regional innovation and cluster policies in...

Regional Innovation and Cluster Regional Innovation and Cluster

Policies in KoreaPolicies in Korea

Sam Ock Park Seoul National University

September 20, 2007

[email protected]://plaza.snu.ac.kr/~parksam

For Korea-France Workshop on Science & Technology Policies

I.I. Introduction Introduction II.II. Service Functions in the Service Functions in the

Production ProcessProduction ProcessIII.III.Dynamics of SocioDynamics of Socio--Economic Economic

SpacesSpacesIV.IV.Regional Innovation PoliciesRegional Innovation PoliciesV.V. Innovative Cluster PoliciesInnovative Cluster PoliciesVI.VI.ConclusionConclusionVII.VII.Key ReferencesKey References

Sam Ock Park 3

I. Introduction

To examine regional innovation and cluster policies in Korea with regard to

dynamics of socio-economic spaces

Service Worlds

대한지리학회지Knowledge-based Information SocietyKnowledgeKnowledge--based Information Societybased Information Society

GlobalizationGlobalizationGlobalization

Service WorldsService WorldsService Worlds

21st century21st century

Contrasting Spatial Forces Contrasting Spatial Forces and Patternsand Patterns in the Socioin the Socio--Economic spacesEconomic spaces

Purpose

Aging SocietyAging SocietyAging Society

Sam Ock Park 4

Service Functions in the Production Process(Revised from John R. Bryson, et al., 2004, Service Worlds, P. 52)

Service knowledge is becoming interwoven at all levels of production process and innovation

Many new start-ups in the knowledge-intensive services

CIRCULATION

- R&D- Engineers- Designers- Market Research- Testing- Finance- Expertise

- Product development- Product design- Quality control- Purchasing - Management- Technical knowledge

- Marketing- Advertising- Trade fairs- Exhibitions- Consultants- Finance

- Service- Software- Updating products

DESIGNPROTOTYPE PRODUCT PACKAGED

PRODUCT

- Material - Material-Land/Machines

-Packaging-Transportation- Warehouse- Shops

MANUFACTURINGPROCESS

DESIGNPROCESS

CONSUMINGCUSTOMISING

PRE-MANUFACTURING

DURINGMANUFACTURING

SELLING/DISTRIBUTION

CONSUMPTION

II.II. Service Functions in the Production ProcessService Functions in the Production Process

Sam Ock Park 5

1. Intensified Spatial Division of Labor1. Intensified Spatial Division of Labor

- Functional division in the economic space. Hierarchical division in the economic space

HQ and R&D vs. Production; High tech vs. Low tech; Knowledge-based vs. Technology-based

. Quality difference in addition to the size difference

. Dispersion of routine or standardized services

2. Diverse Social Spaces2. Diverse Social Spaces

- Inner-city community gentrification - Suburban silver-town- Rural longevity areas

III. Dynamics of SocioIII. Dynamics of Socio--Economic Spaces (1)Economic Spaces (1)

Due to the contrasting spatial forces with regard to the four mega trends, Dynamic Patterns and Processes are progressing:

Sam Ock Park 6

3. Innovative Cluster3. Innovative Cluster

- Buzz; Localized networks- Transfer of tacit knowledge and generation of new

knowledge. Collective learning. Formal and informal networks. Lock-in effects

4. Global Extension of Innovation4. Global Extension of Innovation NetworksNetworks

- Global Pipelines: Innovation; knowledge; capital; advanced services; products; and power

. Dispatch; business trips; telecommunications

. B2C e-commerce

. Global commodity chains and related services


Sam Ock Park 7

5. Virtual Innovative Clusters 5. Virtual Innovative Clusters

- Urban virtual networks vs. rural virtual networks. Internet network research group. Periodic meetings of the advanced researchers in

peripheral areas (both on- and off-line networks). Periodic clustering information, knowledge, and

technology

6. Industrial Restructuring in the periphery6. Industrial Restructuring in the periphery

- Restructuring for new paths. Evolving new cluster with new technology. Diverse firm strategies


