Capacity Building for National/Regional Innovation in LAC Countries

1. Capacity Building for National/Regional Innovation in LAC Countries Presented at The Third Meeting of Ministers and High Authorities of Science and Technology of OAS Panama City, Panama November 17, 2011 Yongsuk Jang, Ph.D. Research Fellow jang@stepi.re.kr

2. Korea's Economic Development, 1953-2010 $20,759 (2010) • 2nd Poorest Country • 11th Largest Economy $67 (1953) Source: The Bank of Korea • 1953-1970: Per Capita GNP (current US$, 1975 base year) • 1971-2010: Per Capita GNI (current US$, 2005 base year)

3. Roles of STI Policy in Korean Development Paradigm Change Imitation Catching-Up Innovation Endogenous Innovation

4. S&T Leadership Technology Catching-Up Institutional Building 1987 1981 1971 1967 1962 1982 1997 2004 2008 1992 1991 1966 Industrial Generic Technology Development Program (IGTDP) Korea Advanced Institute of Science (KAIS) 1st 5-Year Economic Plan Current Admin. MEST & MKE Financial Crisis Deputy Prime Minister of MOST (OSTI) Information and Communication R&D Program (ICRP) Ministry of S&T (MOST) National R&D Program (NRP) Korea Institute of S&T (KIST) Technology Development Promotion Act Highly Advanced National Project (HAN) Evolution of Korean STI Policy

5. Industrial Shifts: Demands and Supplies “Select and Focus” Demand Side Light Industries Heavy Industries Assembly & Processing Industries IT Industries New Growth Engines • Self-Sustain • Import-Subs. • Mfg. Capacity • Industrial Seeds • Open Market • Higher Value-added • Industrial Diversification • Import Protection • Export-Orient • Import Tech. • Tech. Capability • Expand R&D • Skilled HR • Demand-oriented Innovation • Endogenous Tech. Supply Side

6. Trends of Public vs. Private R&D Investment in Korea Focused on Market ! Source: MEST (www.mest.go.kr)

7. The Core is Self-Sustaining Capacity Building • The Core of the Success = Capacity Building • Always focused on Self-sustaining Capacity Building • Learning, Absorbing and Internalizing Imported Tech. • Now focusing on Endogenous Innovation Capacities • Knowledge Sharing • Foreign Aid helped Korean Development a lot • Became the only Country transformed from ODA Recipient to Donor Country by joining the OECD/DAC in Nov. 2009 • Time to Share Rich Korean Experiences • Korean Strategy to Share Knowledge • Focus on Self-sustaining Capacity Building for Development • “Teach Fishing rather than Give Fishes out” => STI • Integrate the Korea’s Development Experiences • As Part of Science Diplomacy

8. Core Components of Self-sustaining Capacity Building Science, Technology, & Innovation Strategy Strategy • Feasibility Study • Institutional Building (incl. Laws) • S&T Basic Plan • HRD Basic Plan • Regional Dev. • Monitoring & Evaluation Software • S&E Higher Ed. • Technical/Research Training • S&E Dispatch/ Hosting • Teacher Training • Facility Mgt. • R&D Activities Hardware • Research Institutes • S&T Universities • Lab. Install • S&T Facilities • S&T Equipments • Maintenance Capacity Building for Self-sustaining Dev. S&T Infrastructure Building S&T Human Resources Dev.

9. A Proposal to IADB • Establish regional think tanks in selected LAC regions • Share Korean Experiences through Coaching • Develop Specific Innovation Projects • Create a LAC Innovation Network (LACIN) Self-Sustaining Capacity for National/Regional Innovation

10. Program Structure Coaching

11. President Prime Minister MKE Ministry of Knowledge Economy MEST Ministry of Education, Science and Technology KRCF Korea Research Council of Fundamental S&T (13 GRIs) NRCS The National Research Council for Economics, Humanities and Social Sciences KOCI Korea Research Council for Industrial S&T (13 GRIs) STEPI Science and Technology Policy Institute STEPI: A Global Think-Tank A Government-sponsored Research Institute (GRI) for S&T Policy

12. STEPI: Roles and functions • Identifies policy issues to effectively deal with future challenges • Conducts research and analyses on the issues pertaining to science, technology and innovation • Provides government agencies with policy ideas and suggestions for the promotion of innovation • Suggests strategic options in technology development for the government as well as industries • Collaborates with Global and Local Partners for Better STI Strategies

13. Next Steps • IADB’s New Guidelines for Technical Cooperation (TC) • Require the Country and IDB’s Country Office to Prepare “Country Programming Document (CPD) with a list of activities • So this proposal should be included in your Country’s CPD • If interested; • Acquire detailed information on this Proposal (A full Proposal is under development), if interested • Contact your IDB corresponding line Ministry, normally Ministry of Finance or Planning • Make sure them to include this proposal in your CPD • Alternatively, Send me an official request and non-objection Letter signed by the IDB corresponding line Ministry, which will be accompanied with the submission of full proposal • Korea will also Support • IDB’s Korea Trust Fund (KTF) • Other Funding Sources

14. Thank You! For Further Comments & Questions; Yongsuk Jang jang@stepi.re.kr