Fostering Hi-Tech Industries in
Jung-Kil Han
CEO & President,
¥°.
Introduction
The global economic and industrial
environment is rapidly changing, as result of swift development in scientific
technique and information technology. Amid globalization
movements of the world economy, 1990s figures show that the foreign direct
investments are increasing among countries (annual average increase rate: 7%)
and total volume of trade is also increasing (annual average increase rate:
14%). As well as, there are distinguished acceleration
of international sharing of labor and technical tie-ups.
The revolutionary developments of IT have
been actualizing the firm network and regional blocs. It also has ended the
drawbacks caused by distance. Under this circumstance, the number of FTAs has dramatically increased since the inauguration of
the WTO. Currently, more than 150 FTAs are in effect.
In fact, regional blocs have tri-polarized the globe into
Due to the momentous changes in the
economic and industrial environment as well as the rapid movement of production
technology and capital has made it necessary for industrialized nations to
develop new industrial strategies. Lack of changes can lead to industrial
hollowing out and the industrial foundation may face collapse, resulting in
long-term economic recession. Therefore, it is necessary to sophisticate
traditional industries by replacing them with high-tech industries, or nurture
high-tech industries in an efficient and systematic way.
In this era of accelerated technological
innovation, the problem of monopoly on technologies is getting serious. The
increasing ratios of high-tech products and shortened production cycle have
made it necessary to concentrate on key technologies.
The world's 100 major business firms expend more than 50 percent of the
global R&D investments.
In this context, industrial or corporate
clusters in the form of, for example, science & techno parks, and the
Regional Innovation System (RIS) are established to seek change or survival.
¥±.
Industrial Clusters and Academia-Industry
Cooperation
¡à What are industrial clusters?
¡Û A
¡°cluster¡± means a group of business enterprises (large, small, and venture
companies) and non-business organizations (universities, research institutes, technoparks, financial and consulting organizations) which
are bound together through networks to create synergy on the creation of
knowledge and innovation of technology.
- Silicon Valley
(the
-
¡à Keys to
Successful Clustering
¡Û Clusters require 1)
geographic concentration, 2) networks of diverse corporations and
organizations, 3) specialization in specific sectors, and 4) stress on
innovation.
- A cluster must
be specialized in a specific sector to gain a competitive edge.
- More
importantly, industrial clusters should serve as mechanisms whereby firms
freely exchange knowledge and information.
∙They can
meet formally at forums and research societies, or informally at research gatherings,
bookstores, etc.
¡Û A
successful cluster requires 1) interactive networking and 2) systematic
cooperation among industries, academia and research institutes.
-
"Networking is going to change everything: the way we live, work, play and
learn." - John Chambers, President and Chief Executive Officer of Cisco
Systems
- The concept of
"technology" has changed in the knowledge-based society: Today,
technology can be defined as "a group of
technologies for a specific purpose (knowledge creation)."
|
∙Manufacturing technology |
¡æ
Technology for
knowledge-based society |
|
|
|
||
|
∙Internet
technology |
|
|
|
|
- Intangible technology
is even more important.
Machinery and equipment ¡´ Design drawings ¡´ Designers
- Technological
innovation should be backed by scientific research.
¡Ø The ten largest enterprises of the
-
∙ The Surrey Research Park in
¡à Necessity of Industry-Academia-Institute
Cooperation for Development of Industrial
Clusters
¡Û A
systematic cooperative partnership among industry, academia and research
institutes is a prerequisite for the development of industrial clusters.
(Global Technology Leaders Forum,
¡Û
Business firms should actively participate in and utilize the
partnership, and universities and research institutes should actively endeavor
to achieve the intended purposes for the three-way cooperative system to
succeed.
- The
cooperation among industry, academia and institutes is a perfect example of a
"win-win" game.
¢¡ The regional innovation system (RIS) needs to be
established through networks and systematic cooperation among firms,
universities and research institutes in the process of evolving into industrial
clustering.
¥². Economic and
Industrial Environment and the Fostering of
High-Tech Industrial Clusters in
¡à
¡Û Economic Importance of
¡Û The industrial
structure of
-
∙Number of
manufacturing firms: 32,718 firms (29.5%),
Employment: 765,000 people (28.2%)
- Manufacturing
firms take up 50.3% of the total industrial production of
- SMBs are mostly involved in manufacturing.
