IntersectoralCollaboration Strategies toward the …Jaemin Park Professor Konkuk University, Seoul May 22, 2014 IntersectoralCollaboration Strategies toward the Development of Creative

Jaemin ParkProfessor

Konkuk University, Seoul

May 22, 2014

Intersectoral Collaboration Strategies toward the Development of Creative

Sectors and Innovation Capability

Jaemin ParkProfessor

Konkuk University, Seoul

May 22, 2014

– the rapid growth and stagnation of Costa Rican Economy

•The rapid growth and recent stagnation are two keywords describing the history of Costa Rican economy

•Many strategies and many different views on how toovercome

•Reflecting growth experience of Korea, KSPpropositions will be developed

Introduction


•The rapid growth and recent stagnation are two keywords describing the history of Costa Rican economy

•Many strategies and many different views on how toovercome

•Reflecting growth experience of Korea, KSPpropositions will be developed


•Reflecting growth experience of Korea, propose somestrategies and programs to bring up innovation andintersectoral collaboration among Costa Ricanuniversities and industries

•In the course,

• Survey relevant theories and Korean experiences

• Assessed to reports and analysis on competency andcollaboration

• Targeted factors enhancing competency and interactionamong university and industry

The Purpose


•Reflecting growth experience of Korea, propose somestrategies and programs to bring up innovation andintersectoral collaboration among Costa Ricanuniversities and industries

•In the course,

• Survey relevant theories and Korean experiences

• Assessed to reports and analysis on competency andcollaboration

• Targeted factors enhancing competency and interactionamong university and industry


•Extensive search found that the brightest minds ininnovation studies point out three key factors insuccessful intersectoral collaboration

• absorption capacity and innovation actors’ own capabilitiesare important (Cohen, Levinthal, Kim)

• the social factors and institutional arrangement andagreement (Freeman, Lundvall, Eztkovitz)

• the vibrant flow of information and knowledge (Kline,Rosenberg, Chesbrough)

What we have learned from


•Extensive search found that the brightest minds ininnovation studies point out three key factors insuccessful intersectoral collaboration

• absorption capacity and innovation actors’ own capabilitiesare important (Cohen, Levinthal, Kim)

• the social factors and institutional arrangement andagreement (Freeman, Lundvall, Eztkovitz)

• the vibrant flow of information and knowledge (Kline,Rosenberg, Chesbrough)


•World data shows innovation capacity of Costa Rica isimproving.

•Costa Rica has jumped from “efficiency-drivenstage(level 3)” to “transition 2-3 stage(level 4)”

• WEF reports shows while Costa Rica has high score on healthand primary education; market size, innovation, financialmarket development, infrastructures are fairly low compare tothe average “innovation-driven” economies

• Improving overall infrastructure is exigent

Current State of Innovation Capacity


•World data shows innovation capacity of Costa Rica isimproving.

•Costa Rica has jumped from “efficiency-drivenstage(level 3)” to “transition 2-3 stage(level 4)”

• WEF reports shows while Costa Rica has high score on healthand primary education; market size, innovation, financialmarket development, infrastructures are fairly low compare tothe average “innovation-driven” economies

• Improving overall infrastructure is exigent

World Economic Forum says


•Also, Costa Rica ranks first in Latin America forUniversity-Industry collaboration (34th in the world)

• “Costa Rican government has huge efforts for achievingeffective NIS through intersectoral collaborations (WEF, The

Global Competitiveness Report)”

Current State of Collaborative Activity


•Also, Costa Rica ranks first in Latin America forUniversity-Industry collaboration (34th in the world)

• “Costa Rican government has huge efforts for achievingeffective NIS through intersectoral collaborations (WEF, The

Global Competitiveness Report)”

World Economic Forum says


•In other words, data shows Costa Rica owns greatpotential

•However, some weaknesses and imbalances amongsectors are also observed

• Tertiary population is low

• Only 13% of university students major in Science &Engineering (less than surrounding nations)

• Most of R&D budget and academic-industrial cooperation islimited in PROPYME

• Total Investment on R&D is only 0.4% of GDP

• Competency gap between local firms and FDI firms are large

Current State of Collaborative Activity


•In other words, data shows Costa Rica owns greatpotential

•However, some weaknesses and imbalances amongsectors are also observed

• Tertiary population is low

• Only 13% of university students major in Science &Engineering (less than surrounding nations)

• Most of R&D budget and academic-industrial cooperation islimited in PROPYME

• Total Investment on R&D is only 0.4% of GDP

• Competency gap between local firms and FDI firms are large


•From these analysis, could conclude that biggestweakness in intersectoral collaboration lies in theimbalances in innovation capabilities between sectors

• FDI-driven sectors vs. local sectors

• Foreign MNCs vs. domestic SMEs

Diagnosis


•From these analysis, could conclude that biggestweakness in intersectoral collaboration lies in theimbalances in innovation capabilities between sectors

