This paper examines if internationalization of enterprise will be an effective means of improving the competitiveness of domestic companies and overcoming the disadvantages being technologically late-starters, and suggests basic direction for desirable internationalization strategies.
The world has been witnessing technological innovation accelerate and spread across the globe, while international specialization advances among countries and companies. There is now a greater necessity for internationalizing enterprises so as to take advantage of the international specialization system. Additionally, corporate partnership between international enterprises is increasing to further advance technology, a core factor of business competitiveness. In mining and oil exploration, global corporate partnership is common. A substantial part of foreign investment in manufacturing is related to corporate alliance. However, corporate partnership has emerged as an area of new interest due to the increased utilization and improvement of technological assets and capabilities. Corporate partnership in technology is encouraged for purposes such as complementing research and development resources, improving development successes, mutually supplementing weak technologies, strategically securing necessary technologies, dispersing risk, avoiding technological friction, and diversifying and globalizing management. Partnership can consist of operating a joint venture and a joint research institute which includes capital investment, or of sharing research tasks and exchanging only research and development personnel and information, which does not require investment.
High-tech industry has formidable competition, and many countries are strengthening technology protectionism through large-scale national commissions and legislation related to technology. Korea is in a position where it must mobilize all insight, such as establishing and utilizing overseas research institutes and participating in international joint research projects, in an effort to help promote its own international competitiveness. Korea needs to take advantage of various forms of alliance or partnership with technological leaders, while exploring ways of creatively offering or packaging technology to increase its bargaining power.
In fostering high-tech industry, which will be key in advancing industries and producing higher-value products, the government must generate policy related to research and development in two aspects: funding, and achieving efficient research and development. The government needs to provide research and development resources such as talented innovators, equipment, funds, and information to necessary fields, while focusing its efforts on modernizing organizations that undertake research and development to better manage their incentive systems. That is, it is necessary to design interactions and specialization structure among research and development organizations and production sites, final demand, and relevant industries.
The government should also utilize tax benefits and financial support (of general industrial policy means, if necessary), but must make efforts to nurture and secure advanced technological human resources and effectively manage training and re-training programs for technological manpower. On the research front, the government should consider investing in, or operating, corporate research institutes so that companies, rather than the government, universities, or research institutes, become leaders in conducting research.
기업국제화와 첨단기술산업의 육성(Internationalization of enterprises and the fostering of high-tech industry)
|Series Title; No||정책연구시리즈 / 91-17|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < Science/Technology
Industry and Technology < Entrepreneurship
|Holding||KDI; KDI School|