∙99% of Gyeonggi's manufacturing companies are
SMEs and the Province is home to 29.8 percent of the
nation's SMEs.
¡Û
- 37% of the
nation's knowledge-based, industrial production is concentrated in
- R&D
investments by knowledge-based manufacturing companies of
- Knowledge-based
industries, especially IT, BT, mechatronics and
precision machinery industries, are highly concentrated in
¡à
¡Û
¡Û IT
Cluster - the hub cluster
- High
concentration of electronics & IT industries in
- Anyang Venture Valley ¢¦ Samsung Electronics' Complex in Suwon ¢¦ Seongnam-Pangyo
Venture Valley
¡Û
BT Cluster with the highest industrial clustering ratio and increasing
interdependence with the IT industry
- Gyeonggi Technopark (Ansan) ¢¦ Hyangnam Pharmaceutical
Complex (Hwaseong) ¢¦ Gyeonggi Bio Center (Suwon)
¡Û LCD-TFT Cluster (Paju), based on LG-Philips' LCD production
¡Û High-Tech Machinery &
Parts Industrial Cluster to enable traditional industries to become more
knowledge-based
- Gyeonggi Technopark/Banwol Industrial
Complex (Ansan) ¢¦ Sihwa Industrial Complex (Siheung)
¢¦ Bucheon
Technopark
- Custering to deal with industrial hollowing out
¡Û CT (Ceramic Technology)
Cluster near the IT Cluster
- Ceramic
industry cluster (host of the World Ceramic Biennale) and outstanding tourist
attractions
-
<High-Tech
Industrial Clusters and Belts>
¥³. Changing Roles of KSBC
¢Ñ
¡à The key
function of KSBC has been to provide "one-stop service under one-roof,"
through an extensive support network.
<Current Status
of KSBC>
|
▪Building: site area 100,089§³, floor space 48,654§³ (Three basements
and 16 floors) ▪Main
building (offices, TBIs,
lecture & seminar rooms), ▪16 small-
and medium-sized business support agencies, six private specialized services
(accounting/patent/legal/consulting/tax/tourism), 13 venture business
incubators, and three authorized test agencies |
¡Û Performing four roles to carry out the
key function
- Development of technology
and nurturing of knowledge-based, high-tech industry
∙ Open IT
labs, the
- Support for
international business and e-business inroads into overseas markets
∙ Gyeonggi WTC in
- Provide funding,
business troubleshooting, and information service
- Develop expert
human resources to lead the digitalized, knowledge-based society
¡à KSBC's
Attempts to Change Its Roles to Benefit from High-Tech Industrial Clustering
Strategy
¡Û Invigoration of regional
cooperative networking between business enterprises, universities and research
institutes
- Encourage
substantive cooperation among the three parties in the process of technological
development, production and marketing and develop regional bases through the
three-way collaboration
- Currently, 25
industrial families, involving 1,000 SMEs, are being
nurtured.
¡Û Nurturing of
Industry-Specific Mini-Clusters
- Industrial
families are formed to encourage networking and cooperation among business
firms, universities and research institutes, and families of the same
industrial line are encouraged to bind together to create a mini-cluster.
- Establishment of
five mini-clusters is under way.
- The
mini-clusters will be encouraged to bind together to create regional,
innovative industry clusters for the mid to long term.
¡Û
- Innovative IT,
BT and NT R&DB hub to be established in the area of 990,000 square meters
around KSBC
∙It will
provide the infrastructure and application technologies for nurturing high-tech
industrial clusters in
- Key innovative
bases of the R&DB hub
∙Nano
∙Advanced IT
Center - IT
∙Bio Center
- BT
- KSBC plays the
role of providing vision by encouraging innovative bases toward networking and
providing platform service.
<Technological
Strategy and Vision of
<Key Success Elements
of
<KSBC's Roles in Nurturing the
¥³. Conclusion
Under the current global economic
situation, a business-friendly environment has been created and
"industrial clusters" and "regional innovation system
(RIS),"based on a systematic cooperation between industries, universities
and research institutes, have been put into operation to make the province
"a small, yet strong power."
Furthermore,
Economic cooperation and networks are acutely needed in Northeast Asia for
projects to succeed at any level - city,
province, country, or region (