Future Cluster Policy in Korea: Towards Global Collaboration Cluster ProgramJun Yeup Kim

13 November 2014

FUTURE CLUSTER POLICY IN KOREA:TOWARDS GLOBAL COLLABORATION CLUSTER PROGRAM

PROF. JUN YEUP KIM

ISSUES IN CLUSTER?

Building capacity in sustainability

Hardware + software building in region-centric

approach or sectoral approach?

Talents? (Mathew 25:14-30)

Delivery mechanisms?

Cluster and the role of government organization ?

PRODUCTION, INFORMATION COSTS AND

ECONOMIC ORGANIZATION

“Conceiving competition as the exchange of knowledge or information about qualities indicates that the firm is device for enhancing competition among set of input resources” (Alchain and Demsetz, 1972, p.795)

- These input resources can foster collaboration!

- Hence, the main idea is about the relationship between firms and their environment, encompassing all the institutions competing and collaboration

THE CONTEXT OF CLUSTER POLICY IN KOREA

Regional and Industry level?

Role of Government Organization?

- Dynamic brokerage process of regional and industrial

clustering

- Spill over of technological activity become more useful

when there are networking coordinators in nodes and

linkages

- Trinity of Cluster policy in Korea?

The ultimate goal is to

strengthen the

industrial

competitiveness

through enhanced

interconnection

between the industry

and the technology

R&D sector in the

region

THE DIRECTION OF CLUSTER POLICY IN KOREA

SHIFT FROM ‘INDUSTRIAL COMPLEX’ TO

‘INNOVATIVE CLUSTER’ IN KICOX POLICY

OVERVIEW OF KOREAN CLUSTER MODEL

Toward World-class Industrial Clusters that drive development of Korean

EconomyVision

Objectives Innovative Cluster with Open Network

Mature (’13~’16)

Construction of industrial Cluster base

Formation (’05~’08)

Individual Industrial Complex (7→12)

Scope

Activation of Cluster Network

Growth (’09~’12)

Regional Industrial Complex(25 Hub, 168 Linkages)

National Industrial Complex(All industrial complex)

Korean cluster modelCustomized development

StrategyPan-Regional industrial cluster

Activate global network

Strengthen Network ActivitiesAutonomous grassrootindustrial ecosystem

Construction of Industry-University-Research Institute Networking ▷ Mini-cluster activities

Activities Pan-Regional cluster policy ▷ Strengthen R&D Capability (Theme Cluster activities)

Enterprise consulting Program ▷ SME’s Business Strategy, Financial Plan, Technology Development

자료) 한국산업단지공단(www.e-cluster.net)

17 TH TCI GLOBAL CONFERENCE | CREATING SHARED VALUE THROUGH CLUSTERS FOR A SUSTAINABLE FUTURE

IMPORTANCE OF INDUSTRIAL CLUSTERS IN KOREA

Regional Manufacturing output share in Industrial Cluster is average 69%

42%58%

10%

90%

10%

90%

48% 52%

27%

73%

17%

83%

Inchon

Deajeon

Daegu

Busan

Ulsan

55%

45%

Gyunggi

57%43%

Kangwon

40%

60%

Chungbuk

48%52%

Chungna

m

12%

88%

100%

0%

29%

71%

31%

69%

83%

17%

Kyungbuk

Cheonnam

Jeju

Cheonbu

k

Kungnam

Gwangju

Output in elsewhere

Output in Industrial Cluster

* 2012년 GDP 중 제조업 비중 28%(지역별 비중 : 서울 6%, 부산 19%, 대구 22%, 인천 26%, 광주 27%, 대전 17%, 울산 56%, 경기 33%, 강원 10%, 충북 39%, 충남 51%, 전북 27%, 전남 36%, 경북 47%, 경남 43%,

제주 3%) 자료) 통계청(지역계정, 광업∙제조업조사, 국가산업단지산업동향)

FEATURE OF KOREAN CLUSTER MODEL

1. Mini-cluster

2. Theme Cluster

3. New Direction of Cluster Policy

WHAT IS MINI CLUSTERS?

