56"23-,(7-1-6'89-#3(:'60;4( '<()',-.
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- Jane Parks
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1 56"23-,(7-1-6'89-#3(:'60;4( '<()', !"#$%&'()*+ )',-.(/#01-,2034
2 5'#3-#32 C D E J =.20;(:6.#(<',(B;;-6-,.30'#('<(*#>"23,0.6(B$$6'9-,.30'# I-$0'#.6(*#>"23,4(:,'9'30'#(:6.#2 H L M F,.#2<',90#$(*#>"23,0.6(5'986-G-2(0#3'(*##'1.30'#(56"23-,2 K8-;0.6(B;;'"#3(<',(=.6.#;->(?.30'#.6(7-1-6'89-#3 5'#;6"20'# 2
3 CO(=.;P$,'"#> CN(=.6.#;->(?.30'#.6(7-1-6'89-#3 Background The Korean government established Balanced National Development as one of the key national agendas and has promoted the Five-Year Plan for Balanced National Development to achieve social cohesion and national competitiveness simultaneously. Five-Year Plan for Balanced National Development : master plan of the current Korean government aimed at building a cohesive society prospering together through self-sustainable localization The Five-Year Plan for Balanced National Development is based upon the Special Act on Balanced National Development and had all central government agencies as well as the sixteen cities and provinces participate in the planning process. It is the grand strategy to accomplish balanced regional development and reinforce national competitiveness. It aims at sustainable development by strengthening the innovative capabilities of the local economies. Organization Establishment of the Presidential Committee on Balanced National Development on April 9th, 2004 Bureau for Balanced National Development Planning Bureau for Balanced National Development: Support bureau for balanced national development planning The Presidential Committee on Balanced National Development Central Government Ministries: Planning and implementation of the development projects Cities and Provinces: Planning and promotion of the specific regional innovation plans Regional Innovation Boards 3
4 DO(Q020'#2(.#>(K3,.3-$0-2 CN(=.6.#;->(?.30'#.6(7-1-6'89-#3 Visions Construct a nation prospering equally: Achieve social cohesion and national competitiveness Strategies Autonomous Localization Proactive Balance Integrated Balance Maximize the capabilities of regions and specialize Achieve balance between the different regions Build up RIS Tasks Nurture regional strategic industries Promote region-specific development Foster industrial agglomeration University Local Industry Government Support from Central Government Initiation from Local Governments Legislation and improvement of the system Set up the Special Act and Special Account Delegate central functions Achieve a nation-wide minimum standard Physical Infrastructure: SOC,Logistics, Information,Communication,etc. Living Infrastructure: Housing, Medical Services, Education, Culture, etc. 4
5 CN(=.6.#;->(?.30'#.6(7-1-6'89-#3 EO(+.0#(:'60;4(F.2P2 Major measures on balanced national development policy can be summarized into five main categories. Among them, building a regional innovation system and forming regional clusters as well as nurturing the regional strategic industries are deemed the core tasks. Promote development of backward regions Build upscale living infrastructure & networks of transportation, information, and communication Expand the ground for enlarging residents income and develop local resources To strengthen regional innovation capabilities and promote regionspecific development, there exists an increasing need for a network of regional innovation resources Strengthen regional innovation capabilities Promote specialized development of regions Relocate state-run agencies to the provinces Establish regional innovation systems Nurture provincial colleges, promote new collaboration between industries and universities Foster regional strategic industries Construct clusters of regional industries Relocate public agencies to the provinces Announced in late 2000; to start actual relocation in 2007 Complementary development between the capital region and the provinces Manage the metropolitan capital region Regulate the population of the capital region Scientific city- planning based upon regulatory reforms 5
6 CO(Q020'#2(.#>(K3,.3-$0-2 Set up the legal basis by enactment of the Special Act on Balanced National Development in December, 2003 and announced the Five-Year Plan for Balanced National Development in August, 2004 based on close cooperation between the central and local governments Proceedings of the Plan June, 2003 Announcement of the plan December, 2003 Set up the legal basis enactment of the Special Act October, 2003~ April, 2004 Set up the plan based on close cooperation between the central and local governments Objective Proactive regional development based upon development of regional innovation systems (RIS) throughout the nation Expert opinions and local voices collected and reviewed Construct the basis of technology and innovation-driven development Strategy April, 2005 Second take-off of national economic growth through balanced development by (1000 persons including experts from industry, academia, research institutions, and NGO participated) April, 2005 Vision Promote self-sustained basis for backward regions Pursue qualitative development of the capital region Form a network-based territorial structure Hearings were held nation-wide 6
