knowledge-
Intensive
Industry
Factors of Competitive- ness
Simple Labor
Skilled Labor
Capital
Technology
Innovation
※ Source : Hwang, Yongsoo(2007), “Role and Performance of S&T Policy to Cope with Transitional Needs of Economic Development”, Symposium for the Forty Anniversary of S&T Administration in Korea, , MOST & STPEI, Seoul

11. < Change of Industrial Structure Over Times >
Indicators – Change of Industrial Structure
< Change of Industrial Structure Over Times >
Year \ Industries
Agri- culture/ Fishery
Mining
Manufac-turing
Electrics/ Gas/
Water Supply
Construc-tion
Service
Structure of Manufacturing Industry
Light Industry
Heavy Industry
1960
36.8
2.1
13.8
4.1 -
43.2
76.6
23.4
1970
29.2
1.8
17.8
1.4
5.1
44.7
58.4
41.6
1980
16.2
2.0
24.4
2.2
8.0
47.3
42.5
57.5
1990
8.9
0.8
27.3
11.3
49.5
30.7
69.3
2000
4.9
0.4
29.4
2.6
8.4
54.4
22.4
77.6
2007
3.0
27.9
2.3
57.6
16.9
83.1
* Note : 1) Data before 1950 are based on the criteria of 1975, and data after 1970 are based on the 2000 & total amount of value added.
2) Data before 1960 include construction industry
※ Source : The Bank of Korea

12. < Contributions of Factors to Growth (1971~2004) >
Growth Engine(III) : Technology Innovation
< Contributions of Factors to Growth (1971~2004) >
Growth by (%)
Share (%)
Labor
2.22
29.1
1.17
20.4
1.75
25.9
Capital
3.24
42.5
2.58
45.0
2.95
43.4
TFP
2.16
28.4
1.98
34.6
2.08
30.7
R&D Stock
1.77
23.3
1.74
30.4
2.07
30.6
Real Growth
7.62
100
5.73
6.79

13. < History of Overcoming Economic Crisis >
Decisive Investment
Improve Economic Infrastructure
Invest in heavy industry such as petroleum chemical, steel industry etc. * Declare we enter the stage of heavy industry(’73)
1st Oil Shock (Oct’73~Aut 74)
Move industrial emphasis from light industry to heavy industry
Price stabilization, open economy
Promote high tech industry such as automobile and semiconductor as major industry
Invest in high tech industry such as automobile, and semiconduc- tor etc.
2nd Oil Shock (Oct’78~Apr’82)
Enlarge IT venture investment
Enlarge government R&D investment
* Enact ‘Special Act on Promoting Venture Companies(’97)
Financial Crisis (Dec’97~Aug.01)
Restructuring of large conglomerates
Promote IT as major industry
Global Financial Crisis (2008~)
Knowledge, innovation driven industry
Low carbon economic system
Promote new growth engine
Green Growth
※ Source : Ministry of Knowledge Economy

14. Major Industrial Policies and Achievements2
Major Industrial Policies and Achievements

15. < Science & Technology strategy Roadmap of Korea Government >
Competitive Develop- ment Stage
Factor Driven Stage
Investment Driven Stage
Innovation Driven Stage
Cheap labor
New Growth Engine Driven Stage
Source of Competition
Manufacturing capability
Innovative capability
Convergence capability
Major direction of Industrial Policy
Expand export oriented light industries
Expand heavy
and chemical
industries
Expand
technology
Intensive
industries
Promote high- technology innovation
Technology Commer- cialization
Green Growth
&
New Growth
Engines

16. < Science & Technology strategy Roadmap of Korea Government >
Role of
Government
R&D and Private Research Lab Promotion
Scientific Institution Building
Scientific Infra-structure Setting
Leading Role in Strategic Area
R&BD and Investment Promotion
Green Technology Promotion
Strategic program (highly advanced national project)
Enhancing university research capability
Linkages university- industry-govern- ment research institutes
Strategic increase of R&D invest- ment in GT
Promoting GT transfer and commercialization
Strengthening incentive schemes for inducing private invest- ment in GT
Establishment of ministry of S&T
S&T promotion law
Human resource development
Strategic program for tech. Business (R&BD, TBI, NTB)
Globalization of technology
Pursuit newly launched technology business and investment
Establishment of government research institutes
R&D promotion law
Highly qualified personnel development
National R&D funds
Promotion of the establish- ment of private research labs
Promotion of industrial R&D
Innovative
Capability of
Private secret

