Download - Korea’s Incubation Policy - OECD
Korea’s Incubation Policyfor the
Environmental Venture Companies
Dr. Soung-An, Kwon
Korea Environmental Industry and Technology Institute (KEITI)
| Green Growth Korea |
| 2009 OECD Global Forum on Eco-Innovation, November 4-5 |
Contents
Environmental Industry Overview
Environmental Industry Policy
Comprehensive Support System (KEITI)
Green Industry Complex Cluster
1
2
3
4
| Green Growth Korea |
Definition of the Environmental Industry1-1
Status of the Environmental Industry1-2
Environmental Venture Companies1-3
| Green Growth Korea |
1. Environmental Industry Overview in Korea
1-1 Definition of the Environmental Industry
Definition of the Environmental Industry
Category of the Environmental Industry (OECD/Eurostat)
• The Goods and Service that Can Measure, Prevent, Control, and Minimize the
Environmentally Hazardous Factors [Air Pollution, Water Pollution, Waste,
Noise pollution, Soil Contamination, etc]
• The Goods and Service Minimizing the Environmental Hazard, Pollution, and
Resource Use
• Pollution Management Group
- Manufacturing, Construction, Distribution, Service
• Cleaner Technologies and Products Group
- Manufacturing
• Resource Management Group
- Manufacturing, Construction, Distribution, Service
| Green Growth Korea |
1-2 Status of the Environmental Industry
Year 2003 Year 2005 Year 2006 Year 2007Year 2004
Korea’s Environmental
Industry Market
(CAGR :15.8%)
Korea’s G D P
(CAGR : 5.9%)
| Green Growth Korea |
25,018 EA
26,504 EA
28,198 EA
23,036 EA
No. of Company
(CAGR : 11.8%)
767.1 billion
826.9 billion
865.2 billion
908.7 billion
975.0 billion USD
21.4 billion
23.9 billion
29.2 billion
34.1 billion USD
19 billion
• Environmental Ventures Take Up 2.1% (416) of the Total Ventures (19,068)
• The Sales Revenues of the Most Environmental Ventures are
Between 1 million USD and Less than 5 million USD
Environmental Venture Companies Overall Venture Companies
13 8
73
38
217
38 29
0.00
50.00
100.00
150.00
200.00
250.00
| Green Growth Korea |
2635
311
2097 2311
7401
2112 2201
0
1000
2000
3000
4000
5000
6000
7000
8000Co
mp
an
y N
o
Co
mp
an
y N
o
Sa
les
• Less than $50,000 : 13 Companies
• $50,000 - $100,000 : 8 Companies
• $100,000 - $500,000 : 73 Companies
• $500,000 - $1,000,000 : 38 Companies
• $1,000,000 - $5,000,000 : 217 Companies
• $5,000,000 - $10,000,000 : 38 Companies
• Over $10,000,000 : 29 Companies
• Less than $50,000 : 2,635 Companies
• $50,000 - $100,000 : 311 Companies
• $100,000 - $500,000 : 2,097 Companies
• $500,000 - $1,000,000 : 2,311 Companies
• $1,000,000 - $5,000,000 : 7,401 Companies
• $5,000,000 - $10,000,000 : 2,112 Companies
• Over $10,000,000 : 2,201 Companies
1-3 Environmental Venture Companies
Sa
les
Trend of the Environmental Industry Policy2-1
R&D fund (Eco-Technopia 21 Projects)2-2
Environmental Venture Fund2-3
| Green Growth Korea |
2. Environmental Industry Policy
Environmental Technology Business Incubator (ETBI)2-4
• R&D fund (Eco-Technopia 21 Projects, 2001-2010)
• Environmental Venture Fund (Since 2001)
• Environmental Technology Business
Incubator(Since 2001)
• KEITI established(2009.4)
* KEIST is Merged with KOECO *
• Environmental Industry Promotion Fund
( 8million USD, 2009 ~ )
• ‘Green’ Family Loan (2::9 ~)
• Export Promotion Support (2008 ~ )
2-1 Trend of the Environmental Industry policy
| Green Growth Korea |
Since 2001 Since 2008 -
Past Present
• Issued Strategy for the Promotion of the ET Export (2005.12)
• Green Growth Policy Launched (2008.8)
2-2 R&D Fund : Eco-Technopia 21 Projects
| Green Growth Korea |
Project Overviews
• Goal : Supporting the Development of Core
Environmental Technologies to Put Korea on a Par
with the Advanced Country in this Fields by 2010
•Period : 10 Years(2001-2010)
•Budget : about 1,435 million USD
[1,000 Million USD from the Government]
Description 1st Stage
(2001-2003)
2nd stage
(2004-2007)
3rd stage
(2008-2010)
Goal to Develop
Technologies
Technologies
to Handle
Current
Pollution
Medium and
Long Terms
Strategic
Technologies
Future
Oriented
Sourcing
Technologies
InvestmentCurrency :mill USD
•Total : 1,435
•Government :
1,000
•Private : 435
•Total : 280
•Gov. : 195
•Priv. : 85
•Total : 660
•Gov. : 460
•Priv. : 200
•Total : 495
•Gov. : 345
•Priv. : 150
Key Accomplishment
• Turnover totaled to about 1,559 million
USD as of June 2009 including
- 667 Cases of Product Sales at
Home and Abroad (662 million USD)
- 723 Cases of Installation Works
(about 897 million USD)
2-2 R&D Fund : Eco-Technopia 21 Projects
Successfully Accomplished Projects
| Green Growth Korea |
• Catalyst PM and NOx Reduction System for Diesel Vehicles to Prevent
Harmful Emission
• Accumulated Turnover Reaching to 220 million USD by 2008
Company in charge of this Technology : SK Energy Co., Ltd.
