The new growth engine in the 21stcentury depends on an innovative system to create, distribute and apply knowledge to industrialization processes. The industrial technology has been developed rapidly with the progress of knowledge based information in the last decade. In this point of view a cooperative partnership between industry and academy becomes much more important and necessary. Strategically fostering such cooperations and promoting rapid technology development have been reached with industrial clusterization in the last 20 years in Korea. --

Kim, Gi Eun

English

Research Papers in Economics

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Kim, Gi Eun
Working Paper
Technology innovation & green policy in
Korea
Ordnungspolitische Diskurse, No. 2010-02
Provided in cooperation with:
OrdnungsPolitisches Portal (OPO)
Suggested citation: Kim, Gi Eun (2010) : Technology innovation & green policy in Korea,
Ordnungspolitische Diskurse, No. 2010-02, http://hdl.handle.net/10419/55437 
Prof. Dr.-Ing. Kim, Gi Eun 
 
Technology Innovation & 
Green Policy in Korea 
 
Diskurs 2010 – 02  Prof. Dr.-Ing. Kim, Gi Eun 
 
Technology Innovation & Green Policy in Korea 
 
 
 
 
Abstract 
 
The new growth engine in the 21
stcentury depends on an innovative system to 
create, distribute and apply knowledge to industrialization processes. The industrial 
technology has been developed rapidly with the progress of knowledge based 
information in the last decade. In this point of view a cooperative partnership between 
industry and academy becomes much more important and necessary. Strategically 
fostering such cooperations and promoting rapid technology development have been 
reached with industrial clusterization in the last 20 years in Korea. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   2
Prof. Dr.-Ing. Kim, Gi Eun 
 
 
Technology Innovation & Green Policy in Korea 
 
 
During and after the Korean economic crisis in 1998 the so called 5 T’s (information 
technology, biotechnology, nanotechnology, environmental technology and culture 
technology) had been strategically planned as growth engines for the further 
development in the 21th century. At the same time in the research institutes and 
universities in these fields research and development has been strongly supported. 
The research results have been stimulated to be transferred for the industrialization 
process. Industries can spare their own efforts and investment for the research and 
development by technology transfer process from the academy. 
In Korea the original industrial clusters in some provinces were founded after 1960’s 
and the rapid economic development could have been reached. For the further 
economic success the knowledge based technology and application in the industry 
the clusterization projects have been performed with academic research institutes 
and universities since 1990’s. In the last government’s era under the name of 
‘Balanced national development policy’ the regional clusterization with academic 
education programs and research institutes strategically have been progressed. 
For the stimulation of the industrial development there have been several cluster 
strategies performed. For example, for the regional industry development ‘innovation 
clusters’ have been planned and founded. The technoparks with traditional 
manufactories have been changed slowly and nowadays there are many companies 
with knowledge based items. For the essential infrastructures and logistics have been 
invested continuously. Large companies with associated SMEs (small and medium 
size enterprises) get together in the same cluster. R&D centers and universities 
support industries for the technology innovation and brain gaining. A joint 
development of a core technology can be promoted with a consortium between 
industry and academy. Many kinds of incentives are offered and regulations for the 
companies have been simplified. Not only the foreign investors, but also the domestic 
companies have moved into the regional clusters. The industrial clusters in the 
provinces could have been successful and devoted for the economic development in 
Korea.   3
1.  Networking and Clustering 
In an innovation cluster networking is one of the most important factor. Networking in 
a location, between locations, between local members and between companies is 
fruitful only with interacting and concentrated functions. A networking does not mean 
that there is no competition between companies or regions. With an effective 
networking system an innovative competitiveness with other regions can be reached. 
A precluster with only a few small companies can be found at first for the further 
clusterization. These companies are linked together only with limited possibilities and 
it has also only little economic impact each other. But between these companies so 
called an anchor-companies can be born in the region. As a next step the 
clusterization will be processed with growing anchor companies. 
In an emerging cluster, where the companies are linked together and they will 
organize an industry association. With such a process the cluster expands with 
growing linkage. Economic effects and networking will be stimulated. As time goes, 
the companies and cluster change after the market conditions. In this moment cluster 
and companies are flexible for restructuring and try to adapt themselves. 
In the industry cluster a science park with research institutes and universities is very 
useful. In the science park knowledge networking can be practiced. A knowledge 
network should be organized with a purpose for cooperating researches, exchanging 
information and experiences. Especially networking between different levels and 
stakeholders within a science park is important. In a networked society the science 
and business community will be built. And naturally an environment for knowledge-
sharing and networking will be realized. There can also be created a market for the 
business of technology transfer. Patents can be transferred between companies and 
research institutes. Industry cluster and science park can be used to network and 
globalize information across nations and over the nations. 
 