7 DO(+0>(.#>(6'#$%3-,9(Q020'#2(.#>(70,-;30'#('<(:'60;0-2( The plan aims to build a strong basis for innovation over three consecutive five-year long phases and to achieve the highest qualitative level of innovation by maximizing the project outcomes. The Five Year Plan The First Plan (2004~2008) The Second Plan (2009~2013) The Third Plan (2014~2018) The Direction Of Innovation Build the basis for innovation Maximize the results of innovation Completion FOCUS Establish regional innovation systems Nurture innovative clusters Construct futuristic innovation-based cities Transform next generation growth engine industries into key industries Create world-class industrial clusters Construct a new administrative city Achieve top-notch technological development capabilities and global industrial competitiveness Compete with the world-class clusters Maximize the national economic growth potential 7
8 EO(K3,.3-$0-2(<',(*##'1.30'#%6->(7-1-6'89-#3 By building a strong regional innovation system through networks and promotion of mutual learning among innovation actors, the goal is to eventually nurture at least two or three world-class clusters. Establish regional innovation systems Universities Residents Central Government Networking & Mutual learning NGOs Local Enterprises Government Research institutions Nurture innovative clusters Create Regional Innovation Boards Examine regional innovation capabilities Evaluate regional innovation plans Hold regional innovation fairs Maximize regional innovative capabilities Promote New University for Regional Innovation project Expand the proportion of R&D expenditures Improve the efficiency and networking of technological innovative sites Establish national science technology-information system under e-science vision project Strengthen networking among academia, industry and research institutions Strengthen the cooperation between industries, universities, and research institutions Foster the activities of Industry-Academia Cooperation Committees Build-up INNO-Cafes Transform Daedeok Research Complex into an innovationbased cluster Transform industrial complexes into innovative clusters Develop ten futuristic innovative cities such as the Osong life science technopolis Promote regional promotion plans within RIS Attract FDI connecting regional clusters Platform for Innovation-led Development 8
9 EN(=.20;(:6.#(<',(B;;-6-,.30'#('<(*#>"23,0.6(B$$6'9-,.30'# =.;P$,'"#>(.#>(+.0#(5'#3-#32 The basic plan is to enhance industrial competitiveness and balanced regional development by supporting the industrial specialization efforts of the provinces and encouraging close cooperation amongst them. 9
10 EN(=.20;(:6.#(<',(B;;-6-,.30'#('<(*#>"23,0.6(B$$6'9-,.30'# Electronics Industry & Automobile Industry Electronics Industry Automobile Industry The applied research capabilities will be concentrated in the capital region and an IT-LCD cluster will be developed. Linkage among regions by similar fields : Gyeonggi-Cheonan-Asan-Gumi (display sector) and the Paju Seoul-Anyang-Suwon-Pyeongtaek axis (semiconductor sector) The southwestern part of the country and the Gangwon province need to specialize in new promising sectors and closely link themselves with firms in the capital region. Connect the southern part of Gyeonggi province and the Chungnam province, forming a cluster specializing in high value-added cutting-edge parts and components The Ulsan area will build a close linkage with the factories in Busan, Daegu and Gyeongbuk New integrated site in the Southwestern region centering on Gunsan will be built 10
11 EN(=.20;(:6.#(<',(B;;-6-,.30'#('<(*#>"23,0.6(B$$6'9-,.30'# Machinery Industry & Shipbuilding Industry Machinery Industry Shipbuilding Industry Icheon and Changwon will be developed as integrated sites for the machinery industry. Cheonan-Asan, Gunsan, and Daegu will concentrate on connecting the core technology with those of strategic industries located in their vicinities. Ulsan and Gyeongnam will specialize in large shipbuilding and R&D activities. Busan, specializing in shipbuilding equipments as well as small and mid-sized shipbuilding, will reinforce the existing connection with Ulsan and Gyeongnam. The southwestern region centering on Mokpo and Yangyang will specialize in small and mid-sized shipbuilding, linking it to the Busan area. 11
