Characteristics of Industrial R&D in K orea. International Workshop on Research & I nnovation in South Korea. 2003. 3. 4. Jae-ik Choi, Ph.D. Korea Industrial ...
Characteristics of Industrial R&D in K
orea
International Workshop on Research & I
nnovation in South Korea
2003. 3. 4.
Jae-ik Choi, Ph.D.
Korea Industrial Technology Association
1Contents
I. Current Status of Industrial R&D
1. Industrial R&D History
2. Features of Industrial R&D
3. Features of Industrial R&D Centers
4. Major Achievements
II. Industrial R&D Support
1. Tax Credit
2. Manpower
3. Financial Support
III. Problems & Policy Directions
1. Problems & Challenges of Korea’s Industrial R&D
2. R&D Trends in Industry
3. Policy Directions
IV. Government s Policies to Attract Foreign R&D Centers
’
1. Foreign Direct Investments in R&D
2
2. Incentives for Foreign Direct Investments in R&DI. C urrent Status of Industrial R&D ut usItriR&
3Industrial R&D History
• KIST(1966), Ministry of S&T(1967)
• Technology Development Promotion Law(1972)
1960~
• KOITA(1979)
70’s’s
• National R&D programs and Accreditation system of industrial
R&D centers(1981)
• Industrial R&D support policy launched
- Tax credit on R&D(1981), Military service exemption(1981), Cus
toms duties credit(1983)
1980’s
• Increase in the number of R&D centers
• Venture Promotion Act(1996): Surge of Venture Companies’ R&
D centers
1990’s
• Industry becoming the core of NIS(10,000, 75% of national R&D)
• Foreign R&D centers’ increase(134)
2000’s
4Features of Industrial R&D
R&D Investments by Industry
in US 100million dollars
1981 1985 1990 1995 2000 2001 2002
Total(A) 5.2 13.9 46.7 121.9 122.5 124.8 144.3
Industry(B) 2.1 9.1 33.1 89.1 90.7 95.1 108.1
B/A(%) 41.1 65.4 70.9 73.1 74.0 76.2 74.9%
R&D Spending by
M anufacturing Sector(2002)
in US 100million dollars
Mechanical appliances
Food p Other
Chemi
rocessi Textile manufa Total
cal
Electro Autom
ng cturing
Subtotal
Others
nics obile
Amount 77.1 49.4 13.7 14.0 9.7 1.7 1.0 3.1 92.6
% 83.4 53.4 14.8 15.2 10.5 1.8 1.0 3.3 100.0
5Features of Industrial R&D
R&D Intensity of Industry(R&D/Sales)
(%)
Country 1991 1995 1997 1995 2000 2002
Korea 2.02 2.51 2.57 2.15 2.37 2.51
International Comparison
US 3.6% (1999)
Japan 3.99% (2002)
Germany 3.90% (1999)
Korea 2.51% (2002)
6Features of Industrial R&D
Korea’s R&D Manpower
1981 1985 1990 1995 2000 2001 2002
Total R&D ma
20,718 41,473 70,503 128,315 159,973 178,937 189,888
npower(A)
Industrial R&D
7,165 18,996 38,737 68,625 94,333 111,299 118,160
personnel(B)
B/A % 34.6% 45.8% 54.9% 53.5% 59.0% 62.2% 62.2%
Ph.D.(%) 79(1.1) 251(1.3) 1,139(2.9) 3,373(4.9) 5,351(5.7) 6,932(6.2) 7,324(6.2)
MA(%) 612(8.5) 3,594(18.9) 8,822(22.8) 20,450(29.8) 29,166(30.9) 33,288(29.9) 37,596(31.8)
By deg
ree
BA(%) 5,685(79.3) 14,280(75.2) 27,414(70.8) 41,191(60) 51,594(54.7) 61,437(55.2) 65,249(55.2)
Others
789(11.0) 871(4.6) 1,362(3.5) 3,611(5.3) 8,222(8.7) 9,642(8.7) 7,991(6.8)
(%)
7Features of Industrial R&D Centers
Eligibility of Industrial R&D Centers
M anpower requirem ents
M anequi
SMEs
Five or more BA or higher degree holders in science and engineering
- Two or more researchers for venture companies’ R&D centers
LARGE
Ten or more BA or higher degree holders
Physical Requirem ents
Physquir
Independent R&D facilities(including space and R&D equipments)
necessary for R&D activities
- Space should strictly be seperated by the wall
8Features of Industrial R&D Centers
Rapid Growth of Industrial R&D Centers
9,810
9,705
9,070
8,927
8,863
SME Large
8,217
7,110
6,307
Total
4,810
3,760
4,013
3,060
2,610
2,270
2,960
1,980
2,278
1,690
1,435
1,201 1,350 1,862
883
800 853
1,578 803
842
966 1,113 797
782
824
903
604 708
748
455
290 532 692
421 577
545 493 630
152 183
53 82 122
81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
9Features of Industrial R&D Centers
SM E
8,927 / 91%
research centers
Concentrated on Electrics
5,573 / 57% of the total
& Electronics(ICT)
Concentrated in the
7,140 / 73%
metropolitan areas
10