{"id":2206504,"date":"2024-09-16T18:18:49","date_gmt":"2024-09-16T09:18:49","guid":{"rendered":"https:\/\/koreapro.org\/?p=2206504"},"modified":"2024-09-17T16:21:38","modified_gmt":"2024-09-17T07:21:38","slug":"south-koreas-innovation-drive-faces-long-term-risks-despite-rd-spending-surge","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/09\/south-koreas-innovation-drive-faces-long-term-risks-despite-rd-spending-surge\/","title":{"rendered":"South Korea\u2019s innovation drive faces long-term risks despite R&D spending surge"},"content":{"rendered":"
South Korea\u2019s <\/span>2025 budget proposal<\/span><\/a>, which features an 11.8% increase in research and development (R&D) spending, signals a continued push toward investment in artificial intelligence (AI), biotechnology and quantum computing.\u00a0<\/span><\/p>\n However, South Korea faces a deeper concern: the long-term sustainability of the country\u2019s innovation model.<\/span><\/p>\n SOUTH KOREAN INNOVATION<\/b><\/p>\n South Korea consistently ranks as one of the world\u2019s most innovative countries. Bloomberg\u2019s 2021 Innovation Index gave the <\/span>top spot<\/span><\/a> to South Korea, citing the country\u2019s strong performances in patent activity, R&D intensity and manufacturing capability. The Global Innovation Index of 2023 also placed South Korea in <\/span>10th place<\/span><\/a>.<\/span><\/p>\n However, this innovation leadership is largely dominated by <\/span>chaebol companies<\/span><\/a> \u2014 South Korea\u2019s major conglomerates. Firms like Samsung and SK Hynix have historically been the primary drivers of innovation, benefitting from substantial government support. For instance, Samsung\u2019s continued focus on semiconductor technology and AI positions the firm as a key player in the country\u2019s innovation efforts.<\/span><\/p>\n South Korea\u2019s 2025 R&D budget continues this model, offering these high-tech giants additional resources to further strengthen their global foothold.\u00a0<\/span><\/p>\n However, this paradigm is increasingly dependent on incremental innovations rather than the kind of disruptive breakthroughs that reshape industries. The 2025 budget, while representing a substantial short-term investment, fails to address the structural weaknesses that could hinder long-term competitiveness.<\/span><\/p>\n CHAEBOL DOMINANCE<\/b><\/p>\n Chaebol companies receive the lion\u2019s share of government R&D funding, which drives much of the patent activity. South Korea leads the world in <\/span>patent filings<\/span><\/a>, with 7,779 patents filed by Korean nationals for every $100 billion of the country\u2019s gross domestic product.<\/span><\/p>\n However, the sheer volume of patents may reflect an overemphasis on patent quantity rather than quality. For instance, many of the country\u2019s patents focus on <\/span>incremental improvements<\/span><\/a> to existing technologies rather than seeking to drive radical, disruptive innovations.<\/span><\/p>\n Samsung, <\/span>one of the largest patent filers globally<\/span><\/a>, frequently submits patents related to incremental improvements in its semiconductor manufacturing processes rather than introducing entirely new technological breakthroughs\u200b. This suggests that South Korea\u2019s top ranking in patent filings may mask deeper issues regarding the quality and global impact of its innovations.<\/span><\/p>\n Moreover, chaebol dominance has a <\/span>stifling effect<\/span><\/a> on smaller businesses and startups. These smaller firms lack the resources to compete with chaebol companies for government R&D funding, limiting their ability to bring new ideas to market. This dynamic has a tendency to curb disruptive innovation.<\/span><\/p>\n