12 EN(=.20;(:6.#(<',(B;;-6-,.30'#('<(*#>"23,0.6(B$$6'9-,.30'# Aerospace Industry & Materials Industry Aerospace Industry Materials Industry Specialize in the assembly of airframe and production of airframe structure equipment around Sacheon, Changwon, and Gimhae in the Gyeongnam province Busan : airframe assembly and maintenance Seosan and Cheonan : aerospace equipment Jeonam, centered on Goheung to developed as a future site for the aerospace industry The existing sites for the materials industry, Ulsan, Gyeongbuk, and Gyeongnam, will be transformed into a high value-added production system by restructuring the industry landscape. Gyeonggi will be developed as a strong base for fine chemistry and co-development with other related industries by linking Daejeon and Chungbuk. Incheon will be nurtured as a promising site for a new material industry cluster utilizing the Songdo Techno Park. 12
13 EN(=.20;(:6.#(<',(B;;-6-,.30'#('<(*#>"23,0.6(B$$6'9-,.30'# Biotechnology Industry & Textile, Fashion, and Shoes Industry Biotechnology Industry Textile, Fashion, and Shoes Industry R&D capabilities and local conditions will be considered in designating different businesses to specific areas. Having Gyeonggi and Daejeon as dual centers, the plan aims to build a national network linking Incheon, Chuncheon, Naju, and Jinju. Jeju needs to make up for insufficient R&D capability through close cooperation with Daejeon. Seoul and Daegu, footholds of the fashion industry, will be developed as centers for disseminating fashion industry information, and Busan will specialize in wool textiles and Iksan specialize in knitting. Jinju is to be developed as a center for silk products and Gonju for jacquard products. Busan will be revitalized as an international parts supplybase for shoes and athletic shoes. 13
14 EN(=.20;(:6.#(<',(B;;-6-,.30'#('<(*#>"23,0.6(B$$6'9-,.30'# Environment Industry & Information Services Industry Environment Industry Information Service Industry Gyeonggi (recycling) and Incheon (recycled material disposal), which have strong local demand for the environment industry, will be developed as centers, and Ulsan and Gyeongnam will be developed as future sites. Gwangju will specialize in environmental measurement instruments in connection with the photonics industry, and Jeonbuk will specialize in the environmental services sector. Seoul will serve all areas of the information service industry, and Daejeon will serve as the center for basic technical development. Incheon will specialize in logistics and Gyeonggi in software Busan, Daegu, and Gwangju will also develop related fields 14
15 EN(=.20;(:6.#(<',(B;;-6-,.30'#('<(*#>"23,0.6(B$$6'9-,.30'# Business Services Industry & Culture Industries Business Services Industry Culture Industry Seoul will be promoted as the nerve center serving the whole nation. The centers of each major economic region, Busan, Daugu, and Gwangju, will specialize in specific business support services custom-tailored for the specific needs of the region. Busan will concentrate on film-related and service-oriented industries and the focus will be on linking those industries. Gyeonggi and Chuncheon will specialize in on-line games and animation, while Cheongju, Daejeon, Jeonju, and Gwangju will be nurtured as new centers for culture contents. 15
16 EN(=.20;(:6.#(<',(B;;-6-,.30'#('<(*#>"23,0.6(B$$6'9-,.30'# Logistics Industry Logistics Industry Busan, Incheon, Gwangyang, which are currently designated as free economic zones, will be developed as logistics bases for the industries located nearby, and Ulsan, Masan, and Pyeongtaek ports will be developed as supporting harbors for each major economic region. Core Center Promising Center General Center Strong Linkage Weak Linkage New Agglomeration 16
17 JN(I-$0'#.6(*#>"23,4(:,'9'30'#(:6.#2 Implementation Direction Overall Implementation Structure The regional industrial plans have been undertaken so as to assist the formation of industrial clusters and build up a regional innovation system (RIS) by fostering integration and networking among innovative actors centering on the strategic industries by region. Specialized development by region and 지역별특성화발전과국가균형발전 balanced economic development Competitiveness 지역산업의경쟁력 and 및dynamics 역동성제고of the respective regional industries Local governments Request for budget Agencies Regional Innovation Evaluation Infrastructure Building R&D Human resource development Business support General Discussion Co-planning & Consultation Notification of approval MOCIE Establish 지역전략산업 innovative 중심의혁신적 clusters 클러스터of 구축regional strategic industries Consultation Other agencies Consultation Implementation system Revitalize interregional networks Infrastructure building Improve the quality