17. Major Industrial Policies and Achievements
Major Achievements
Economic and Industrial Policies
Science and Technology Policies
Fertilizer factories
- Chungju, Honam, and Hanbi
Cement factories
- Hanil, Dongyang, Hyundai, Ssangyong Yanghoe
Build oil refinery complex
- Ulsan, Yeocheon Build refinery complex
Fiber factories
- Produce polyester, nylon
Build Gyeongbu [Seoul-Busan] Expressway
1st Five Year Economic Plan (1962~1966)
- Promote industries to substitute imported products
- Change from agricultural to industrial economy
2nd Five Year Economic Plan (1967~1971)
- Promote export-driven industry
Enact 7 acts to promote industries
- Machinery, ship, fiber, electrics, petrochemical, chemical, steel, non-ferrous metal industries
Promote to introduce foreign technology
- Enact ‘Promotion Act of Foreign Capital’(1962)
Increase the need of S&T development for economic growth
- Establish ‘Korea Institute of Science and Technology‘ (KIST)(1966)
- Enact ‘Science and Technology Promotion Act’ (1966)
- Establish Ministry of Science and Technology(1967)

18. Major Industrial Policies and Achievements
Major Achievements
Economic and Industrial Policies
Science and Technology Policies
Pohang Steeler
World-class shipyard
- Build 26o thousand ton level oil tanker, VLCC
Localize automobiles - Hyundai produce ‘Pony’
Boom in Constructing in the Middle East
- Construct “Al-Jubayl Port” in Saudi Arabia, Waterway in Libya
Declare ‘Heavy Industrialization’ (1973)
- 6 strategic area such as steel, non- ferrous metal, machinery, ship, electrics and chemical
Promote defense industry
- Build 4 core factory in heavy machinery, cast pig iron, special steel, ship
※ Economic crisis of excess of heavy industry in the late of 1970‘s, decline of the economy of the Middle East, and the 2nd oil shock
Self reliance of private technology and raise excellent technology human resources
- Enact ‘Technology Development
Promotion Act’(1972)
- Promotion Act on Technology Service(1973)
- Law of National Technique Qualification(1973)
Organize government-led technology supply system
- Act on Promoting Specific Research Institute(1973)
- Start to build Daedeok research- academy complex (1973)

19. Major Industrial Policies and Achievements
Major Achievements
Economic and Industrial Policies
Science and Technology Policies
Semiconductor
- Develop D-RAM miconductor(1983)
Automobile
- Export ‘Excel’ to the U.S. (1986)
Communication
- Develop domestic calculator(TDX-1)
Machinery
- Produce NS machine tool, and large excavator,
Ship
- Produce LNG ship
Privately-led economy
- Prevent monopolistic, foster market structure and competitive market, enact ‘Monopoly Regulation and Fair Trade Act’
Measures to rationalize industry
- Enact “The Regulation Law on Tax Reduction and Exemption”(1981)
- Appoint 9 rationalization industries such as textile, fertilizer, footwear (declining industry) and automobiles
Shift from the fostering policy of individual industry to focusing on technology
- Enact ‘Industrial Development Law’, Abolish 7 fostering acts
Increase freedom of import and introduction of technology
- Abolish negative list of import
Host ‘Further Meeting of Technology Promotion (1982~1987)
Launch ‘National R&D Project’ (1982)
Policies to promote private R&D
- R&D Tax Support (1981)
- Alternative military service for researchers (1981)
- Acknowledgement system of company research center (1982)
- Establish KTDC(1982)
- Reduce tariffs on research materials (1983)
Make a Long term roadmap of science and technology for 2000’s (1986)
Introduce ‘Product Patent System (1986)