• FDI-driven sectors vs. local sectors

• Foreign MNCs vs. domestic SMEs


•Coordination and leadership efforts are less thanenough

•Furthermore, lagging national R&D budget and lowinnovation in local firms hampers intersectoralcollaboration

Diagnosis


•Coordination and leadership efforts are less thanenough

•Furthermore, lagging national R&D budget and lowinnovation in local firms hampers intersectoralcollaboration

6 Strategies to be considered

1. Create adequate incentive schemes to promoteresearch and innovation in domestic companies

2. Explore universities as “innovation centers” and“technology warehouse” for industries

3. Implement public programs bringing universities andindustries together constantly

1. Create adequate incentive schemes to promoteresearch and innovation in domestic companies

2. Explore universities as “innovation centers” and“technology warehouse” for industries

3. Implement public programs bringing universities andindustries together constantly

4. Find a way to raise national R&D investment and R&Dfunds for local SMEs

5. Government must solve coordination failure problem

6. Promote a cultural change in private sectors anduniversities.

• University needs to recognize technology transfer is theirrole

• Firms should share their problems with universities andresearch centers

6 Strategical Approaches

4. Find a way to raise national R&D investment and R&Dfunds for local SMEs

5. Government must solve coordination failure problem

6. Promote a cultural change in private sectors anduniversities.

• University needs to recognize technology transfer is theirrole

• Firms should share their problems with universities andresearch centers


•Korea Small Business Innovation Research(KOSBIR)programs

• Was implemented to overcome lack of R&D funds for SMEs

• It encourages ministries and public sectors to invest on SME’sR&D project

• It enforced 14 public sectors to invest a fixed potion of ownR&D budget

⇒ In consequence, government R&D support for SME’s hasbeen largely increased

Korean Cases(I)


•Korea Small Business Innovation Research(KOSBIR)programs

• Was implemented to overcome lack of R&D funds for SMEs

• It encourages ministries and public sectors to invest on SME’sR&D project

• It enforced 14 public sectors to invest a fixed potion of ownR&D budget

⇒ In consequence, government R&D support for SME’s hasbeen largely increased


•Engineering House Program

• Originally designed to give on-site R&D experience forundergraduate students

• Later, R&D projects from private sectors are attracted and itbecome a contract research scheme using university facilities

• By acting like a satellite research lab for firms

⇒ It can compensate lack of research facility and physicalaccommodations of SMEs

Korean Cases(II)


•Engineering House Program

• Originally designed to give on-site R&D experience forundergraduate students

• Later, R&D projects from private sectors are attracted and itbecome a contract research scheme using university facilities

• By acting like a satellite research lab for firms

⇒ It can compensate lack of research facility and physicalaccommodations of SMEs


•Sector Council - Systematization of the collaborationnetwork

• Was originated from “Sector Skills Council (SSC) in the UK

• The benefit of sector council is it bands firms altogether andoperates sector-specific collaboration with universities

• The organization of Sector Council makes the formation ofintersectoral collaboration much easier

⇒ Allows stable linkages with universities

Korean Cases(III)


•Sector Council - Systematization of the collaborationnetwork

• Was originated from “Sector Skills Council (SSC) in the UK

• The benefit of sector council is it bands firms altogether andoperates sector-specific collaboration with universities

• The organization of Sector Council makes the formation ofintersectoral collaboration much easier

⇒ Allows stable linkages with universities


•The best collaborative learning practice – Co-opscheme

• Bill Gates highly praised that “it is the world BEST curriculum”

• The scheme incorporate 6 months internship program intoregular curriculum

• So students have to take in-class lectures and field internshipback and forth

Korean Cases(IV)


•The best collaborative learning practice – Co-opscheme

• Bill Gates highly praised that “it is the world BEST curriculum”

• The scheme incorporate 6 months internship program intoregular curriculum

• So students have to take in-class lectures and field internshipback and forth

⇒ University of Waterloo program allows around 16,000students per a year global access to the companieslike MS, Google, Apple, etc

⇒ It becomes a leading incubator in North Americanregion

Korean Cases(IV)

⇒ University of Waterloo program allows around 16,000students per a year global access to the companieslike MS, Google, Apple, etc

⇒ It becomes a leading incubator in North Americanregion


•Securing high quality technicians and engineers –National Qualification System (NQS)

• Korean government operate a National QualificationSystem(NQS) last 30 years

• Among them, 512 is technology qualifications includingProfessional Engineer(PE)

• Also, it comes with National Competency Standards(NCS)which was developed in cooperation with industries

Korean Cases(V)


•Securing high quality technicians and engineers –National Qualification System (NQS)

• Korean government operate a National QualificationSystem(NQS) last 30 years

• Among them, 512 is technology qualifications includingProfessional Engineer(PE)