Sam Ock Park 8

IV. Regional Innovation Policies in Korea(1)

1.1. Building Regional Innovation SystemsBuilding Regional Innovation Systems

2. Development of regional human resources and 2. Development of regional human resources and fostering provincial universitiesfostering provincial universities

3. Promotion of regional scientific technology3. Promotion of regional scientific technology

4. Strengthening Industry4. Strengthening Industry--UniversityUniversity--Research Research center networkscenter networks

5. Building RIS for rural areas5. Building RIS for rural areas

Sam Ock Park 9


•Industrial complex development•Import substitution; Export oriented

financial crisis

1980s

1960s~1970s

2000S

1990sIndustrial restructuring

•High tech industrial development•Industrial dispersion •Spatial division of labor

•Restructuring of Jaebols(conglomerates) •New start-ups (venture firms)

•Labor strategy•Subcontracting•Foreign direct investment•Technological development

•Industrial cluster•Innovative cluster •Regional innovation policy

early1990s

late1990s

Brief History of Korean Industrial PolicyBrief History of Korean Industrial Policy

Sam Ock Park 10


Building Regional Innovation SystemsBuilding Regional Innovation Systems1

Regional innovation plan(4 strategic industries for each region)

Regional innovation council (14regions; 132 counties)

Role: innovator, coordinator, facilitator, linker

14regions: 845members

132 counties: 4,123 members

Regional innovation networks: 45 Inno-cafe

Regional innovation convention & exhibition: every year

Education and training of innovation manpower

Sam Ock Park 11


Strategic Industries of 16 Cities and Provinces

Sam Ock Park 12


Development of regional human resources and fostering provincial universitiesDevelopment of regional human resources and fostering provincial universities

Strengthening innovation potentials of provincial univ. (NURI Project) with relation to strategic Industries

education, training, internship, joint research with firms, start-ups, employment (109Univ.; 7,484Professors; 190,000students)

Promotion of regional scientific technologyPromotion of regional scientific technology3

Increasing R&D investments to provincesShare of non-Capital region of government’s R&D investment: 27% in 2003---> 36% in 2006Regional R&D cluster; Technology parks; Regional innovation center; Regional design center; University IT research centerPromotion of regional research university

2

Sam Ock Park 13


Strengthening Industry-University-Research center networksStrengthening Industry-University-Research center networks

Key university for industry-university cooperation

Promotion of industry-university cooperationUniversity firm; Supporting internship

Technology transfer through I-U-R cooperation

Innovative cluster for regional agricultural products

Supporting R&D for regional agricultural cluster

Promotion of strategic products fitting to a region

Linking primary industry to secondary and tertiary industries

Rural industrial parks

4

Building RIS for rural areasBuilding RIS for rural areas5

Sam Ock Park 14

V. Innovative Cluster Policies in Korea (ICP-1)

1.1. Innovative cluster development of selected Innovative cluster development of selected national industrial complexnational industrial complex

2. 2. DaeduckDaeduck R&D Special DistrictR&D Special District

3. Innovative Cluster through regional industrial 3. Innovative Cluster through regional industrial promotionpromotion

4. Local culture cluster and high tech IT complex4. Local culture cluster and high tech IT complex

5. Private sector5. Private sector--led clusterled cluster

Sam Ock Park 15

V-1. Innovative cluster development for selected national industrial complexes(1) (ICP-2)

Changwon: Machinery

Gumi: Electronics

Ulsan : Automobile

Banwol-Sihwa: Parts and components

Gwangju: Photonics

Wonju: Medical instruments

Gunsan: Parts and components for machinery and automobile

7 selected complexes

Sam Ock Park 16

V-1. Innovative cluster development for selected national industrial complexes(2)(ICP-3)

Cooperative networks of innovative actors

47 mini-clusters for specific products: problem solving; technology forum; seminar

Participants of mini-clusters (April, 2005 to November 2006)

Firm->2109; University->603; Research center->140; Supporting institutes->176

Promotion Group as a network broker

On-line network (www.e-cluster.net): Integrated data base for patent, professionals, research facilities, etc

