Korea and the Knowledge-Based Economy

by Andersson, Thomas; Dahlman, Carl J.

• ISBN13: 9780821348819
• ISBN10: 0821348817
• Format: Paperback
• Copyright: 2001-01-01
• Publisher: World Bank

Summary

Korea is a country with limited natural resources, which has developed through a strategy of industrialisation and the economies of scale. However this is being challenged by the rise of knowledge as a principal driver of competitiveness. This book is the result of a joint study by the OECD and the World Bank to develop a comprehensive set of national policy responses to the knowledge revolution. It concentrates on four areas: 1) an institutional and economic regime that provides incentives for the creation of new knowledge and its efficient use; 2) an educated and entrepreneurial population; 3) a dynamic information infrastructure; 4) an efficient system of innovation.

Table of Contents

Currency Equivalents	9	(1)
Abbreviations	9	(2)
Executive Summary	11	(1)
The knowledge revolution: the challenge to Korea's development strategy	11	(2)
The framework of the knowledge-based economy	13	(1)
Issues in the four key areas	14	(2)
Industry-related reforms	16	(1)
Implementation of the reforms	17	(1)
Executive summary matrix: main findings and remaining issues	18	(7)
The Knowledge Revolution: A Challenge to Korea's Development Strategy	25	(16)
The current context	25	(1)
The knowledge and information revolution	25	(3)
Challenges to Korea's future development	28	(3)
Korea's new development strategy	31	(1)
The concept of a knowledge-based economy	31	(1)
Definition and framework	32	(9)
Notes	37	(2)
References	39	(2)
Updating the Economic Incentive and Institutional Regime	41	(16)
Introduction	41	(1)
Redefining the role of government	41	(1)
Opening up the economy and promoting competition	42	(3)
Increasing the soundness and efficiency of financial markets	45	(1)
Enhancing labor flexibility and strengthening social safety nets	46	(1)
Addressing the risks of the ``digital divide''	47	(3)
Updating the institutional regime	50	(2)
Conclusion	52	(5)
Notes	53	(3)
References	56	(1)
Developing Human Resources for the Knowledge-based Economy	57	(22)
Introduction	57	(1)
Educational achievements and recent education reforms in Korea	57	(3)
The paradigm shift in education	60	(1)
Challenges to the Korean education system and possible responses	61	(10)
Conclusions	71	(8)
Notes	73	(3)
References	76	(3)
Ensuring a Dynamic Information Infrastructure	79	(16)
Background	79	(1)
Recent sector growth	79	(3)
Remaining challenges	82	(1)
Cyber Korea 21: Targets and initiatives	83	(1)
Next-generation policy and regulatory role for government	84	(5)
Ensuring access and overcoming the digital divide	89	(1)
Using ICTs to improve the performance of government	90	(1)
Conclusions	91	(4)
Notes	93	(1)
References	94	(1)
Improving the Korean Innovation System	95	(20)
Introduction	95	(1)
Profile of science, technology and innovation activities	95	(3)
Main features and weaknesses of the Korean innovation system	98	(5)
The new policy agenda	103	(7)
Conclusions	110	(5)
Notes	111	(2)
References	113	(2)
Promoting Knowledge-based Activities	115	(18)
Introduction	115	(1)
Reforming the chaebol	116	(4)
Improving conditions for small and medium-sized enterprises (SMEs)	120	(3)
Strengthening the contribution of foreign firms	123	(1)
Promotion of high-value-added services	124	(2)
Promoting investment in intangible assets	126	(2)
Conclusion	128	(5)
Appendix Most Important Bottlenecks in Production and Technological Improvement	129	(1)
Notes	130	(1)
References	131	(2)
Implementing Korea's Strategy for a Knowledge-based Economy	133
Introduction	133
Broadening and deepening the consultations	133
Working out the implementation details	136
Notes	140
References	142
Annexes
Preliminary Assessment of the Knowledge-based Economy in Korea	143
Closing the Digital Divide: Some Country Examples	147
Some Reflections on the Challenges of Policy Implementation	151