of Strengthen networking inter-industry linkages of industries A specialized total support system Technology Human resources Business-support development development services Evaluation System Local governments lead the initial planning process, ask for review and approval of the budget and modify projects as needed. Regional Innovation Agencies carry out the planning, management, and assessment of the infrastructure development, region-specific technology development support, manpower training and enterprise-support service programs. MOCIE annually evaluates the results and future business plans and signs agreements with supervising agencies based upon the results of the evaluation. ITEP (evaluation process), KOTEF (human resources training), and KOTRA (global marketing ) also serve specific roles. 17
18 JN(I-$0'#.6(*#>"23,4(:,'9'30'#(:6.#2 Starting with Daegu in 1999, the first stage plan (1999~2003) began in Busan, Gwangju, and Gyeongnam. Daegu (textile), Busan (footwear), Gwangju (photonics) and Gyeongnam (machinery) A grand total of trillion Won was invested from the national budget between 1999 and 2003, and total expenses reached trillion Won. The second stage plan (2004~2008) started in 2004, and a total of trillion Won from the national budget was invested Investment in the less effective projects of the first stage was largely reduced after strict evaluation. Daegu (textile: 367 billion Won billion Won ) Busan (footwear: billion Won 325 billion Won) Two ~ three promising growth industries were added to the support list. Daegu: textile+mechatronics, new technology-based industries (nano, mobile, biotechnology) Busan: footwear+parts&materials industry, marine biotech industry Gwangju: photonics +electronics parts industry Gyeongnam: machinery+robotics industry, intelligent home automation industry, bio-chemical industry 18
19 JN(I-$0'#.6(*#>"23,4(:,'9'30'#(:6.#2 C%CO(="2.# XY">$-3('<(DZZNM(Y0660'#(['#O A total of seventeen sub-plans in the areas of infrastructure building, technological development, human resources development, and business-support services, were promoted since the first stage so as to nurture the material components, marine biotech, and footwear industries as strategic industries. Strategic Industries of Busan Footwear industry - Build up technical base for high functional, new materials, and high-tech parts development - Train professionals through close cooperation between companies and universities - Strengthen global marketing capabilities Material & Components industry - Form knowledge-based clusters to serve original base technology - Create new products through technology convergence - Promote growth and specialization of parts suppliers - Overcome entry-barriers into product markets by accumulating trust - Create new industry segments by promoting commercialization of new materials Biotechnology industry - Promote commercialization of newly developed technology by linking the R&D and production functions - Promote joint research among industries, universities, and research institutions to secure original technology - Build integrated sites of biotech new ventures 19
20 JN(I-$0'#.6(*#>"23,4(:,'9'30'#(:6.#2 C%DO(7.-$" XY">$-3('<(DZZNM(Y0660'#(['#O A total of thirty-six sub-plans in the areas of infrastructure building, technological development, human resources development, and business-support services, were promoted to nurture mechatronics and new technology industries as strategic industries, in addition to the textile industry which has long dominated the Daegu industry landscape. Strategic Industries of Daegu Textile industry - Develop functional and intelligent materials - Foster textile machinery industry - Develop eco-friendly dyeing processing and digital printing technology - Nurture industrial textile fabric sector Mechatronics industry - Combine IT with machinery industry - Join system integration technology with production, technology New technology (nano, mobile, biotechnology) - Research on standardization, commercialization, and industrialization of NANO components - Build Mobile Technology Commercial Center - Develop commercial technology of mobile products and introduce strict testing and certification system - Develop various biomaterials, expedite industrialization, and support evaluations of functionality safety, and effects 20
