Global Challenges and Ko-rean STI Development Ex-

periences

KOFST FORUM on KSP and Science DiplomacyNov 7, 2013Seoul, ROK

Jeong Hyop Lee, Ph.D.

Introduction New Approaches with Korean

Experience Poverty Traps: Least Devel-

oped Countries Health Challenges: Africa Water, Food and Green Energy:

ASEAN Conclusion

Con-tents

1. Introduction 1

Requests to Develop STI Strategies by Benchmarking Korean Experiences

- Poverty Traps of LDCs by UNESCAP-APCTT - Health Challenges of Africa by WHO and

ANDI - Global Challenges of ASEAN by ASEAN COST

Lack of Longitudinal Approaches and Preva-lence of Benchmarking Practices

- Rush to Benchmark Korean Experiences without Contextualized Understanding

Need to Develop New Approaches for Diag-nosis and Strategy Development

2

Pilot STI Strategies Development and Exten-sion to Other Countries

- Poverty Traps: Nepal (2012), Laos (2013), Bangladesh (2014)

- African Health Challenges: Nigeria and Tan-zania (2013), Ethiopia (2014)

- ASEAN Global Challenges (2013): Indonesian Water, Vietnamese Green Energy, and Fil-ipino Food

Iterative Process for Multilateral and Bilateral STI Strategy Development with Selected Cases

3

Strategy Development Principles

2. New Approaches with Korean Experience

Future-oriented vision and goal

Coordinating mecha-nism for successful in-novation

Collective adaptation to changes and cumula-tive capacity building

Korean Experience Importance of innova-

tion and extension of its scope

Uncertainties and changes in government intervention

Proper STI strategy implementation

Global STI Context

Oriental holistic approach for prioritization of focus areas

Intuitive decision making leading to strong execution and consensus building

Future-oriented goals and a pathway to min-imize uncertainties

Principles

4

Necessity for sys-tem innovation transformation

Diagnosis (3C)

Solutions (3A)

Action Plan (Roadmap)

Implementation

Monitoring and Evaluation

Corrective Actions

Failure

Suc-cess

Governance Capability

Leadership, stakeholder

capacity, etc

Strategy Simulation

5

Componentization

Contextualization

Conceptualization

3C Diagnosis

Articulation of Action-oriented, Actor-based Policies3A Prescription

Identification of major components of system weak-ness and bottlenecks in a holistic viewpoint with statistically described and overviewed symptoms of system

Structurized and heuristic understanding of identi-fied components in the context of system dynamics with several rounds of deepening diagnosis process

Synthesized diagnosis that provides a plausible ex-planation of the structural problems of the system and leads to consensus among stake-holders by having common understanding of system weak-nesses and bottlenecks

Holistic Approach: 3C Diagnosis and 3A Pre-scription

6

Future Design Approach: Goals and Pathways

3C Diagnosis Result

Current Status

Pathways

Goals

Core Variables

Triggering Programs/Projects

Scenario

7

Intuitive Approach

- Appropri-ate methodol-ogy for ef-fective planning with limited resources and time

- Expert panel brainstorm-ing

8

Landlocked Economy with 6.5 Million Population of Peasant Industry

Trade Deficit↑

Budget Deficit↑ Lack of

Government Industrial Promotion

Poverty Surveil-lance

3. Poverty Traps: Least Developed Countries

9

Landlocked 6.5 Million Peasant Indus-try

Trade

Budget Industry

Poverty

Little In-vestment

Dominated by FDI

Mining & Hydro Elec-tricity Ex-

port↑

Lao KIP Ex-change Rate↑

Lao Product Competitiveness

↓

Job Mar-ket↓

Peasant Poverty Trap

10

Landlocked 6.5 Million Peasant Indus-try

Trade

Budget Industry

Poverty

FDI Mining & Hydro

KIP

Product

Job

Peasant Poverty Trap Natural Resource Trap

University Teaching Burden ↑

Infant Mortality

↓ General Educa-tion↑

Tertiary Ed-ucation En-rollment↑

MDG of last 10 years

No quality jobs for new grad-uates, poten-tial social problems

11

Landlocked 6.5 Million Peasant Indus-try

Trade

Budget Industry

Poverty

FDI Mining & Hydro

KIP

Product

Job

Peasant Poverty Trap Natural Resource

Trap

Univer-sity

Infant

General

Tertiary

MDG

Unin-tended Policy

Gaps be-tween Job

Market and Edu-

cation

Foreign Contract Research

↑ Industry Science Iso-

lation ↑Health, Agricul-ture, Forestry, etc

12

Landlocked 6.5 Million Peasant Indus-try

Trade

Budget Industry

Poverty

FDI Mining & Hydro

KIP

Product

Job

Peasant Poverty Trap Natural Resource

Trap

Univer-sity

Infant

General

Tertiary

MDG

Unintended Policy Gaps between Job Market and Education

Contract Research

Isolation

Structural Bottle-

necks of ISR

Synthesized understanding of Lao IS

13

Peasant Poverty Trap

Natural Re-source Trap

Unintended Policy Gaps between Job Market and Educa-

tion

Structural Bot-tlenecks of ISR

Critical Review of Lao Initiatives • MME wants to use its money to promote in-dustry.

• MPI is trying to build core capacity of HRD.

• MOE’s HRD plan fo-cuses on tertiary edu-cation.

• MOI’s industrial plan is vague and not related to the core capacity building.

• MOST was just estab-lished and previous NAST’s plan was not oriented for industrial-ization.