• Substantial Reduction of Dioxin from in Incinerations.
• Contracts Awarded Amounting to about 5.8 million USD including the
Thermal Decomposition Facility at Unjeong in Paju City,
• Playing an Important Role in Generating about 250 million USD-
Worth Business Instead of Import
Company in charge of this Technology : Halla Energy & Environment Co., Ltd.
2-3 Environmental Venture Fund
Environmental Venture Fund
| Green Growth Korea |
• ‘Industry Bank’ Capital : Eco Venture Fund (2::1.4, 6.4million USD)
• ‘Credit Guarantee’ Environmental Venture Fund (2::1.4, 4.:million USD)
• ‘Credit Guarantee’ Environmental Venture Fund (2::2.7, 8.8million USD)
• Estimation of Technology Commercialization at the Investment Banking Institute
• Retrieving the Investment and Capital Gain through IPO, M&A after Investment
Difficulties
Fund
Schemes
• Poor Performance of the Real Investment in the Environmental Industry with the
Created Fund.
• Reasons : *Uncertainty of the Short Term Profit and Profit Rate of the Environmental Industry
*Mismatch of Investment Conditions between a Domestic Environmental Companies
and Fund Operating Companies
• Poor Performance of the Funded Companies’ Commercialization and Business
• Reasons : * Rack of ‘CEO’s Management Skill at the Environmental Venture Companies
* Rack of Ability to Manage Various Risks Under a Bias toward the Technology
Oriented Management
2-4 ETBI* Overview
| Green Growth Korea |
* ETBI : Environmental Technology Business Incubator
Services
Objectives
•Supporting Successful Commercialization of the Environmental Venture Companies
with the New Environmental Technology and Good Prospects by Selecting High-Potential
Environmental Venture Companies and Providing Comprehensive Incubation Services
• Providing Office Room with Charge and Comprehensive Commercialization Service
• Cultivating Non-Tenant Companies by Providing the Remote Support
* Non-Tenant Company: The Office of Company Not located in ETBI
• Supporting and Linking other Incubating Programs Implemented by Relevant Agencies
• Operating the Entrepreneurship Education and Seminar for the Start-up Companies
• Frequent Changes of the management Organization for ETBI
>> Difficulty to Accumulate the Experiences and Know-How for the Management
• Difficulty to Promote Environmental Ventures >>The Long-Term Support Needed for Profit
• Insufficient Support for the Long-Term Budget
Difficulties
2-4 ETBI Overview : Incubation Process
Public Notice
Application Submission
First Review
Secondary Review
Admission Approval(Contract Signing)
Moving In
Notice Period : 4 Weeks
Consultation and
Qualification Check
Screening of
Submitted Documents
Oral Presentation
(Evaluation Committee)
Incubation Period : 3 year
Can be extended within 2 year
After Graduation,
Supporting Service Provided
Target
Companies
Tenant Screening
• Screening Criteria : Entrepreneurship(30), Technology(30), Commercialization Potential(40)
Application Qualification : Founders or Start-up Companies
[Same for the Tenant and Non-Tenant Companies]
• The Companies Engaging in the Technology
Mainly Cultivated by Green Growth Policy
• Environmental Venture Companies
• Certified and Verified Companies with the
New Environmental Technology
• Certified Companies with Eco-Friendly Product • The Companies Participating in the National
Environmental Technology R&D Projects• Other Founders or Start-up Companies
Related to the Green Environmental Industry
Public Notice
Application Submission
Review
Admission Approval(Contract Signing)
Remote Support
Year-round
(Non-scheduled)
Consultation and Frequently
Application Receiving
Evaluation of the
Commercialization Potential
Incubation Period : 1 year
Non-Tenant Screening
Target
Companies
2-4 ETBI Overview : Incubation Support System
Supporting the Participation to the
Promising Exhibitions for the
Technology Development
Making PR Catalogs & Homepages
Supporting the Recommendation for the Technology Evaluation
Supporting to Utilize the networks
such as Venture Capital
Establishing the Supporting System and
Infra for the Tenant Companies