2.  Innovation System & Green Cluster 
A cluster with innovation systems can be called as an innovation cluster. For 
networking and interacting in a cluster there needs professionals for the specific 
activities and functions to work with plan and concrete purposes. Even in digital 
economic system it is always useful to have experts for concentrating and interacting   4
in and surrounding regions. A specialist for networking creates processes to transfer 
knowledge in the cluster, between clusters and open innovation system. It is 
important for competitiveness with other companies and clusters. During the process 
the human resources and capitals are networked. The talent is a key intermediate in 
high technology industries and it will stimulate regional income and also regional 
growth. 
The networks of interdependent companies and research institutions will be liked 
together and the value will be higher. Especially there can be established a valuable 
cooperative partnership between large company ans SMEs. A large company needs 
many kinds of partners in small- and medium size at a short distance. It motivated to 
build a sub minicluster centering around large company. This type of sub minicluster 
can be begun with business agreement and for a small company a professional 
supporting system will be found and continued during all the production process in 
the large company. 
Besides innovation system a proenvironmental clusterization is necessary in the 
future. It is called as green cluster with ecosystem. A green cluster is based on the 
idea of industrial ecology, applied with natural ecological system. Concretely a 
purpose for zero emission and the wastes and by products are recycled. The 
percentage of renewable energy consumption is increasing and the economic 
performance will be also improved. There is a future perspective to form a green 
cluster with innovation system. 
 
3. New  Growth  Engines 
During and after the first economic crisis in Korea between 1997 and 2000 the so 
called 5 T’s(biotechnology, nanotechnology, environmental technology, culture 
technology) had been strategically fostered as growth engines for the nation. At the 
same time for the industrial development research and development has been 
stimulated. Many venture companies with variable own technologies were born with 
supports by the government. There were many successful cases and also failed 
companies. At last Korea could reach economic development in comparison with 
other countries faster and the Korean economy has been stronger than before the 
economic crisis. 
   5
4.  Technology & Green Policy 
The 21st Century began with ubiquitous technology and it belongs to the ubiquitous 
society, in which IT is incorporated into everything around human life. Especially the 
ubiquitous technology is globalized and formed in convergence technology. In this 
era the ubiquitous, globalized and convergence technology play important roles. 
Information and communication technology have been advanced very rapidly in the 
last 20 years. Eniac was found in 1946 and it was the first digital computer in the 
history. Since then the hardware has been developed faster, smaller and become 
mobile. The software has been reliable, flexible und user-friendlier. And embedded 
technology, which is essential for the convergence technology was found. 
Computers are bound with communication networks, for example client server 
system, distributed system and internet at last. Multimedea an internet has been 
spread very widely. The number of the user has been grown very rapidly and its 
globalization process accelerated. And the computer is used in every field, not only 
for business consumer, but also technical computing. The IT- industry in Korea has 
become very strong in the last years, especially semiconductors and cellular phones. 
The development of information technology industry could do for the paradigm shifts 
to policy, economy, education, social affairs, cultures, medicine and defences etc. 
The information technology based on convergence technology has become the key 
issue recently since the decleration of green growth paradigms. 
The research and development strategy for the emerging environmental technology 
has developed with variable steps. On the 15
th of August in 2008 the Korean 
president Lee, Myung Bak declared a new vision for the nation 'Low Carbon Green 
Growth'. The emerging green technology is based on the traditional green 
technology, for example, new and renewable energy resources. At second, the 
intelligent electric power with high efficiency and energy management for 
transportation and building. In third place the treatment of all the kind of waste and air 
pollution control are important subjects for environmental policy. The convergence 
green technology is based on the information technology, biotechnology, culture 
technology, nanotechnology and environmental technology. With these technologies 
it will be possible to overcome limitations of the existing technologies and create new 
areas in technology.   6
The level of environmental technology of Korea can be evaluated as 50-70% of the 
level of the advanced countries. The major green energy has a proportion of 1.4% in 
the world market and between 15 major countries Korea has the 11
th green 
competitiveness. In 2007, 600 million US dollar was invested. The level of the 
environmental technology of Korea is anticipated to being 80% in 2012, 90% in 2020 
compared with the green technology of advanced countries, respectively. Over 
160,000 jobs will be created in 2012. The green technology will occupy over 7% of 
world market company in 2012, over 10% in 2020, respectively. The environmental 
sustainability index will be 20
th in 2012, 10
th in 2020, respectively. 
How is the green policy being established for the national growth? There is a 
presidential committee for the green growth, which can be a umbrella function for the 
science and technology council, local governments, industry-, finance-, and green life 
council. The purpose of the presidential committee is to harmonize for the 
development of every social sector environmentally friendly. Because of the 
centralization and concentration of the organization there can be some or much 
problems and it will be necessary to be controlled. 
The green policy is established with variable working parts. At first for the R&D the 
green convergence technology with green house gas reduction intensively fostered. 
And the commercialization of the green technology transfer will be accompanied by 
tax benefit and financial supports. For the globalization of the green technology 
international cooperation for research and business many ideas and strategies are 
planned and realized. Of course in every step the government expects many kinds of 
jobs to be created. For the higher efficiency of the investment there is a system for 
selection and concentration. 
The 27 Major technologies consist of over 50 R&D projects and in 2008 the total 
investment was approximately 85 billion, for 2009 1.2 billion US dollar, respectively. 
In 2010 new and renewable energy resources, nuclear energy, intelligent 
transportation system, smart grid, ocean environment and advanced contents using 
convergence technology is now emphasized and the budget for the next year is now 
under consideration. 
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Technology innovation & green policy in Korea

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