1) Open networks among Industry-University-Research Center- Government

3 Policy Issues

http://www.e-cluster.net/

Sam Ock Park 17


Mini-cluster organization by complexes

Machinery

ChangwonChangwon GumiGumi UlsanUlsan Banwol-Sihwa

Banwol-Sihwa GunsanGunsanGwangjuGwangju WonjuWonju

Electronics Automobile Parts and components photonics

Medical instruments

Parts and components Machinery Automobile

•Machine tool•Mold•Transportation device

•Mechatronics•Metal material

•Display•Component material

•Embedded•Home Network

•Mobile• Information-electronic component

•Mechatronics•Cast design•Power device

•Engine module

•Power train•Sash for automobile

•Design module

•PCB, Mold•Machine, P&P•Automobile components

•Metal material

•Fine chemicals

•Nano-mechatronics

•Energy• textile•Environment equipments

•Pure plate

•Optical components

•LED•Optical technology

•Electronic components

•Mold•Automobile components

•Electronic medical instruments

•Oriental medical instruments

•Rehabilitation medical instruments

•Medical instruments components

•Medical design

•Business service

•Plastic (for automobile)

•Machinery steel

•plasticity•Heterogen-eous sector

Sam Ock Park 18

Cluster On-Line Network (www.e-cluster.net) (ICP-5)

Network Activities

ManagementSupport

Support Firm’s PR

DB forI-U-R-G

Industrial Complex/Regional

Information

http://www.e-cluster.net/

Sam Ock Park 19


Supporting R&D infrastructure

Supporting regional industrial development

Supporting technology infrastructure

Supporting R&D funds for mini-cluster

2) Strengthening R&D capability of industrial complexes2) Strengthening R&D capability of industrial complexes

Remodeling of deteriorated plants

Expansion of green spaces

Task force team for improvements of industrial structure

Modeling ecological industrial parks toward a zero emission: Ulsan and Banwol-Sihwa

3) Improvement of residential and working environments3) Improvement of residential and working environments

Sam Ock Park 20

V-2. Daeduck R&D Special District(1)(ICP-7)

Total

Domestic 24,71231,162Registered

Patents Foreign 6,450

National Research Institutes (RI)

30

Private RI 44

Universities 6

Public Institutes 13

Supporting Institutes

13

firms 711

Ph D 6,375

MS 7,768

Others 3,247

17,390Talented Human

Resources

817Innovation Actors

Special Law for Fostering Daeduck R&D Special District (July, 2005)

Sam Ock Park 21

Major Activities for the Promotion of the Special District


Total Area(70.2㎢ )Total Area(70.2Total Area(70.2㎢㎢ )

Ⅰ

Ⅱ

Ⅲ

Ⅳ

Ⅴ

Ⅰ (27.7 ㎢㎢ ) Ⅱ (4.3 ㎢㎢)Ⅲ (3.1 ㎢㎢)Ⅳ (30.2 ㎢㎢ )Ⅴ (4.9 ㎢㎢ )

Ⅰ Daeduck Research Park

Ⅱ Daeduck Techno Vally

Ⅲ Dajon regional Industrial Park 3, 4

Ⅳ North Greenbelt

Ⅴ National Defense Research Center

Sam Ock Park 22

Daeduck R&D Special District

R&D Commercialization Reinvestment

Daeduk InnopolisDaedukDaeduk InnopolisInnopolis

SearchPromise Technologies

SearchPromise Technologies

Encourage Commercialization

Encourage Commercialization Promote

High-tech firms

PromoteHigh-tech firms

Daeduck innopolis R&D project

R&DR&D

Technomart

Support Technology Assessment & Patent Usage

Strengthen TLO Capabilities

InformationManagement

EstablishResearch Companies

Promotion of Start-up firms

Training Professional Manpower

Augmentation of Technology Finance

Marketing Support

Management Consulting

Establishment & Strengthen I-U-R networks

Networking & Dissemination

Global Business Environment

Major Activities for the Promotion of the Special DistrictV-2. Daeduck R&D Special District(3)(ICP-9)

RI

Univ.