20. Major Industrial Policies and Achievements
Major Achievements
Economic and Industrial Policies
Science and Technology Policies
Semiconductor
- World-first development of M D-RAM (1995)
- The first semiconductor memory in the world
Automobile
- Firstly develop domestic engine( α engine) (1991)
- World 5th Automobile Producer
Ship
- Top in ship order(1993)
Home Electronics Appliances
- World-first commercialization of Digital TV
- World-first development of flat Display
Five Year Plan for New Economy (1992)
Enact ‘Law of Invention Promotion’ (1994)
Globalization policy (1995)
Become a member of OECD (1995)
Policy for promoting small venture company
- KOSDAQ market(1996)
- Act on Special Measure for Fostering Venture Company (1997)
National Project
- G7 Project (1992)
- Original Research and Development Project (1998)
- 21st century Frontier Project (1999)
Establish 「Sector Plan for Science and Technology(1993)」 in Five Year Plan for New Economy
Enact “Special Law on Science and Technology Innovation (1997)
- Five Year Plan for Science and Technology Innovation (1997)
- Establish ‘Long-term Science and Technology Vision toward the Year of 2025(1999)

21. Major Industrial Policies and Achievements
Major Achievements
Economic and Industrial Policies
Science and Technology Policies
Communication
- World-first commercialization of CDMA
- World-first commercialization of TDX 10
Pharmaceutical
- Develop new substance and new medicine in nation first (1999)
IMF Foreign Exchange Control Period (1997~2000)
- Industrial restructuring and aggressive M&A
- Special Committee of Small Companies (1998)
Establish Ministry of Information and Communication (1994)
- Basic Plan for Information Communication Research and Development (1998)
Liberalize introduction of technology
Law on Creating the Basis of Industrial Technology (1995)
- 1st Five Year Plan for Industrial Technology Development Plan(1996~2000)

22. Major Industrial Policies and Achievements
Major Achievements
Economic and Industrial Policies
Science and Technology Policies
Semiconductor
- Develop 32G RAND Flash Memory (2006)
Automobile
- World top 5, Reexport foreign technology (Hyundai Motors. Mitsbishi)
Ship
- World-first construction method on the ground
- Icebreaker, Aegis destroyer, ocean plant
- Obtain 40 percent of all world orders
Steel
- Build FINEX(Fine Particle Extraction) plant
Enact ‘Promotion Act of Technology Transfer’(2000)
Innovation-driven Economy (2003)
New Industry-Academy Cooperation (2003)
Balanced National Development
- Enact ‘Promotion Act for Regional Technology Innovation’ (2003)
Enact ‘Basic Law of Science and Technology (2000)
- Establish 1st, 2nd Basic Plan of Science and Technology (2002, 2007)
- Current government’s basic plan of science and technology
Fostering New Growth Engine (2008)
2nd Five Year Plan for Industrial Technology Development (2003~2008)

23. Major Industrial Policies and Achievements
Major Achievements
Economic and Industrial Policies
Science and Technology Policies
Home Electronics Appliances
- World-first TFT-LCD (2001)
- World first Digital TV
Components
- Secondary battery enter into world market IT
- World-first development of ground wave DMB(2002)
- Top high speed internet in the world(2002)
- Develop portable wireless internet ‘Wibro’ (2005)
Northeastern Economic Hub (2003)
Win-win Cooperation among large, medium, and small sized companies (2006)
Create Future Food Items
- Next-Generation Growth Engine Project (2003~2007)
- Green Technology Development Project (2008)
National Innovation System (NIS) Focusing on Science and Technology (NIS) (2003)
- Appoint Minister of Science and Technology as a Vice Minister
Policy to introduce global R&D Center
National Task to reach 5% R&D of GDP

24. Major Industrial Policies and Achievements
< Korean National Strategy for Green Growth >
VISION
To Become the World 7th Green Power 2020, and the 5th by 2050
Three Objectives, Ten Policy Directions
Mitigation of Climate Change & Energy Independence
Creating New Engines for Economic Growth
Improvement in Quality of Life & Enhanced International Standing
Effective mitigation of greenhouse gas emissions
Reduction of the use of fossil fuels and the enhancement of energy independence
Strengthening the capacity to adapt to climate change
Development of green technologies
The “greening” of existing industries and promotion of green industries
Advancement of industrial structure
Greening the land, water and building the green transportation infrastructure
Bringing green revolution into our daily lives
Becoming a role-model for the international community as a green growth leader