21 JN(I-$0'#.6(*#>"23,4(:,'9'30'#(:6.#2 C%EO(UV.#$W" XY">$-3('<(D\LTM(Y0660'#(['#O A total of twenty sub-plans to foster electronics components industry along with photonics industry as strategic industries Strategic Industries of Gwangju Photonics industry - Industrialization of LED photonic communication as the main product line - Intensify R&D efforts for infrastructure utilization and technology innovation - Agglomeration of linked large-small and medium enterprises - Support start-ups and management innovation efforts - Photonics-related businesses increased 46 (1999) to 190 (2003) Electronics components industry - Construct total platform of support system related to electronics technology - Build a co-manufacturing base of small and medium-size enterprises and promote joint technical development among industries, universities, and research institutions - Strengthen the linkage between large firms and small and mediumsized enterprises 21
22 JN(I-$0'#.6(*#>"23,4(:,'9'30'#(:6.#2 C%JO(U4-'#$#.9 XY">$-3('<(DZZNM(Y0660'#(['#O A total of twenty one sub-plans to foster the robotics industry, intelligent home automation industry and biochemical industry as strategic industries as well as the machinery industry which already has a strong presence in the Gyeongnam area Strategic Industries of the Gyeongnam area Robotics and machinery industry - Fostering R&D capability of high-tech machinery - Incremental localization of components and materials of transportation machinery - Promotion of high-tech manufacturing robots and core technology development Intelligent home automation - Promote convergence of different industries and technologies into a competitive cluster - Maximize synergy effects through joint-research on technology - Setting up a joint training system for human resource development Bio-chemical industry - Complete institutional base for supporting biotech industry (from start- up to self-sustainability) - Attract high-quality public agencies and private enterprises - Maximize marketing effects of bio-related products 22
23 JN(I-$0'#.6(*#>"23,4(:,'9'30'#(:6.#2 DO(?0#-(7023,0;3(I-$0'#.6(*#>"23,4(:,'9'30'#(:6.#2 XD]]D%D]]MOS( A total investment of 1,1607 trillion Won, of which billion Won will be invested in infrastructure and 44 billion Won invested in the planning process Background As the outcome of regional promotion plans of four municipalities and provinces started to emerge, nine districts regional promotion plans have been added. To further solve the problem of unbalanced regional development between the metropolitan capital region and the provinces and to reinforce local autonomy, regional industry promotion plans in nine cities and provinces (Daejeon, Chungbuk, Chungnam, Jeonbuk, Jeonnam, Ulsan, Gyeongbuk, Gangwon) are being carried out. -Based on the evaluation of plans for regional industry development by thirteen cities and provinces, the regional promotion plans were selected -Since revitalization of regional industries is an essential solution to achieve regional balanced development, plans were established and publicly announced. -Twenty-seven regional specific industries are being promoted. 23
24 JN(I-$0'#.6(*#>"23,4(:,'9'30'#(:6.#2 Region Daejeon Chungbuk Chungnam Jeonbuk Jeonnam Jeju Ulsan Gyeongbuk Gangwon Create Bio-venture town Daedeok Valley high-frequency support center Industrialization of intelligent robot support center Semi-conductor equipment and components center Electronics & information components and parts center Medical support center Traditional medical R&D center Create electronics & information and display industry support center Film industry support center Animal resource support center Automobile parts and components center Designate and integrate automobile complexes Research center of machinery industry Commercialization of bio-foods support center Co-research of bio-agriculture support center Technological industrialization of new materials Build-up the ground for strategic industries to attract enterprises Support integration of regional strategic industries Bio-science park Create Auto-valley Ulsan precision chemical support center Project for building up Gumi digital elctronics-information complex Bio-health industry Build-up marine-life & environment support center Chuncheon Bio-town Wonju medical electronics Valley Business Gangneoung fisheries resources industry and build-up support center project Implementation Actor Daejeon Hightech Industry Foundation Chungbuk Info-communication Foundation Chungcheonbuk-do (scheduled) Chungbuk Traditional Medicine Center Chungnam TP Nonsan City Government Jeonbuk Automobile Parts&Components Innovation Center Jeollabuk-do Jeonju Machinery Research Center Jeonam Bioindustry Foundation Jeonam New Materials Industry Support Center Korea Industrial Complex Corporation, Korea Land Corporation Jeonllanam-do Jeju Hitech Industry Foundation Ulsan Industry Foundation Gumi Digital Electronics-information technology complex Gyeongbuk TP Gyeongbuk TP Chuncheon Bio industry Foundation Wonju Medical Device Techno Valley 江陵海洋生物産業振興員