Firm

Promotion of Technology Transfer C

reate Successfu

l Model

Create Su

ccessful M

odel

Sam Ock Park 23


Spin-offs from the research centers

Analysis of patent assets

Promotion of technology transfer


Supporting new business using developed technologySupporting new business using developed technologySupporting new business using developed technology

Operation of venture capital for Daeduck Special District

Technology financing

Tax reductions

Supporting foreign marketing

Consulting for start-ups, management, and technology

Training professional manpower

Providing innovative environmentsProviding innovative environmentsProviding innovative environments

Sam Ock Park 24


Diverse formal and informal meetings

Cooperative networks for entrepreneurship and technology firms

Supporting program by the stages of firm growth


Diverse CONNECT programDiverse CONNECT programDiverse CONNECT program

Networks with foreign innovative cluster (MOU)

Attraction of foreign venture capital and R&D centers

International conferences and PR

Providing innovative environmentsProviding innovative environmentsProviding innovative environments

Sam Ock Park 25

V-3. Innovative Clusters through the development of strategic industries (ICP-12)

Busan: Shoes, parts and components; bio industry

Daegu: New technology development

Gwangju: Photonics and electronic parts

Kyungnam: Intelligence home network; bio industry

Strategic industries for 8 provincial regions and Ulsan

4 regional industrial development promotions4 regional industrial development promotions

9 regional industrial promotions9 regional industrial promotions

Establishment for regional innovation infrastructure Establishment for regional innovation infrastructure for 4+9 regional industrial promotionsfor 4+9 regional industrial promotions

Sam Ock Park 26

VV--4. Local culture cluster and high4. Local culture cluster and high--tech IT complex tech IT complex (ICP(ICP--13)13)

Local culture cluster and high tech IT complexLocal culture cluster and high tech IT complex

Strengthening cooperative networks of innovative actors of culture industryLocal culture industry forumOn-line community for local culture

High-tech IT complex in Seoul- Sangam Digital Media Complex- IT R&D- IT Biz Center

Sam Ock Park 27

VV--5. Private Sector5. Private Sector--led Cluster(ICPled Cluster(ICP--14)14)

Private sectorPrivate sector--led industrial clusterled industrial cluster

Suwon: Samsung Semiconductor and Digital ValleyPaju: LG Phillips LCD ClusterPohang: Pohang University of Science and Technology

High-end Material Supply Base

Other Spontaneous ClustersIT clusters in Gangnam and Guro in SeoulOther local resource related clusters

Sam Ock Park 28

VI. Conclusion: Problems and Visions(1)VI. Conclusion: Problems and Visions(1)

ProblemsProblems

Weak cooperative networks among economic actorsTransition toward cluster formationWeak relationship between regional strategic industries and regional innovationstrategies

Weak I-U cooperation in the NURI programLimitation of cluster formation within administrative boundaryIntention of bottom-up movement, but still prevailing mind of dependence on central government

Sam Ock Park 29

VisionsVisions

VI. Conclusion: Visions and Problems(2)VI. Conclusion: Visions and Problems(2)

Balanced national development and strengthening Balanced national development and strengthening regional innovation capabilitiesregional innovation capabilities

Promotion of regional innovation potentials through Promotion of regional innovation potentials through development of local resources, culture, and historydevelopment of local resources, culture, and history

World-wide innovative cluster for some strategic industries

Developing Korean model of innovative cluster

Regions are blue oceans in knowledge-based information society: generating new competitive advantages

Some spontaneous examples: virtual innovation cluster in the long-live area

Sam Ock Park 30

VII. Key References

Bryson, John R., Daniels, Peter W. and Warf Barney. 2004. Service Worlds. People, Organisations, Technologies. London: Routledge

Castells, M. 2000. The Rise of Network Society. The Information Age Vol 1. 2nd edition, Blackwell, Oxford.Choi, Ji-Sun. 2003. Public B2B Electronic Marketplaces: A Spatial Perspective. A Ph. D. Dissertation, Department of

Geography, Seoul National University.Cooke, Philip, Heidenreich, Martin, and Braczyk, Hans-Joachim, 2004, Regional Innovation Systems, Second Edition.