• Also, it comes with National Competency Standards(NCS)which was developed in cooperation with industries


•It is tri-lateral collaboration effort designed to deliverhigh qualify technician and engineers

• Industry sector provides competency information required forcertain occupation

• University designs educational training programs according tostandards

• Government designs NCS and NQF and supports themfinancially

⇒ So it allows efficient quality control for technicians andengineers from the outset

Korean Cases(V)


•It is tri-lateral collaboration effort designed to deliverhigh qualify technician and engineers

• Industry sector provides competency information required forcertain occupation

• University designs educational training programs according tostandards

• Government designs NCS and NQF and supports themfinancially

⇒ So it allows efficient quality control for technicians andengineers from the outset

Recommendations

•Under this scheme, participating institutes have tosecure fixed rate of (R&D) budget

•So it can create a funds for domestic SMEs

•Modify original KOSBIR scheme allowing universitiesand research labs to be part of joint projects

1. Initiate Costa Rica’s own SBIR program•Under this scheme, participating institutes have tosecure fixed rate of (R&D) budget

•So it can create a funds for domestic SMEs

•Modify original KOSBIR scheme allowing universitiesand research labs to be part of joint projects

Recommendations(II)

•To do this universities, local companies, FDIenterprises in a leading sector(e.g., biohealth,pharmaceuticals) should be attracted as a member

•Initially sector councils support education and training•Expand its activities to improve industry’scompetitiveness and collaborative activities

2. Support formation of Sector Councils

•To do this universities, local companies, FDIenterprises in a leading sector(e.g., biohealth,pharmaceuticals) should be attracted as a member

•Initially sector councils support education and training•Expand its activities to improve industry’scompetitiveness and collaborative activities

Recommendations(III)

•Government have to support the adoption of co-opprogram

•It should support establishing a co-op center in majoruniversities

•Also, government needs to participate searchingprocesses for global cooperators

3. Support installation of co-op programs

•Government have to support the adoption of co-opprogram

•It should support establishing a co-op center in majoruniversities

•Also, government needs to participate searchingprocesses for global cooperators

Recommendations(IV)

•Enhancing R&D activities of domestic companies isurgent

•SMEs are still incompetent to operate their own R&Dlabs.

•Government must supply the necessary incentiveswhen SMEs designate university labs as “Cite Labs”

•This scheme can compensate the lack of absorptioncapacity in domestic companies

4. Support company-affiliated university research lab

•Enhancing R&D activities of domestic companies isurgent

•SMEs are still incompetent to operate their own R&Dlabs.

•Government must supply the necessary incentiveswhen SMEs designate university labs as “Cite Labs”

•This scheme can compensate the lack of absorptioncapacity in domestic companies

Recommendations(V)

•Adopting National Qualification Systems(NQS) intechnology field will help securing high qualityengineers

•In addtion, developing National CompetencyStandards(NCS) allows the needs of industry can beapplied immediately to the curriculum

•Therefore, government can effectively control thequality of engineers and technicians

•Also the qualification system can be linked withAcademic Accreditation system

5. Design Costa Rica’s own National Qualification System

•Adopting National Qualification Systems(NQS) intechnology field will help securing high qualityengineers

•In addtion, developing National CompetencyStandards(NCS) allows the needs of industry can beapplied immediately to the curriculum

•Therefore, government can effectively control thequality of engineers and technicians

•Also the qualification system can be linked withAcademic Accreditation system

Final Comments

•Costa Rica is a country with a great potential.

•The main reason of lagging sectoral collaboration iscompetency gaps and lack of experience

•However, by supporting interactions and implementingcollaborative scheme, the problem can be resolve.

•Also, motivating private sectors and mobilizing moreresources for innovation will raise competency level ofdomestic companies

•Costa Rica is a country with a great potential.

•The main reason of lagging sectoral collaboration iscompetency gaps and lack of experience

•However, by supporting interactions and implementingcollaborative scheme, the problem can be resolve.

•Also, motivating private sectors and mobilizing moreresources for innovation will raise competency level ofdomestic companies

Final Comments

•However, changing university from “ivory tower” to“entrepreneurial one” may be a huge task

•Conflicts between ministries and agencies will bedeepened during the reformulation.

•By overcoming these obstacles, Costa Rica will be “the1st innovation-driven” country in the Central America.

•However, changing university from “ivory tower” to“entrepreneurial one” may be a huge task

•Conflicts between ministries and agencies will bedeepened during the reformulation.

•By overcoming these obstacles, Costa Rica will be “the1st innovation-driven” country in the Central America.

Documents

IntersectoralCollaboration Strategies toward the …Jaemin Park Professor Konkuk University, Seoul May 22, 2014 IntersectoralCollaboration Strategies toward the Development of Creative