Future Agenda for Cluster Policy in Korea: Towards Global Collaboration Cluster Program

in KICOXJun Yeup Kim

Special Plenary Session: Clusters in Korea: Development Process and Achievement

FUTURE AGENDA OF CLUSTER POLICY IN KOREA: TOWARDS GLOBAL COLLABORATION CLUSTER PROGRAM IN KI-COX

Prof. Jun Yeup Kim

Building capacity in sustainability? Hardware + software building in regional

characteristics & sectoral approach? Talents? (Mathew 25:14-30) Collective Learning system? Entrepreneurship? Delivery mechanisms? Role of government organization? Cluster for Development?

Core Issues in Clusters?

The ‘spatial organization’ in local economic development refers to the relationship between firms and their environment, encompassing all the institutions competing and collaboration (Alchain, 1950)

Regional and geographical level? Spatial organization ~ Spatial clustering? - 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?

Spatial organization

Direction of cluster policy in Korea• The ultimate goal is

to strengthen the industrial competi-tiveness through enhanced intercon-nection between the industry and the technology R&D sector in the region

SHIFT FROM INDUSTRIAL COMPLEX MO-DEL TO INNOVATIVE CLUSTER PROGRAM IN KI-COX

Overview of Korean cluster model

Cultivation of World-class Industrial Clusters that drive development of Korean EconomyVision

Objec-tives Innovative Cluster with

Open Network

Mature (’13~’16)

Construction of industrial Cluster base

Formation (’05~’08)

Individual Industrial Com-plex

(7→12)Scope

Activation of Cluster Net-work

Growth (’09~’12)

Regional Industrial Complex(25 Hub, 168 Linkages)

National Industrial Com-plex

(All industrial complex)

Korean cluster modelCustomized development Strategy

Pan regional industrial cluster

Activate global network

Strengthen Network Activ-ities

Autonomous industrial ecosystem

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

Activi-ties Pan regional cluster Strengthen R&D Capability (Theme Cluster activities)▷

Enterprise consulting Program ▷ SMEs Business Strategy, Financial Plan, Technol-ogy 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%

Chungnam

12%

88%

100%

0%

29%

71%

31%

69%

83%17%

Kyungbuk

Cheonnam

Jeju

Cheonbuk

Kungnam

Gwangju

Output in elsewhereOutput in Industrial Cluster

* 2012 년 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 )

1. Mini-cluster2. Theme Cluster3. New Direction of Cluster Policy

Feature of Korean Cluster Model

Mini clusters refer to small group alliances of SMEs, universities, research institutes, support-ing agencies and local government categorized by the type of special sectors (e.g. engines, ma-terials ..) in strategic business or technological goal

What is mini clusters?

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%

대학기업

지원기관연구소

대상단지 확대

광역 개편

10,560(17.6%)

정부정책 및클러스터사업 설명회1,802(3.0%)

교류회

7,686(12.8%)

1,589(2.7%)

5,222(8.7%)

기술세미나기타 ( 홍보등 )

1,718(2.9%)

지원기관협의회

정기회의 평가위원회

27,107(45.3%)

4,205(7.0%)

과제발굴회의 시제품제작

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 Sup-

portsN/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 in-creased23% and through confer-ence of project is the most impor-tant

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 for building innovative indus-trial ecosystem- Through ITC convergence technology innovation and fostering region industry cluster

(2013. 9. 25 )Theme Cluster KICK OFF

Network

Cluster in Open In-novation

Regional & Global Cluster

SpecializationCompetitive

Cluster

Pan-Regional Cluster Theme Cluster

Theme 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

18

Daemo Engineer-ing

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 Associa-

tion

Firm 5

Firm 6 Firm 7

Firm 8

Construction Pressure Breaker Engineering system

Key Net-work

Open Network Hub

Daemo Firm 13Firm 12Firm 14

Strategy (Ⅲ)

Theme Cluster Project – Network Structure

Project: Construction equipment in Attachment System Development

19

Quick Coupler Security System Technology Development

Quick Coupler Cast Steel Mate-rial

Marketing Information

Network Activities – First year achievements

Sharing Net-work

Sharing tech. Sharing biz ideas

1 2 3동반성장 Win-win Global Network Best practices

▪ 소규모 네트워크 구체화 : ㈜한국엠엘 기획회의

- 향후 , 분기 1 회 정기모임- 참여기업 중심의 MC 로 발전시켜 성장의 발판 마련 ~

▪ 글로벌 기술 교류 회 ( 미국 라스베가스 전시 ) - BTI 사 MOU 체결- BXR C 시리즈 본격 출시 ~- 현장계약 및 수주상담 진행 : 6 건 U$1,490,000

▪ KICK OFF (13.9.25)

• 소식지 발간 • 언론 보도 • 성과보고회

20

BTI 사 MOU 체결 소규모 네트워크 구체화 기술세미나 / 초광역 교류 회

기업애로해결 간담회 협력기업 컨설팅 지원 성과보고회 소식지 발간

Vision

Aims

Strategies

VisionEstablish 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)

• From Enterprise Perspective – Through Knowledge Spillover to achieve Innova-tion

• 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

Objectives

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

InternationalFunding org.

EU, WB funding

Key FirmsTheme Cluster

TCIAsia Chapter

KICOXNetwork

EU

FK

London Paris

Oslo Milan

Asia

Singapore

Beijing Taipei

TokyoDaegu

America

Sao Paulo

Monterrey

Toronto

Bogota

SiliconValley

InformationNetworkCentre

Tech-Promotion

CentreAutomotive

ICTBio

MaterialsMachinery Tech-

DevelopmentCentre

Governmentresearch centre

KICOXKSON

Industrial Innovation

Forum

StrategyImplementation

Centre

KnowledgeSharing Centre ADB

WB

UNIDO

IDB

Global Open Networks

• Sustainability?• Bottom-up and need based approach• Effective ‘long-term’ relationships with global

and regional stakeholders• Efficient platform system building - Entrepreneurship and open innovation - Global, National, regional level inter-firm networking and knowledge spillover - Government Institutional Setting: knowledge diffusion

Need to consideration

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

JUN YEUP KIMJUNYEUP@KHU.AC.KR

THANK YOU