25. Selection of New Growth Engines
Develop 17 new driving forces in three areas
Green technology industry (6) : the foundation for future growth, energy use reduction and the high potential to tackle climate change and lack of resources
High tech convergence industry (6) : large world market size and high technology capability in Korea. Capable to create new industry and advance the existing industries through convergence
High value added industry (5) : huge potential of job creation. Capable to create high value added by complementing service industry
Green technology industry
High tech convergence industry
High value added industry
New renewable energy
Low carbon energy
Advanced water treatment
LED applications
Green transportation system
High-tech green city
Broadcasting telecommunication convergence industry
IT convergence system
Robot applications
New material Nano convergence
Bio medical medical devices
High value added food industry
Global health care
Global education service
Green financing
Contents Software
MICE Tourism

26. Korea Innovative Capability in Science and Technology3
Korea Innovative Capability in Science and Technology

27. Korea’s S&T Capability
S&T Statistics (Input)
1970
1980
1990
2000
2009
GERD (US$, 100 million)
0.03
0.4
46.8
138.4
297.0
Gov’t-funded vs Private-funded (%)
71 : 29
64 : 36
19 : 81
25 : 75
29 :71
R&D Expenditure / GDP (%)
0.38*
0.77*
1.87
2.39
3.57
No. of Researchers (FTE, Persons)
5,628
18,434
70,503
(108,370)
323,175 (244,077)
R&D Expenditure / Sales of Industry (%)
n.a.
0.54 (1981)
1.72
2.0
2.34
※ Source : Ministry of Science and Technology
* R&D / GNP

28. S&T Statistics (Output)
1970
1980
1990
2000
2008
No. of Applications for Domestic Patents
1,846
5,070
25,820
102,136
170,632
No. of Applications for U.S. Patents 3 8
225
3,786
5,908 (2006)
No. of Articles Published on SCI Journals
n.a.
236 (1981)
1,587
12,472
35,569
No. of Industrial Laboratories
46 (1981)
966
7,110
16,719
※ Source : Ministry of Science and Technology

29. Korea’s IMD Ranking(’06~’10)
Evaluation Index
Ranking
’06
’07
’08
’09
’10
Total expenditure on R&D : US$ millions 7
Total expenditure on R&D : % of GDP 6 5
Business expenditure on R&D : US$ millions
Business expenditure on R&D : % of GDP 4
Total R&D personnel in business enterprise
Scientific articles 12 10
Nobel prizes 25 26 27
Patent applications -
Patents granted to residents 3
Number of patents in force 13
Total ranking

30. Tech- nological Efforts
Technological Needs / Efforts
1960s
1970s
1980s
1990s
2000s
Tech-
nological Needs
Operation Technology
Equipment- embodied Technology
Production Technology
Critical/ Essential Technology
Creative Technology
Tech- nological Efforts
Importation/ Learning of Turnkey- based Foreign Technologies
Absorption/ Assimilation of Foreign Technologies, Reverse Engineering
Modification of Foreign Technologies, Fostering of Endogenous Technology Development
Broadening/
Deepening of Domestic
R&D Efforts
Strengthening of Future -oriented R&D Efforts
Imitation
Innovation
※ Source : Hwang, Yongsoo(2007).

31. Needs of Human Resource
HRD Needs / Efforts
1960s
1970s
1980s
1990s
2000s
Needs of Human Resource
Technician
Engineer
High- caliber Engineer
High- caliber R&D Personnel
Creative S&T Manpower
HRD Efforts
Expansion of Technical High School
Expansion of Engineering College
Cultivation of Graduate- level S&T Manpower
Cultivation of Highly Professional S&T Manpower
Brain Drain
Reverse Brain Drain
Brain Circulation
※ Source : Hwang, Yongsoo(2007).

