Dear all,

Full paper:

http://www.brookings.edu/~/media/Research/Files/Papers/2012/9/12%20korean%20technology%20campbell/CTI_19%20_Korea_Tech_Paper_Formatted.pdf


Ahmad Syamil
Arkansas State University
http://www.linkedin.com/in/asyamil2

=====================================

http://www.brookings.edu/research/papers/2012/09/12-korean-technology-campbell

SERIES: Issues in Technology Innovation | Number 19 of 24

 September 12, 2012

Building an Information Technology (IT) Economy: South Korean Science and
Technology Policy

By: Joel Campbell


South Korea has created a robust IT economy and in this paper, Joel
Campbell explores how the country's recent post-war history has encouraged
this technology and science development.

EXECUTIVE SUMMARY

Underlying Korea’s remarkable post-1961 economic development has been the
development of a strong science and technology capacity. During the
authoritarian regimes (1961-1988), the state created a rudimentary research
capacity, primarily focused on creation of government-run research
institutions, a technical university, and a central research park, as the
private sector gradually began to muster its own applied research capacity.
The late 1980s to late-1990s saw a change of direction, as Korea’s chaebol
conglomerates became the lead actors in R&D. The well-funded National S&T
Technology Program became the focus of state efforts, later superseded by
the 21st Century Frontier Program and specified research funds. By the turn
of the century, Korea had achieved strong aggregate performance in terms of
numbers of researchers and funds spent on R&D, and has continued to build
on that for the past decade.

The IT industry and, to a lesser extent, biotech have become the major
drivers of technological development. The shift from the old industrial to
new high tech economy facilitated a recasting of national efforts. A
refocused state helped midwife the nascent IT sector, through a combination
of privatization of the national telephone service provider, creation of
infrastructure, and dispute moderation. Even so, recent doubts about
Korea’s overall IT competitiveness have arisen.

Meanwhile, since the mid-1990s, Korean policymakers have been captivated by
the possibilities of “Big Science,” i.e., basic or foundational science.
Korea participates in various international basic science programs, and has
created another big state funding effort (the 577 program) to support basic
science. The government has spent much policy effort on drafting “visions”
of future technological development, but its technological future may
depend on maintenance of economic competitiveness.

The fast post-war development of South Korea is one of the most remarkable
economic stories of the twentieth century. The small Asian nation in 1960
was one of the world’s poorest countries, with a Gross Domestic Product
roughly equal to that of Ghana. By 1995, it rose to become the twelfth
largest economy, and Asia’s fourth largest. How Korea was able to
accomplish this remarkable feat is a much analyzed story in international
political economy, but at its heart was a largely autonomous state that
employed a combination of state-directed bank financing, light and then
heavy industrial export promotion, fostering of large industrial
conglomerates (the fabled chaebol), and suppression of labor unions to
create workplace peace. A hard-line military regime gave way to democracy
from the late 1980s onward, and the state committed to thoroughgoing
economic liberalization as a result of the calamitous 1997-1998 Asian
Financial Crisis. Since the late 1990s, Korea has generally been accepted
as an addition to the developed world and, as a mature economy, has seen
economic growth slow and population size plateau. Koreans have become
intense users of electronic media, with broadband computer connectivity and
cell phone service achieving nearly universal penetration.

Underlying Korea’s strong economic development has been a consistent effort
to create a robust science and technology (S&T) capacity. From the
beginning of Korea’s export-oriented drive in the 1960s, this has followed
two parallel tracks: creation of a state-led research and educational
capacity, centered on state-run research institutes, and in-house research
and development efforts by the chaebol and some medium-sized firms.
Universities were a relatively weak S&T player, at least until the late
1990s. After the mid-1990s, the focus of state S&T policy shifted from
industrial technology to promotion of the information technology (IT)
industry.

To get a better understanding of Korea’s technological development, this
article examines the post-1961 history of technology development, and the
transition to an IT-dominated economy in the 1990s. It then examines state
policy and institutional changes, and promotion of the technologies of the
twenty-first century. It considers state policy in global science and
technology, what Korean technology writers call “Big Science,” and Korea’s
future as a technology power.


[Non-text portions of this message have been removed]



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