Investment in intellectual infrastructure key to Korea’s future

Korea is shifting its hiring of science and technology personnel from leaders who can drive a “catch-up” business model to leaders who can pursue a “frontier” strategy that leverages next-generation industries. Through this, Korea hopes to stay ahead of emerging market rivals like China on the value chain, while catching up with existing technology powerhouses.

Korea is less competitive in promising industries

Samsung Economic Research Institute selected nine emerging industries for Korea through a meta-analysis of core convergence technologies and applied areas, and subsequently Korea’s technology and human resource competitiveness in these industries. The industries chosen are: green energy, environmental technology, transportation and exploration, high-tech cities, information and communications technology, robotics, new nanomaterials, biomedicine and high value-added food products.

In these nine industries, Korea was found to be markedly weak in both technology and human resources compared with advanced countries. Workforce competitiveness in human resources was particularly low, suggesting a shortage of skilled personnel. This was visible in all of the industries (except for high value-added food).

The technological competitiveness of promising industries was just 57 percent of that of advanced countries, with workforce competitiveness at 55 percent. The difference was especially pronounced in ICT, green energy and environmental technology. Technological competitiveness in the transportation and exploration industry was particularly weak, at only 51 percent of advanced countries. Environmental technology, biomedical science and high value-added food also fell short in technological capacity.

SERI’s analysis forecasts a chronic human resources problem in these industries, amounting to a shortfall of 10,000 workers a year up to 2020. At the current pace, the shortfall will be 3,000 per year until 2013, with environmental technology, high-tech cities and ICT affected the most. These three industries will require a supply of 1,400 personnel. Thereafter, the shortfall will reach 10,000 per year from 2014 through 2020 with ICT needing 1,300 people, new nanomaterials needing 1,200 people and biomedical science needing 1,400 people.

Next-generation industries require employees with post-graduate education in basic science and engineering. Basic science, including math, physics, biology and chemistry will be critical because it constitutes the core of the nine emerging industries. Basic engineering, including electrical, electronic, computing, and communications engineering, is the foundation of convergence technologies.

Korea’s current higher education system cannot meet the demand for basic science and engineering graduates. In particular, biomedicine, ICT and new nanomaterials, expected to grow 22.3 percent, 28.7 percent and 27.6 percent per year respectively by 2018, are likely to face a severe shortage of labor due to the lack of degree holders in biochemistry, electrics, electronics and materials.

Strategy to produce 100,000 experts

The projected shortage in highly educated S&T personnel calls for a national plan to annually add 10,000 workers with post-graduate degrees for the next decade. The plan should be based on four basic principles.

First, creative S&T personnel should be fostered at the post-graduate level in fields closely related with next-generation industries. Second, basic research capability should be upgraded to take a technological lead. Third, an institutional foundation needs to be established to ensure consistency in research and talent management policies. Last, in addition to internal development, overseas scouting should be encouraged.

Ph.D. and Master’s degree work in electricity/electronics, machinery/metals and chemical engineering should be fostered at a select number of graduate schools and research institutions with outstanding R&D capability. This would be a departure from the current Korean approach of spreading support across many universities and institutions.

The education system should be improved to keep the curriculum updated and relevant to industrial fields, while support for developing new subjects and teaching-learning methods should be expanded. Interdisciplinary courses can help foster talent with diverse academic backgrounds. Moreover, government support should be provided so that government-funded research institutions use their own R&D capability to nurture post-graduates.

Investment in basic, source and converged technologies based on information technology, biotechnology and nanotechnology should be expanded. Investment should be directed into university labs for state-of-the-art equipment and facilities, and government support should be channeled into research groups. An increase in research funding and scholarships will provide a stable environment for talent in basic science fields to focus on their research. Incentives will also be necessary to encourage young talent to go onto advanced courses. In line with this, fast-track programs in basic science and technology that allow promising students to rapidly acquire doctoral degrees need to be introduced.

At present, several government agencies are involved in S&T personnel development policies. However, the central function of coordinating and integrating relevant policies is still immature, which creates overlapping investments and inefficient budget execution. To tackle this problem, a government-wide coordination and management function should be created to set directions for and assess S&T development programs and research investment in promising industries.

In the past, Korea had a short-term approach to recruiting skilled Korean expatriates, which exacerbated brain drain. This needs to be changed to long-term, regular programs to attract world-class Korean scientists. In addition, inviting foreign scholars needs to be given greater attention. Research institutions should help attach Korean personnel to invited scholars to elevate the long-term quality of local research. Attracting prestigious research institutions overseas can be pursued as well. Their projects and businesses must undergo rigorous performance evaluations to maximize benefits to the society. For this, the government should monitor their performance and provide necessary support through a dedicated agency. Immigration policy should grant permanent residency to facilitate overseas recruiting.

Korea has experienced great success in catching up with advanced economies by deploying universal basic education, taking on established industries, and making massive investments in physical infrastructure. Unlike the past, however, Korea’s future now depends on investment in its intellectual infrastructure, i.e. its most highly skilled people.

The next chapter of Korea’s development will depend on the choices it makes in pursuing emerging industries and developing its science and technology talent, as it shifts from “catching up” to a “leadership” role in the global economy.

By Bae Seong-o

The author is a research fellow at Samsung Economic Research Institute. This article was contributed by SERI. ― Ed.