32. World Competitiveness of Main Products
DRAM : World market leader since 1998(51%, 2009)
CDMA mobile phone : World market leader since 1998(38%, 2008)
Shipbuilding : World market leader(40%, 2008)
TFT-LCD : World market leader since 2001(46%, 2008)
Automobile : Fair global market share(5.7%, 2009)
TV : World market leader(35%, 2010)
Refrigerator : High global market share(22%, 2008)
Flash Memory : World market leader(54%, 2008)
Iron/Steel : Fair global market leader(3.9%, 2008)
※ Source : Ministry of Knowledge Economy, Korea International Trade Association

33. Key Characteristics of Korean Innovation System4
Key Characteristics of Korean Innovation System

34. Key characteristics of Korean Innovation System
Key factors that influenced the Korean Innovation System
Outward-looking development strategy → Pressure for R&D investment
Government policy toward FDI TT → Focus on indigenous R&D
Government-led industrial development
Industry-targeting → Inter-industry R&D imbalance
Favoring large enterprises → R&D system biased for large firms/Financial capability to invest in R&D
S&T for industrialization → R&D system biased toward technology development
Rich pool of well educate HRST → High absorptive capacity
Government-led development of S&T infrastructure → Relative importance of GRIs

35. Gross Expen- diture on R&D
Government’s role : STI support programs by stage
Input-based growth
Knowledge-based growth
R&D
Gross Expen- diture on R&D
Semi-conductor, digital appliances, IT, …..
29,703 (2009)
- Green Growth
- New Growth
Engine
Automobiles, Ships, Computer, Semi-conductor
Apparels, Steel, Chemicals, Construction, Home application
-NIS / RIS
-New Growth
Engine
-TT
-Industrial Base
Development Program
-Promotion of Ventures
-KOSDAQ
Wig Plywood
24,155
-MOST: HAN Project
-MOCIE: Industrial Base
TD Program
-MIC: IT, R&D
-R&D Tax Incentive
-Industrial R&D Center
-NRDP TT
-TD Reserve Fund
- TDPL / ETPL*
13,849
3,210
212
1970
1980
1990
2000
2005
2010
MOST
MOCIE, MIC, MOE, …..
Regional gov’s
PCGG, PMO
Tax
Technology Development Reserve Fund(’72)
R&D Tax Incentive(’81) Tariff Reduction for R&D Equipment(’82)
Special Tax Incentives for Foreign Engineers(’02)
R&D tax incentives for growth engine products
Finan-cial
Korea Technology Promotion Corp.(’74)
KTB(’82)
- Financial Support for Industrial
- Law for the Promotion of Start-ups(’91)
Development(’86)
- S&T Promotion Fund(’93)
- IT Promotion Fund(’93)
Green Growth Fund
New Growth Engines
Fund
R&D Subsi-dies
NRDP(’82)
Development Program(’87)
- Industrial Base Technology
- New Growth Industries (’03)
- Regional Cluster Program (’03)
- Green Technology Program(’08)
- Total R&D expenditure /
5% of GDP(’08)
- GT development program
- Support for new growth
engines
* Technology Development Promotion Law / Engineering Technology Promotion Law

36. Strength and weakness Strength
Consensus on the importance of S&T : Dynamism of Korean business enterprises plus strong commitment of the government to S&T-based national development
Economic environments conducive to active innovation : Domestic firms’ exposure to international markets – pressure for R&D
Chaebol system : Financial capability to invest in long-term risky projects
Human resources
Growing scientific achievements : publications, IPR, etc
Attained technological leadership in selected areas

37. Weakness Disadvantage of being small Imbalances in innovation system
Basic scientific research vs technological development
Large firms vs SMEs
Regional concentration
Manufacture vs Service
Excessive reliance on private investment : vulnerable to changes in markets
Weak industry-science relationship
Insufficient internationalization : insufficient international R&D collaboration and international co-invention, etc.

38. Policy Lessons and Future Directions5
Policy Lessons and Future Directions

39. Policy Lessons and Future Directions
Market competition is the very source of motivation for innovation
Pressure for technological competitiveness
Effectiveness of the outward-looking development strategy for small economies
Human resource is the key to learning
Government can play effectively the role of facilitator and promoter at the early stage of development
The efficiency of an NIS
Future Directions
Industry-oriented policy
Catch-up Strategy → Creative Strategy
Globalization and Open Innovation
Create New Growth Engine

40. Thank You.