Free Trade Agreements(FTA) with the U.S.A. seems to be the biggest
step toward global liberalization of the Korean economy. The Korean
government is on the schedule for more agreements with many other
countries like China, Japan, India. In principle, they would be much
beneficial to the Korean economy. As the Korean market gets more open,
prices would go down so that Korean consumers could enjoy better products
at lower prices.
However, when it comes to Korean producers, free trade means
something else more serious. Free market means new challenges as well as
new opportunities. If Korean manufactures succeed to get advantage over
their foreign competitors, they can have big chances for prosperity. But
there are still big chances as well for them to fail. Korean manufactures
seem to stand at crossroads which lead to anywhere.
Who could go which way? And why? These are the main concerns of
this report. Preparing for market opening, Koreans should understand how to
succeed and why to fail. Business successes and failures have their own
reasons. Among them, this report focuses on technology and innovation.
This report analyses relationships between innovation and free trade in
theoretical and empirical frameworks.
It is found that free trade gives differentiated effects on Korean
industries. In High-Tech. industries like computer and telecommunication,
free trade would encourage firms to invest more in R&D in order to cope
with rising threats from competition. On the contrary, in Low-Tech.
industries like furnitures, R&D investment of firms would be shrunken,
which might lead to business collapses. In general, firms with high
efficiency in knowledge production are more willing to invest more in
R&D, which may increase probability of success.
Based on such analyses, this report suggests two ways of governmental
support to revitalize private R&D activities. One is an incentive scheme for
collaboration among private and public researchers. The other is
rearrangement of governmental investment in R&D. The first is to enhance
R&D productivity of private sectors, while the latter, to reduce costs of
- 대외개방이 기술혁신과 성장잠재력에 미치는 영향과 정책과제(Free Trade Impacts on Innovation, and Rearrangements of Public R&D Investments in Korea)
- Lee, Jaeouk; Lee, Wooseung; Son, Soojeung; Lee, Sanghak이재억; 이우성; 손수정; 이상학
대외개방이 기술혁신과 성장잠재력에 미치는 영향과 정책과제(Free Trade Impacts on Innovation, and Rearrangements of Public R&D Investments in Korea)
|Series Title; No||정책연구 / 08-05|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Trade
Industry and Technology < Science/Technology