Supporting International Joint Research and the Feasibility Study
Supporting the Certification and
Verification Programs
Supporting Technology Verification
and Certification
Supporting the Technology Development by Linking R&D Projects
Supporting Professional Consulting
Services
Technology, Law, Accounting, Tax
Affairs, Patents
Supporting other Incubating Programs
with Related Organization
Professional
Consulting
Services
for the
Business
Marketing
Support
Incubating Tenant and Non-Tenant Environmental Venture Companies
Supporting the Publication of PR Articles
Supporting to Obtain Policy Fund from Related Organizations for the SMEs
Commercialization
and
Financial
Support
Linking
Other
Commercializ
ation
Programs
| Green Growth Korea |
Commercialization Process3-1
Support of the Environmental Industry Promotion3-2
Support of the Overseas Market Entry3-3
| Green Growth Korea |
3. Comprehensive Support System (KEITI)
Introduction of ‘KEITI’ : Supporting Organization3-4
Support Programs of ‘KEITI’3-5
3-1 Commercialization Process
Develop
ment
Commerci
alization
Model
Proto-
type
Market
TestMass
ProductionMarketing
Enterpris
e growth
Researc
h
R&D Fund ‘Valley of Death’ Venture Capital
0
[ R&D Stage ] [ Commercialization Early Stage ] [ Growth Stage ]
Commercialization
Lifetime(Time)
R&BD Project
(2010-)
Cash flow
Green Growth in Korea
R&D Project
(2001-)
Investment(V/C),
Loan(2009-)
Export Support
(2008-)
| Green Growth Korea |
1. Creating the Steady Growth While Minimizing the Use of Energy and Resource
2. Minimizing the Environmental Impacts such as GHGs Emission
3. Activating the Utilization of Green Technology and Clean Energy as New Growth
Engines
3-2 Support of the Environmental Industry Promotion
Financial Support for
the Environmental
Industry Promotion
Loan for the Business
Management(10 Billion KRW)
- Supporting the Promising 15
Companies through the 9.2 Billion
Loan
Supporting the Loan through
Privileged Financing (50 billion
KRW)
- The low Interest Rate and
Limit increase
Developing the Green Financing
with Financial Companies
Operation of the
National Environment
Information Center
www.konetic.or.kr
Providing Cyber Consulting,
Cyber Exhibition Hall
Providing the Cyber
Environmental Education
Operating the Research
Information Providing System
Operating the Overseas
Environmental Technology
Information Network
Environmental Industry
PR/Marketing Support
Marketing Support for the
Environmental Technology and
Industry
Holding Exhibitions for the
Promotion of Environmental
Technology
- Low Carbon Green Growth
Exhibition (Oct. 20 – 22)
- Incheon World City Festival
Producing and Broadcasting
Special Documentaries on the
Environmental Technology
10 billion KRW : Green Industry Fund
50 billion KRW : Green Family Loan
| Green Growth Korea |
3-3 Support of the Overseas Market Entry and Cooperation
Planning Concrete
Supporting Programs for the
Overseas Market Entry
Concluding the MOU and Holding
the Environmental Cooperation
Seminar with Partner Countries
Inviting Asian Environmental
Specialists and Supporting to
Establish Cooperative Networks
Operating the Advisory Board for
the Overseas Market Entry
Diversifying the Supporting
System for the Overseas
Market Entry
Expanding the Support for the
Overseas market Entry
Supporting the International Joint
Research and the Road Shows for
the Performance
Supporting the Establishment of
the Environment Management
Master Plan
Supporting the Feasibility Study
on the Overseas Environmental
Projects
Establishing the Financing Support
Channel with the Financial Agencies
Strengthening the Marketing and PR for the Overseas Market Entry
Holding the Business Convention by
Inviting Overseas Business Key
Player and Buyer
Supporting the Participation to the
Overseas Strategic Exhibitions
Producing the PR Video for the
Promising Domestic Environmental
Industries
Publishing the Comprehensive
Guidebook to Introduce Domestic
Outstanding Companies and
Environmental Policies
| Green Growth Korea |
Establishing the Basis for the
Environmental Industries’ Overseas