25 HN(F,.#2<',90#$(*#>"23,0.6(5'986-G-2(0#3'(*##'1.301-(56"23-,2 CO(FR-(5",,-#3(K3.3"2('<(*#>"23,0.6(5'986-G-2 The current industrial complexes were formed by state-led economic development policies of the past regimes. Promising industries were selected and supported over the years, and have played a key role in promoting exports and increasing employment, and still possess strong potential to lead the innovation of the regional economies. < The key industries of industrial complexes > 1960 s 1970 s 1980 s 1990 s Petrochemicals (Ulsan) Textile, knitting (Gumi) Steel (Pohang)) Machinery (Changwon) Electronics (Gumi ) Components and Materials (Banwoel, Sihwa, Namdong) Machinery and Distribution Equipments (Daebul,Gunjang,Asan) < The current status of industrial complexes in Korea > Category National Local Agroindustrial Free Zone Number of Complexes Total Area (Million m2 ) Number of Resident Business 18,141 10,706 4, Output (KRW 100 billion) 2, Exports (USD 100 million) Employment (1,000 jobs) Industrial complexes account for 71.6% of total exports, 49.2% of manufacturing, 37.6% of employment in the manufacturing sector. Total ,481 3,368 1,340 1,069 Source : Transforming Industrial Complexes into Innovative Clusters (MOCIE, JUNE 3, 2004) 25
26 HN(F,.#2<',90#$(*#>"23,0.6(5'986-G-2(0#3'(*##'1.301-(56"23-,2 DO(=.;P$,'"#>(.#>(*986-9-#3.30'#(:,';-22 The government plans to transform industrial complexes into innovative clusters in order to nurture competitive clusters, which will in turn transform the Korean economy into an innovation-led one, leading the second economic take-off of the nation. (Report from semi-national subject conference in June 3, 2004 ) Background In an innovation-driven economy, it is crucial to formulate a mechanism of creating and expanding technology and knowledge to enhance competitiveness. Complexes need to improve productivity through entrepreneurship and technological innovation as well as closer exchange of technology and knowledge among innovative actors. Production-oriented industrial complexes need to enhance their research capabilities. Daedeok Research Complex which is strongly R&D oriented, needs to strengthen its production capabilities. Implementation Process President The Presidential Committee on Balanced National Development Promotion Committee on Innovative Clusters - Chairman: Vice-minister of MOCIE - Committee members : national committee members, officials, specialists Seven support teams for model clusters - Director : selected by open recruitment - Organization: fully reorganized Taskforce Team for the Daedeok R&D Special Zone - Director: Vice-minister of MST 26
27 HN(F,.#2<',90#$(*#>"23,0.6(5'986-G-2(0#3'(*##'1.301-(56"23-,2 EO(*986-9-#3.30'#(K3,.3-$4 The process is carried out through a step-by-step approach considering the R&D infrastructure and the level of cooperation between industries and universities, and networking. The model clusters are actively supported based on the characteristics of the respective complex, its innovative capabilities, and linkages with other regional businesses. Strategies Build-up weak sectors, the R&D infrastructure, the level of cooperation between industries and universities, and networking A step-by-step approach: short and long term plans Short-term Mid-term R&D infrastructure development Human resource development Differentiated strategies considering the characteristics of the respective complex, and the innovative capabilities of member firms - After analyzing innovation capabilities of each complex, focus on complementing the weaknesses - Devise various support-measures based on the technology capabilities such as High-tech, Mid-tech, Low-tech Enhance synergy effects by coordinating with plans promoted at the local level: relocation of public institutions (research institutions), strengthening provincial colleges 7% 46.1% 46.9% High-tech Mid-tech Low-tech Joint R&D and networking with research-oriented universities Buyer-oriented R&D and human resource training programs Improve their financial and technological conditions Select seven model complexes based on national development (inter-regional balance) and innovation capabilities of the regions (inter-regional efficiency) Main sites of existing clusters Well grounded innovation-based clusters Gumi (electronics), Changwon (machinery), Ulsan (automobile), Banwol-Sihwa (components and materials) Gwangju (photonics), Wonju (medical devices), and Gunsan (automobile, machinery parts) 27
