Capacity Building forNational/Regional Innovation in LAC

CountriesPresented at

The Third Meeting of Ministers and High Authorities ofScience and Technology of OAS

Panama City, Panama

November 17, 2011

Yongsuk Jang, Ph.D.Research Fellowjang@stepi.re.kr

Korea's Economic Development, 1953-2010

$67(1953)

$20,759(2010)

Source: The Bank of Korea • 1953-1970: Per Capita GNP (current US$, 1975 base

year)• 1971-2010: Per Capita GNI (current US$, 2005 base year)

11th Largest Economy

2nd Poorest Country

Roles of STI Policy in Korean Development

Period 1960s 1970s 1980s 1990s 2000s 2010~

Era Export-Oriented

Export-led Economic Liberalization

Democrat. Advancement

Global Leading

Focused Industries

Light Industries

Heavy Industries

Assembly & Processing Industries

ICT Knowledge Intensive Industries

Knowl. Service/New Converging/Green Ind.

Compet. Factor

Cheap Labor Skilled Labor Capital Investment

Technologies

S&T Innovation

Advanced S&T Innovation

Demanding S&T HR

Skilled HR Technical HR

Higher S&E High Caliber S&E

Creative S&E

Creative & Converging S&E

Demanding Tech.

Plant Mgt. Facility M&O Mfg. Core Tech. Endogenous Tech.

Source Tech.

S&T Policy Turn-key Capital Import/ Tech. Learning

Internalizing Imported Tech./ Reverse Eng.

Modify Imported Tech./ Develop Domestic Tech.

Advancing Tech. Catch-up/ Large Gov. R&D Prog.

Focus on endogenous tech./ Systemize S&T Prog.

Globalize S&T/ Focus on ConvergenceParadig

mChange

Imitation Catching-Up InnovationEndogenous Innovation

Evolution of Korean STI Policy

1982

Institutional Building

Technology Catching-Up

S&T Leadership

1981197119671962 1987 1991 1997 20041966

Korea Institute of S&T (KIST)

1992

Korea Advanced Institute of Science (KAIS)

National R&D Program (NRP)

Ministry of S&T (MOST)

Technology Development Promotion Act

Industrial Generic Technology Development

Program (IGTDP)

Deputy Prime Minister of MOST

(OSTI)

Information and Communication R&D

Program (ICRP)

Highly Advanced National Project

(HAN)

1st 5-Year Economic Plan Financial

Crisis

2008

Current Admin.

MEST & MKE

Industrial Shifts: Demands and Supplies

Light Industries

Heavy Industries

Assembly & Processing Industries

IT Industries

New Growth Engines

Demand Side

Supply Side

•Self-Sustain•Import-

Subs.

•Import Protectio

n•Export-Orient

•Mfg. Capacity•Industrial Seeds

•Open Market

•Higher Value-added

•Industrial

Diversification

•Import Tech.•Tech.

Capability

•Expand R&D

•Skilled HR

•Demand-oriented Innovatio

n

•Endogenous Tech.

“Select and Focus”

Trends of Public vs. Private R&D Investment in Korea

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

Private Share, %

Gov. Share, %

Source: MEST (www.mest.go.kr)

Focused on Market !

• The Core of the Success = Capacity Building• Always focused on Self-sustaining Capacity Building• Learning, Absorbing and Internalizing Imported Tech.• Now focusing on Endogenous Innovation Capacities

• Knowledge Sharing• Foreign Aid helped Korean Development a lot• Became the only Country transformed from ODA Recipient to Donor Country by joining the OECD/DAC in Nov. 2009• Time to Share Rich Korean Experiences

• Korean Strategy to Share Knowledge• Focus on Self-sustaining Capacity Building for Development• “Teach Fishing rather than Give Fishes out” => STI• Integrate the Korea’s Development Experiences• As Part of Science Diplomacy

The Core is Self-Sustaining Capacity Building

Science, Technology, &

Innovation Strategy

S&T Human Resources

Dev.

S&T Infrastructure

Building

Capacity Building for

Self-sustaining

Dev.

- Feasibility Study- Institutional Building (incl. Laws)- S&T Basic Plan- HRD Basic Plan- Regional Dev.- Monitoring & Evaluation

- S&E Higher Ed.- Technical/Research Training- S&E Dispatch/ Hosting- Teacher Training- Facility Mgt.- R&D Activities

- Research Institutes- S&T Universities- Lab. Install- S&T Facilities- S&T Equipments- Maintenance

Hardware

Software

Strategy

Core Components of Self-sustaining Capacity Building

• Establish regional think tanks in selected LAC regions

• Share Korean Experiences through Coaching

• Develop Specific Innovation Projects

• Create a LAC Innovation Network (LACIN)

A Proposal to IADB

Self-Sustaining Capacity for National/Regional

Innovation

Program Structure

Main Activities

RegionalInnovation

RIS Review

Think-Tank

StrategiesSTEPI Team

Programs

IADBInternational

Advisory Experts Group

Other Funding Sources

Local Stakeholder

Local Authorities

LAC Regional Innovation Network Diffuse to

Other LAC Regions

Coaching

11

STEPI: A Global Think-Tank

President

Prime Minister

NRCSThe National

Research Council for Economics,

Humanities and Social Sciences

KRCFKorea Research

Council of Fundamental S&T

(13 GRIs)

MKEMinistry of

Knowledge Economy

MESTMinistry of Education,

Science and Technology

STEPIScience and

Technology Policy Institute

KOCIKorea Research

Council for Industrial S&T

(13 GRIs)

A Government-sponsored Research Institute (GRI) for S&T Policy

• Identifies policy issues to effectively deal with future challenges

• Conducts research and analyses on the issues pertaining to science, technology and innovation

• Provides government agencies with policy ideas and suggestions for the promotion of innovation

• Suggests strategic options in technology development for the government as well as industries

• Collaborates with Global and Local Partners for Better STI Strategies

STEPI: Roles and functions

• IADB’s New Guidelines for Technical Cooperation (TC)

• Require the Country and IDB’s Country Office to Prepare “Country Programming Document (CPD) with a list of activities• So this proposal should be included in your Country’s CPD

• If interested;• Acquire detailed information on this Proposal (A full Proposal is under development), if interested• Contact your IDB corresponding line Ministry, normally Ministry of Finance or Planning• Make sure them to include this proposal in your CPD• Alternatively, Send me an official request and non-objection Letter signed by the IDB corresponding line Ministry, which will be accompanied with the submission of full proposal

• Korea will also Support• IDB’s Korea Trust Fund (KTF)• Other Funding Sources

Next Steps

Thank You!Thank You!

For Further Comments & Questions;For Further Comments & Questions;

Yongsuk JangYongsuk Jangjang@stepi.re.krjang@stepi.re.kr