Market Entry
Activating the Overseas
Advertising for
the Domestic Environmental
Industry
3-4 Introduction of KEITI : Supporting Organization
Executive Director for
Environmental Industry
Executive Director for
Environmental Technology
Environmental Management
Department
Pla
nn
ing
& A
dm
inis
tratio
n
Offic
e
Gre
en
Ind
ustry
Pro
mo
tion
Offic
e
Inte
rnatio
nal B
usin
esse
s
Develo
pm
en
t Team
Inte
rnatio
nal B
usin
ess
Co
op
era
tion
Te
am
Eco
-pro
du
cts
Pro
mo
tion
Offic
e
Carb
on
Man
ag
em
en
t Team
En
viro
nm
en
tal M
an
ag
em
en
t
Team
Gre
en
Tech
no
log
y S
trate
gy
Offic
e
Gre
en
Tech
no
log
y
Develo
pm
en
t Offic
e
Ko
rea N
atio
nal
En
viro
nm
en
tal In
form
atio
n
Ce
nte
r
Eco
-Lab
el C
ertific
atio
n O
ffice
En
viro
nm
en
tal T
ech
no
log
y
Verific
atio
n T
eam
En
viro
nm
en
tal S
tan
dard
&
Ce
rtificatio
n M
an
ag
em
en
t
Team
Audit & Inspection Office Assistant Auditor
Certification & Verification
Department
President
2 Executive Directors, 2 General Directors, 2 Departments, 7 Offices, 1 Center, 6 Teams
19
KEITI and KOECO Merged(2009.4)
3-5 ‘KEITI’ Support Programs
Diversifying the Environmental
Industry Information Service
Supporting the Environmental
Industry Management and
Finance
Certifying and Verifying the New
Environmental Technology(ETV)
Operating the Carbon Footprint
Labeling System
Planning National R&D Projects to
Develop the Future Driven Technology
Promoting the Procurement of
Eco-friendly Products
- National Environmental Technology R&D
Project(Eco-Technopia 21)
Operating the Eco-Friendly
Business Designation System
Operating Public Notice System to Disclosure Business Environmental Information
Implementing and Managing
National Environmental Technology
R&D Project
Establishing Basis for the Low
Carbon Society
Environmental
Technology
Development
Supporting
the
Environmental
Industry
Promotion
KEITI
Selecting and Promoting Outstanding Environmental Companies
Operating the Eco-Labeling
(Environmental Mark) System
Certification
Of
Environmental
Technology
&
Products
Activating
the Green
Management
| Green Growth Korea |
Supporting the Specific Environmental
Technology R&D ProjectsPlanning R&BD Projects for the Environmental Industry
Complex Cluster Directive4-1
Complex Facility Plan4-2
| Green Growth Korea |
4. Green Industry Complex Cluster
4-1 Complex Cluster Directive
Creating the High Added-Value by Enhancing the Overseas Market Share through Strengthening the Competitiveness of the Existing Environmental Industry & technology and also by promoting the Industry with the New Technology to lead the Low Carbon Green Growth
Mutual Cooperation through the Establishment of the Cooperative Mechanism for the Development of Environmental Technology between Large and SMEs with Having Core Technology
Laying the Basis for the Technology Development between Tenant Companies
by Creating Another Cluster Inside the Complex and strengthening Mutual Cooperation
Creating the Eco-friendly Landmark and Flagship Projects Pursuing Carbon Free (CO2 Free)
상생협력
*
*
Carbon Free
(CO2 Free)
Creating the
Green Industry
Complex Cluster
*
Mutual Cooperation through the Customized
Technology Development Mechanism between
Large and SMEs
Strengthening Technology
Reinforcing Mutual Cooperation
Strengthening Technology through the
Technical Assistance and Various
Information Sharing
Enhancing Competitiveness
Enhancing Competitiveness in the Domestic
and Overseas Markets through Strengthening
Technology
| Green Growth Korea |
4-2 Complex Facility Plan
1st Landfill
Environmental
Research Complex
Airport Highway
Green Tech.
Research Center
Research and
Experiment BuildingCorp. Research
and Office
Land for Pilot Test
Pilot Scale
Test Bed
Manufacturing
Building
Eco Plaza
Convention
Center
Support Admin.
Building
[ Location : Incheon city, Korea ]
• AREA : 119,300㎡(Located within the Environmental Research Complex)| Green Growth Korea |
| Green Growth Korea |
Thank you.
• Dr. Soung An, Kwon (Korea Environmental Industry and Technology Institute, KEITI)
Tel : +82-2-380-0281 Fax : + 82-2-380-0271
Mail : [email protected]