Regional R&D efficiency in Korea from static and dynamic perspectives

Regional R&D efficiency in Korea from static and dynamic perspectives, Regional Studies. Research and development (R&D) efficiency has gained great attention in regional innovation research. This study examines the R&D efficiency patterns of 15 Korean regions for 2005–09. It employs data envelopment analysis to identify the regions' R&D performances relative to the best practices from the static perspective, and the Malmquist productivity index to evaluate their changes in performance within a given timeframe, providing a dynamic perspective. The results classify the Korean regions into deteriorating, lagging and improving groups, and indicate that most regions suffer from declining R&D productivity over time because of their inability to catch up with the best practices

Philosophical insights in system modelling : an application to the field of innovation systems

This paper argues for the need to establish a ‘dualistic’ philosophical approach to systems in system dynamics modelling. The example of a regional innovation system permits an investigation into the influence of philosophical perspectives on the analysis of systems, including decision-making processes and the implementation of policies identifying key influences. Results show that any dynamic regional innovation system, over time, finds it impossible to apply only one approach, with the result that the perception of its systemic problems and the corresponding managerial solutions are likely to change. Therefore, system dynamicists in the innovation policy area should pursue a dialectical policy of ‘thesis-antithesis-synthesis’, reflecting the ever-changing conditions within and around innovation systems

An analysis of regional innovation processes using operational research tools : the case of South Korea

Considering the pivotal contributions of technological advances and policies in developing regional innovation and competitiveness, this thesis begins with an open question which is ‘How do regions fulfil their territorial innovation potential and become competitive based on science and technology from a systems perspective?’ Prior studies have leaned towards a top-down view in evaluating the performances and competitiveness of regions, a correlation-based view in defining relations between resources and performances, and a static view in capturing the behaviour of regional innovation processes. However, these perspectives do not fully account for (1) ‘regional diversity’ which should consider context-specific conditions across different regions; (2) ‘regional structure’ in which functions (or capabilities) play a role in bridging the gap between resources (capacities) and performances to construct feedback loops for regional innovation processes; and (3) ‘regional behaviour’ which should reflect dynamics and evolution in terms of regional innovation, competitiveness, and policy effects. To comprehensively redress the research gaps in the extant literature, this thesis addresses three sub-questions: (1) Which regions are competitive in terms of R&D efficiency?; (2) How do regional innovation systems operate in the resource−function−performance structure?; and (3) How does regional competitiveness behave over time, and what policy(ies) can help or hinder regional competitiveness? Thus, through a case study focusing on Korea, this thesis aims to accomplish three research objectives. Specifically, it identifies the most competitive Korean region in terms of regional R&D efficiency and its time-dependent changes (Research Objective 1), a resource-function-performance structure comprising evolutionary innovation processes (Research Objective 2), and, based on this structure, policy measures promoting dynamic regional competitiveness (Research Objective 3). To achieve this purpose, this thesis employs a ‘three-paper route scheme’, comprising three publishable academic papers. For Research Question 1 (see Paper 1), this thesis investigates the R&D efficiency patterns of Korean regions for the period 2005–2009, through data envelopment analysis from a static perspective and the Malmquist Productivity Index from a dynamic perspective. The analysis results categorise Korean regions into deteriorating, lagging, and improving groups. Further, the results designate Busan as the most promising region with the largest growth in R&D efficiency over the long-term, despite its status as an inefficient region. Then, regarding Research Question 2 (see Paper 2), this thesis analyses Busan’s knowledge-based triple helix innovation process, by means of a causal loop diagram based on an interviewing method. For further analysis, this thesis examines the effects of system failures and policies on the operation of Busan’s innovation system. The analysis reveals that the effects of system failures and relevant policies spread across the domains of knowledge development, knowledge diffusion, and knowledge deployment. Moreover, the results indicate that the suggested policies appear intuitively effective; however, from a system-based perspective, the policies create counterintuitive effects on knowledge development in the industry and government research institute (GRI) spheres, knowledge diffusion in the university sphere, and knowledge deployment in the university and GRI spheres. To address Research Question 3 (see Paper 3), this thesis transforms the causal loop diagram, developed in Paper 2, to a simplified system dynamics model of capacity−capability−performance for analysing dynamic regional competitiveness and policy effects on it. According to the analysis results, the increase in the stock of human resources, increase in the success rate for knowledge development, and reduction in the lead time for knowledge commercialisation are highly effective in helping to intensify the governance of reinforcing feedback loops to promote the sustainable development of Busan’s regional competitiveness