Development of technology-intensive industries in Korea

Abstract

This article evaluates the effect of research and development (R&D) promotion policies on the development of Korea's technology-intensive industries. Together with financial and taxation benefits, national R&D projects have played a crucial developmental role. The formation of a national R&D consortium by the government contributed to the transformation of the Korean semiconductor industry from an imitator to an innovator by facilitating technological catch-up. In the case of the mobile handset industry, the national R&D project played a key role in making Korea a technological leader. This article reveals that the role of the government was crucial in the development of such technology-intensive industries.

Key words:

• R&D promotion
• technology
• development
• Korea
• role of the state

Notes

¹ There are currently four mobile broadcasting standards – South Korea's DMB, Media FLO of the USA, Europe's DVB-H and Japan's ISDB-T (the latter being only for domestic use). Korea's launch of mobile broadcasting services was a world first (EETimes, 2 January 2006).

² GSM is a digital cellular system built on Time Division Multiple Access protocol and widely adopted as standard in Europe and Asia. CDMA is a multiplexing telecommunication system and also a technology for mobile handsets.