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Status of convergence among SMEs and policy implications

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Frame of Image ket. However, the growth factors of SMEs, including the low wage levels, high subcontracting rate and dependency on the domestic market, have reached their limits. Because of these factors, the steady growth of SMEs is facing difficulties. Meanwhile, the global economy of the 21st century is going beyond the ‘era of information’ and entering the ‘era of convergence’. In this new industrial environment of accelerated convergence, individual small and medium-sized enterprises encounter limits on growth that is based on mere technological or managerial renovation. Thus, SMEs must think beyond technological renovation and find new management strategies through convergence with others.
To create new growth through convergence, advanced countries have already been supporting SMEs since the late 1980s by preparing legal and systematic foundations. In the case of Japan, the Temporary Measures for the Promotion of the Development of New Fields by the Knowledge Convergence of SMEs in Different Fields (Known as SME Convergence Act) was enacted in 1988 to actively support SME convergence of knowledge & technologies. As a result, strong SMEs with leading technologies were nurtured, while the renovation capacity improved to overcome the ‘strong-yen’. The Korean government has also recognized convergence as the key to creating new growth a n d e m p l o y m e n t , a n d a c c o r dingly enacted the Industrial Convergence Promotion Act in April of 2011. However, support for convergence amon


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Title Status of convergence among SMEs and policy implications
Similar Titles
Material Type Reports
Author(English)

Yang, Hyun-Bong

Publisher

[Seoul]:Korea Institute for Industrial Economics & Trade

Date 2014-10
Series Title; No KIET Industrial Economic Review
Pages 10
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Industry and Technology < Manufacturing
Industry and Technology < Entrepreneurship
Holding KIET; KDI School