28 HN(F,.#2<',90#$(*#>"23,0.6(5'986-G-2(0#3'(*##'1.301-(56"23-,2 Promote joint-development of core new technology linking industries, universities, and research institutions Promote core technological development by regional innovative actors Develop new core technology by building a consortium of regional enterprises, colleges, and research institutions <The Core Technological Development> Category Changwon Gumi Ulsan Banwol- Sihwa Gwangju Wonju Fields Robotics, next-generation batteries Digital TV, display Telecommunication technology development LED photonic communication core parts Nano Electronic medical devices Expand R&D capability of the industrial complexes The research infrastructure needs to be expanded in order to enhance R&D capabilities. In the case of model complexes, establishment of research centers are considered a priority. <Research Institutions by Region> Category Changwon Gumi Ulsan Banwol- Sihwa Gwangju Wonju Electronics Demand Mechatronics, machinery Digital manufacturing system Components materials research Photonics center Silver industry, industrial technology exam related Create innovative education programs and train professionals Foster innovative mind-sets of the CEOs and employees through training programs - Interaction with regional specialists by establishing and operating Techno Innovation Academies and expanding Inno-Cafés Mechanical engineering training matching the needs and demands of local enterprises - Customized education and technology support programs as well as close cooperation between academia and industries should be encouraged. 28
29 HN(F,.#2<',90#$(*#>"23,0.6(5'986-G-2(0#3'(*##'1.301-(56"23-,2 Improve the living conditions for technical engineers Enlarge land-supply for innovative clusters Simplify the process of restructuring industrial complexes To attract qualified human resources, strong incentives including improvement of living conditions are needed. Institutional support, building housing, welfare, education, culture, and leisure facilities - support for the improvement of living conditions in the localities by designating certain parts of the city as integrated sites of knowledge-based industry - housing, education, and tax benefits support for researchers relocating to the provinces are under review - relocation support for research centers To enhance their R&D capabilities, clusters need to attract R&D centers of foreign enterprises and provide for relocation of enterprises creating new technology and employment opportunities. Utilize idle sites and factories, which the Korea Industry Complex Corporation purchases and then provides for new members of innovative clusters, such as R&D centers Industrial complexes built back in the 1960 s~1980 s lack competitiveness resulting from the change in industrial structure and aging facilities, hence restructuring is often needed. The approval process for restructuring existing industrial complexes needs to be simplified. 29
30 LN(K8-;0.6(B;;'"#3(<',(=.6.#;->(?.30'#.6(7-1-6'89-#3 CO(=.20;(K423-9 For autonomous development led by the local areas, Regional Innovation Projects fostering regional strategic industries through clustering, and Regional Development Projects, developing economically depressed regions including farming and fishing towns (according to Article 30 of the Special Act on Balanced National Development), are being promoted. Special Act on Balanced National Development Article 2 (definition) Regional Innovation is to create, utilize, and expand development capabilities of regions, taking into account the level of infrastructure and characteristics of regions in the areas of human resources development, science and technology, manufacturing, and businesssupport services To promote regional innovation at both the local and national levels Innovation Projects Special Account for Balanced National Development Regional development projects account Regional innovation plan account 23 existing plans as of today New innovation plans by local government Balanced National Development Regional Innovative Development Plan by city and province Existing fields of business incorporated into the plan Key areas by strategic industries 30
31 LN(K8-;0.6(B;;'"#3(<',(=.6.#;->(?.30'#.6(7-1-6'89-#3 DO(I-$0'#.6(*##'1.30'#(B;;'"#3 The plan is to create, utilize, and expand development capabilities of the regions taking full account of the current level of infrastructure and the unique characteristics of regions in the areas of human resources development, science and technology, manufacturing, and business-support services, as well reflected in Article 2, clause 2 of the Special Act on Balanced National Development. Special Account for Balanced National Development Regional development projects account Regional innovation plan account The main objectives: improve regional innovation capabilities and infrastructure building as well as nurture regional strategic industries Special Act on Balanced National Development 1. Plan on constructing and revitalizing Regional Innovation System 2. Plan on bolstering strategic industries in the provinces 3. Plan on nurturing provincial colleges and developing human resources in the regions 4. Plan on promoting specialized science technology in the regions 5. Plan on expediting informatization and promoting informationtelecommunication in the provinces 6. Plans to relocate public agencies and universities that induce large population inflows 7. Plan on research to expedite regional innovation related to balanced regional development 8. Plan on any regional innovation-related project that the President or Minister of Planning and Budget deems necessary ((The Presidential Committee on Balanced National Development, 2004) 31
