Archives
Responding to crisis in Korea, Pt 1: Impacts of the foreign exchange crisis on R&D activities
Taeyoung Shin
Director, Industrial Innovation Studies, Science & Technology Policy Institute (STEPI)
Abstract
This paper investigates the industrial R&D sector in Korea following the foreign exchange crisis at the end of 1997. In response to the crisis, rigorous reforms in the industrial sector were undertaken, including many within the R&D sector. A survey was carried out by STEPI, in October 1998, to ascertain the changes in R&D activities after the crisis. The results indicated that total R&D investment decreased by about 12 per cent, while the growth rate of the economy was about -6 per cent. The major victims of the foreign exchange crisis appeared to be industries and universities. In addition, industrial R&D strategies changed from long-term to short-term oriented strategies and approximately 4,500 R&D personnel were made redundant. This article describes the methodology and results of the STEPI study, illuminating Korea's R&D investment in various industries at the beginning of the new millennium.
Keywords
economic crisis, Corporate reform, R&D investment and man-power, R&D strategies
eContent Home