This study explores the types of technological assistance that small and medium manufacturers of parts in Korea needs in line with the evolving technology that applies to the parts they are required to produce. Since the 1970s, the policy of fostering the heavy and chemical industries in Korea has given a big boost to the growth of technology-intensive and assembly industries that make products such as electronics and automobiles. These industries have succeeded in localizing the development of core parts phase by phase, extending their scope of concern from assembly to the design and development of their products. The buildup of technological expertise in Korean businesses has allowed them—particularly large corporations—to develop almost all the parts, except for a few core components and items that are currently under development in advanced countries.
This changing industrial environment has raised the relative importance of parts manufacturers in the Korean economy. The growing focus on technology in industrial competition has also made technological innovation the top-priority concern for small and medium manufacturers of parts. The leading industries in Korea today include the automobile, electronics and general machine industries. All these industries have grown thanks to the government’s systematic support and they are required to compete with their counterparts from advanced countries. Competitors from advanced economies, however, focus on developing new products to win in this competition while delegating the development of parts to parts manufacturers. In order to compete with them effectively, Korean industries should also launch the simultaneous development of a two-tracked system for developing products and parts separately.
In order for the Korean government to foster these industries, it needs to differentiate the levels of technological assistance that need to be provided to parts manufacturers at different stages of technological capacity development, and prioritize channeling resources into developing unique and original parts. Parts manufacturers, finished product manufacturers and research institutes need to work together in each industry to formulate their vision and goals for technological development. The government can help them with this process by dispatching an administrator. A common declaration of the technological vision is crucial to the academic-industrial collaboration programs and to enabling subcontract-based processing businesses to decide what type of assistance they need. Small and medium manufacturers of parts will also require the development and creation of exclusive production facilities capable of improving productivity and precision. As these manufacturers cannot build such facilities on their own, large corporations should develop such equipment so that SMBs can purchase them.
중소부품기업의 기술지원방안(Technological assistance for small and medium manufacturers of parts)
|Series Title; No||정책연구시리즈 / 94-04|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < Manufacturing|
|Holding||KDI; KDI School|