32 LN(K8-;0.6(B;;'"#3(<',(=.6.#;->(?.30'#.6(7-1-6'89-# Build up R&D capability in the regions Regional innovation plan account 1. Promote strategic industries in four cities and provinces 2. Regional industry promotion in nine districts 3. Regional Innovation System (RIS) model projects 4. Establish Techno Parks (TP) 5. Set up Regional Technology Innovation Centers (TIC) 6. Promote relocation of business enterprises to the provinces 7. Train manufacturing and engineering personnel (innovative manpower development) 8. Strengthen the innovative capabilities of regional universities 9. Support to strengthen the cooperation system linking industries, universities, and research institutions 10. Support specialization of junior and community colleges 11. Regional Science & Technology Innovation 12. Establish Regional Cooperation Research Centers (RRC) 13. Support capable scientists at regional universities 14. Nurture regional culture industries 15. Bolster design and fashion industry in Daegu 16. Establish Marine Biotech Research Center 17. Operate Regional Environmental Technology Development Center 18. Support S/W town development 19. Support operation of S/W support center in the regions 21. Business Incubator projects 22. Joint development of technology by industries, universities, and research institutions 23. Establish Venture Promotion Zones Supervising Ministry Ministry of Commerce, Industry, and Energy Ministry of Education & Human Resources Development Ministry of Science & Technology Ministry of Culture & Tourism Ministry of Maritime Affairs and Fisheries Ministry of Environment Ministry of Information & Communication Rural Development Administration Small and Medium Business Administration (The Presidential Committee on Balanced National Development, 2004)
33 :,'2! Solve the problem of heavy concentration of economic power and population in the metropolitan capital region! Continued gap between regional economies need to be narrowed! Need to promote self-sustained basis for local economies and develop strategic industries in the provinces! Despite the Special Act on National Balanced Development, the influx of population into the local regions is not increasing as expected! National competitiveness should not only reflect the competitiveness of the metropolitan capital region! Decentralization, national balanced development, and a new administrative city is needed for social cohesion! The plan focuses on mutual development between the local and capital regions by developing backward areas and transforming the metropolitan capital region into a center for high-tech industries 33
34 5'#2! Reverse discrimination against the metropolitan capital region! Relocation of universities, public agencies, and enterprises will lead to lots of separated families! It leads to low-efficiency in national development! Agree with the policy itself, but against using it for political motives! As for Gyeongggi-do, Yeoncheon and Paju areas are in the metropolitan capital region but are still quite backward. What about them?! The government plan to provide three million housing for the metropolitan capital region, doesn t match well with this plan! All problems arise from the fact that the central government has too much power, which increases the influx of enterprises, population, and public agencies to areas nearby. If so, is decentralization through relocation of public offices a real solution?! It can achieve better balance amongst regions but is it better for development efficiency and effectiveness? 34
35 5'#;6"20'# It is true that Korea achieved high economic growth by implementing central government-led economic development plans. In the process, however, heavy-concentration of capital, human resources, and government offices to the metropolitan capital region occurred. Such growth had its own limits and gave rise to social conflicts and increasing imbalances amongst regions. To achieve continuous economic growth in the age of fierce international competition, Korea needs to find a way to achieve mutual benefits for all members of society. Is the Cluster Development Policy of Korea a real solution for sustainable and balanced economic growth in the future? 35
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