Mini clusters refer to small group alliances of SMEs,

universities, research institutes, supporting agencies

and local government categorized by the similar type

of special sectors (e.g. engines, materials ..) in

strategic business or technological goal

Theme clusters are based on specific theme of

specialized production to collaborate among different

sectors’ firms and institutes

FORMATION OF MINI CLUSTER, INTER-FIRM NETWORK

ACTIVITY AND PROJECT SUPPORT

The number of MC is

when peak of 81

and then transform

in 2013, 69 MC

In 2013, 69 Mini Clusters create 59,900 network activities and 7,500 members

of Industry-University-Research Institute completed 17,700 projects

7차 8차

70 69

9차

34

3차 4차 6차5차

81

54

39

77

2차

55

1차

35

9차

7,537

10%

3%

13%

8차

3%

10%

4%

12%

73%

5,987

11%

74%

7,182

72%

11%

13%

4%

13%

5차

5,413

7,087

11%

6차

73%

7차3차

5%

2차

69%

5%19%

70%

15%

69%70%

5,153

3,120

8%6%

2,706

4%

17%

67%

4차

11%

13%

11%5%

3,149

1차

5%

19%

대학

기업

지원기관

연구소

대상단지확대

광역 개편

10,560

(17.6%)

정부정책 및클러스터사업 설명회

1,802

(3.0%)

교류회

7,686

(12.8%)

1,589

(2.7%)

5,222

(8.7%)

기술세미나

기타(홍보등)

1,718

(2.9%)

지원기관협의회

정기회의평가위원회

27,107

(45.3%)

4,205

(7.0%)

과제발굴회의시제품제작

2,975

(16.8%)

기관연계

마케팅

5,170

(29.1%)

R&D

2,005

(11.3%)

산업재산권

기타

3,906

(22.0%)

120(0.7%)

1,644

(9.3%)

1,935

(10.9%)

교육

Mini Cluster formation

Number of MC member

N/W 활동 Project SupportsN/W Activities

MC membership is

increasing trend

average per year 13%

in 2013, number of

member 7,537

The number of N/W

activities 59,889, Ave.

per year

increased23% and

through conference

of project is the most

important

Total number of

project support

17,755, Marketing

skill support is the

highest (total share

29.1%)

자료) 한국산업단지공단 자료 기반 KnowledgeWorks 분석

ORGANIZATION OF SIG WITHIN METAL AND

MATERIAL MINI-CLUSTER IN BANWOL SIHWA

ORGANIZATION OF SIG WITHIN METAL AND

MATERIAL MINI-CLUSTER IN BANWOL SIHWA

Background of Theme Cluster

16

TechnologyDevelopment

Firm-led N/W

Theme Cluster

(2005. 8. 26) Sub Mini Cluster KICK OFF

▶ Sustainable development of clustered firms &Fostering regional industry development ~

- Sustainable indigenous cluster

- Through ITC convergence technology innovation and fostering region

industry cluster

(2013. 9. 25 )Theme Cluster KICK OFF

Network

Cluster in Open

Innovation

Regional & Global Cluster

SpecializationCompetitive

Cluster

Stakeholders

Project Cost

Mini Cluster

Business Area

Location

Global N/W

Daemo Engineering, 15 related firms, university, Government Agency

1.3 million USD

Open Network

Construction Equipment Attachment

Gyunggi Province, National Industrial Complex

USA CONEXPO Potential customer group meeting

Vision Through Global Network to foster Construction Engineering Clusters

Project Period 2013. 9.1 – 2015. 8.31

Total SH 18

Construction Engineering Attachment

Construction Equipment IT Technology & Safety Device Attachment

The Case of Theme Clusters in Korea

17

Daemo Engineering

Strategy (Ⅰ)Jinki

Firm 1

Firm 2Firm 3

Firm 4

Polytechnic Univ.