14

Peasant Poverty Trap

Natural Re-source Trap

Unintended Policy Gaps between Job Market and Educa-

tion

Structural Bot-tlenecks of ISR

Solutions

Targeting Products

Mission Re-searches

Strategic HRD

Industrial promotion

and job cre-ation

Poverty re-duction

Steering Governance

Resource mobi-lization from do-mestic and abroad

Procure-ment

15

Innovation Direction

Structural bot-tlenecks and policy gaps

Peasant poverty and natural re-source traps

Strategic coordina-tion for critical mass creation

Sustainable economy

Triggering Pro-grams

Prioritization of indus-trial development

Two programs of mis-sion research and strategic HRD

Steering governance design and resource mobilization

Prioritized in-dustrialization with mission research and

HRD

164. Health Challenges: Africa

Synthesized understanding of Tanzanian health and pharmaceutical innovation

Disease Prevalence

Substandard & Counter-feit Drugs

Insufficient Supply of

Drugs

Government Budget Bur-

den

Limited Quality Assurance Ca-

pacity

Reliance on Imported

drugs

Facility In-vestment ↓

Need for Quality

Control↓

Oligopoly and po-litical collusion driven market

Quality Products ↓

Weak Pro-curement

Vicious Circle I: Substandard

Drugs

Vicious Circle II: Quality Assurance

Vicious Circle III: Weakening Competitiveness of Local Pharmaceutical Industry

17

Disease Prevalence

Substandard & Counter-feit Drugs

Insufficient Supply of

Drugs

Government Budget Bur-

den

Limited Quality Assurance Ca-

pacity

Reliance on Imported

drugs

Facility In-vestment ↓

Need for Quality

Control↓

Quality Products ↓

I. Procure-ment

II. Invest-ment

III. Regula-tory Capac-

ity

IV. SkillsV. IPRVI. Research and Innovation

Oligopoly and po-litical collusion driven market

Weak Pro-curement

Limitations of six pillars of pharmaceuti-cal promotion for East Africa

18

Technology Platform for QA and Capacity Building

Disease Prevalence

Substandard & Counter-feit Drugs

Insufficient Supply of

Drugs

Government Budget Bur-

den

Limited Qual-ity Assurance

Capacity

Reliance on Imported

drugs

Facility In-vestment ↓

Need for Quality

Control↓

Quality Products ↓

Government Procurement

↓

Oligopoly and po-litical collusion driven market

1. Quality Assured Drugs

2. Incentive to Invest in Infrastructure

3. Supply of Quality Drugs

Break-off of the Low Innovation

Trap

Deter the continuity of Political Collusion Driven Market Proposed Solutions

195. Water, Food and Green Energy: ASEAN

Framework Condi-

tionsDiagnosis Solutions

Innovation Direc-

tions

Indonesia

(Water)

• Decreasing quality & quantity of water in rural and urban areas

• Limitations of financial assis-tance and tax in-come

• Ecological degradation

• Fragmented governance

• Decreased pipe services

• Strengthening coordination and capacity through tech localization

• Promotion of water- related industries to reduce financial burden

• Pathway: Domestic capacity building through implicit coordination

• Goal: ASEAN Water Innovation Hub

Philip-

pines

(Food)

• Food price surges and endangered food security

• Weakening agricultural productivity and agricultural technology leading to low rural income

• Low productivity and low rural in-come

• Industry and re-search isolation

• Laissez-faire policy and lack of strategic interven-tion

• Export promotion of agricultural products and pro-cessed food driven by global challenges

• Inclusive development and mission-oriented R&D

• Pathway: Competi-tiveness building through pooling and sourcing of in-ternational technologies

• Goal: Strategic positioning of Fil-ipino agricultural and food industry in global value chain

Vietnam

(Green

Energy)

• Premature green energy market and limited ca-pacity

• Climate change adaptation

• Weak producers/ providers

• Poor market• Incompetent

governance

• Promotion of new energy service and production industry

• Provision of afford-able products/ser-vices

• Pathway: Sustain-able production mechanism

• ASEAN Green En-ergy Innovation Hub

206. Conclusion

Action planning of priority setting, program de-sign and roadmapping will follow.

Theoretical extension of the Korean STI experi-ence and verification with several cases from LDCs, Africa and ASEAN, which complements the humble address of Dr. Choi describing what Ko-rea has achieved

I have not attempted to present a theoretical or systematic exposition of a science and technology development strategy for developing countries. Rather, I have tried to describe the approach we took in Korea in the background of conditions we confronted in the late 1950s and early 1960s with the emphasis on how we actually went about implementing the project planned (Choi, 1988, v).Choi, Hyung Sup, 1988, Springboard Measures for Becoming Highly Industrialized Society, APCTT/UN ESCAP

21

Position of Korean STI ODA

• Ownership and Capacity Build-ing• Global partnership for ODA coordination and linkage

AID Effectivenessfragmentation and dupli-

cation

Triangular Part-nership

Public Private Partnership

Global Gover-nance

DAC accession and ODA expan-

sion by Korean government

Korean experience as strategic solutions for devel-oping and less developed countries

Global platform leader-ship leading multilateral and bilateral coordina-

tion

22

Scale-up for global governance

Korean Public Private Part-

nership

Multilateral Donors

Bilateral Donors

Recipient Countries

Project Proposal

Donation

Personnel/Physical Participation

Project Man-agement/ In-ternational Standards

Development Experience

GRI mediated PPP Knowledge/Experi-ence for Problem Solving

Financial and Tech-nical Support

Financial and Tech-nical Support

Thank you for your attention!