Routledge, London and New York. Daniels, P. W., Ho, K. C. and Hutton, T. A. eds. 2005. Service Industries and Asia-Pacific Cities. London: RoutledgeHayter R. 1997. The Dynamics of Industrial Location. Chichester, New York, Weinheim, Brisbane, Singapore,

Toronto: Wiley.Freeman, C. 1995, The 'national systems of innovation' in historical perspective. Cambridge Journal of Economics 19:

5-24.Hotz-Hart, B., 2000, Innovation networks, regions, and globalization, In Clark, G. L., Feldman, M. P., and Gertler, M.

S., eds., The Oxford Handbook pf Economic Geography, Oxford University Press, Oxford: 432-450.Lundvall, B. and Maskell, P., 2000, Nation States and Economic Development: from National Systems of Production

to National Systems of Knowledge Creation and Learning, In Clark, Gordon, Feldman, Marryann P., and Gertler, Meric S., The Oxford Handbook of Economic Geography, Oxford University Press, Oxford, 353-372.

Lee,Jung Hyup., Kim, H. J. and Sohn, D. W., 2006, Korean Models and Strategies of Regional Innovation systems:Typology and Development Paths, SEPI Policy Research 2006-26.

Leinbach, T. R. and Brunn, S. D. 2001. Worlds of E-commerce. Chichester and NY: John Wiley & Sons, Ltd. OECD, 1999, Managing National Innovation Systems, OECD, Paris. Park, S. O. 1993. Industrial Restructuring and the Spatial Division of Labor: The Case of the Seoul Metropolation

Region, the Republic of Korea. Environment and Planning A 25.1: 81-93. Park, Sam Ock, 2001, Regional innovation strategies in the knowledge-based economy. Geojournal, 53: 29-38.

Key References(1)Key References(1)

Sam Ock Park 31

IX. Key References

Park, Sam Ock, 2003, Economic spaces in Pacific Rim: a paradigm shift and new dynamics, Papers in Regional Science: Journal of the RSAI. 82(2): 223-247.

Park, S. O. 2004. The impact of Business-to-Business electronic commerce on the dynamics of metropolitan spaces. Urban Geography 25.4: 289-314.

Park, S. O. 2006. Service Worlds and the Dynamics of Economic Spaces, In Harrington, J, W. and Danniels, P. W. eds. Knowledge-Based Services, Internationalization and Regional Development, Ashgate: 15-40.

Park, Sam Ock and Markusen, Ann, 1995, Generalizing new industrial districts: A theoretical agenda and an application from a non-Western economy. Environment and Planning A 27: 81-104.

Park, Sam Ock, Song, Kyung Un, and Jeong, Eun Jin, 2005. Industrial and innovation networks of the long-live area of Honam region. Journal of Korean Geographical Society, 40.1: 78-95(in Korean).

Presidential Committee of the Balanced National Development, 2007, New Cooperation between university and industry and the Connect Korea(CK) Project. 2007. 1. 24. (in Korean)

Presidential Committee of the Balanced National Development, Ministry of Education and Human Resources, 2006, Outcomes and Promotion Plan of the NURI project. 2006. 4. (in Korean)

Presidential Committee of the Balanced National Development, Ministry of Commerce, Inudstry and Energy, 2006, The Annual report for Balanced National Development Plan of the year of 2006. (in Korean)

Saxenian, A., 1994, Regional Advantage: Culture and Competition in Silicon Valley and Route 128, Harvard University Press, Cambridge, Mass.

Saxenian, A., 1996: Regional Advantage: Culture and Competition in Silicon Valley and Route 128. 2nd ed. Harvard University Press, Cambridge, Mass. Park, S. O. 2005. Network, embeddedness, and cluster processes of new economic spaces in Korea. In Le Heron, R. and Harrington, J. W. eds. New Economic Spaces: New Economic Geographies. Aldershot, UK: Ashgate: 6-14.

Zook, M. A. 2002. Hubs, Nods and By-passed Places: A Typology of E-Commerce Regions in the United States. Tijdschrift voor Economische en Sociale Geografie 93 (5): 509-21.

Zook, Matthew A. 2005. The Geography of the Internet Industry. Oxford, Blackwell Publishing.

Key References(2)Key References(2)

마스터 부제목 스타일 편집

Thank youThank you

Sam Ock Park Seoul National University

[email protected]

http//plaza.snu.ac.kr/~parksam

regional innovation and cluster policies in...

Documents