R&D(Ⅱ)Jungwoo

R&D(Ⅰ)Daemo

Firm 9

Firm 10 Firm 11

Polytechnic Univ.

Strategy (Ⅱ)Korea Construction Association

Firm 5

Firm 6 Firm 7

Firm 8

Construction Pressure Breaker Engineering system

Key Network

Open Network Hub

Daemo Firm 13

Firm 12Firm 14

Strategy (Ⅲ)

Theme Cluster Project – Network Structure

Project: Construction equipment in Attachment System Development

18

Quick Coupler Security SystemTechnology Development

Quick Coupler Cast Steel Material

Marketing Information

Vision

Aims

Strategies

Vision

Establish Global Partnership to foster innovative clusters that drive the Development of Korean Economy

Strategies

•Strengthen global & local linkages

•Open innovation & cluster

•Triple Helix Relations (University-Industry-Gov.)

•Regional Innovation system

Aims• Local Buzz (localized N/W) and Global pipeline• Creative and convergence of industrial cluster• Global Partnership and Open Networking

New Direction of Cluster Policy in Korea

New Cluster Policy: Visions

18

KNOWLEDGE SPILLOVER OPEN NETWORK (KSON)

Objectives

From Enterprise Perspective – Through Knowledge Spillover to achieve Innovation

From Ministry of Commerce or KICOX - Core Strategy need to reflect Industry’s opinion

Each Innovative Actors sharing Key Issues in Technology and Business Strategy

Through KSON identify technology needs – Demand-oriented R&D program

Special Interest Group (SIG) - Participate in various technology fields

In these fields, Firms, Universities, Research Centers, Financial Institutes

– Semi-conductors, Advanced Material, Bio Science, Urban Planning, Resource Efficiency, Digital Service, Electronics Sensor & Photonics, Energy, Food Supply, Healthcare, High value Manufacturing, ICT, Space, Automotive equipment

On-line portal or off-line sharing information and workshop

Innovation KSON

– Through collaborating with Enterprise, University, and Government Organization to

set up National Innovation Policy Agenda

Advisory Group in KSON

– Young Professional Researchers’ Networking Group - to foster knowledge spillover

(e.g. Industrial Innovation Forum – main member group is CEO KICOX, Key

members of Korean Industrial Cluster Academic Society)

KSON

Operation Examples

International

Funding org.

EU, WB funding

Key Firms

Theme Cluster

TCI

Asian Chapter

KICOX

Network

EU

FK

London Paris

Oslo Milan

Asia

Singapore

Beijing Taipei

TokyoDaegu

America

Sao

Paulo

Monterrey

Toronto

Bogota

Silicon

Valley

Information

Network

Centre

Tech-

Promotion

Centre

Automotive

ICTBio

MaterialsMachinery Tech-

Development

Centre

Government

research centre

KICOX

KSON

Industrial

Innovation

Forum

Strategy

Implementation

Centre

Knowledge

Sharing Centre ADB

WB

UNIDO

IDB

Global Open Networks

NEED TO CONSIDERATION

• Sustainability?

• Bottom-up and need based approach

• Effective ‘long-term’ relationships with global and regional stakeholders

• Efficient communication system building - Government Institutional Setting

- Global and National level coordination

4. Next step for Cluster Evolution:

Korean Case

Sustainable

Development

(Temporal)

Resiliency

Anchor Industry

S-M-A-R-TCluster Strategy

Sustainability

Multi-Hub

Talent&Technology

Multi-Hub & Spoke

(Spatial)

Embeddedness

(Knowledge, Technology

Resource)

Possibility of Recovery

(Cluster Eco-system)

Creative asset

(Talent-intensive)

Lee and Koo (2010)

17 TH TCI GLOBAL CONFERENCE | CREATING SHARED VALUE THROUGH CLUSTERS FOR A SUSTAINABLE FUTURE

JUN YEUP KIMJUNYEUP@KHU.AC.KR

THANK YOU