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Korea the World’s and OECD’s R&D Leader

(SEOUL=NEWSIS) Korea ranks number one globally for gross expenditure on R&D as well as number one among Organisation for Economic Co-operation and Development (OECD) countries for the R&D concentration of domestic companies, according to the OECD Science, Technology and Industry Outlook 2014, which was announced November 12 and examined 46 countries (34 OECD members, 12 non-members).

According to the report, Korea’s gross expenditure on R&D in 2012 was the highest globally, at 4.36 percent, and the R&D concentration of domestic companies ranked first among OECD nations the same year, at 3.4 percent.

The report positively evaluates Korea for its high R&D investment in innovation systems, policies and higher education, developed ICT infrastructure, active patent applications for public research institutions, private transfer activities, special R&D zones and direct and indirect funding systems to support SMEs and startups.

On the other hand, Korea failed to receive high marks for internal exchanges, including percentage of overseas joint research and joint patent application and inflow of external R&D capital. The OECD cited the technology development-centered, practical research and activities of public research institutions and the R&D expenditure of large-scale companies as reasons for the low marks.

The science and technology innovation outlook, including R&D of OECD member countries, is dull despite the recovering global economy, according to the report.

The report estimates that the annual percentage growth rate of GDP will increase to 3.9 percent next year from 3.5 percent this year. The GDP growth rate for next year of OECD members is 2.4 percent, which is lower than the world average. Therefore, it will be companies that will lead innovation, including R&D, not countries.

The report suggested that each nation implement a national strategy for science and technology innovation, taking into account active R&D innovation in the public sector. The report selected the achievement of sustainable economic growth and combating climate change and an aging society as global tasks. It also emphasized a scientific technology new deal policy that promotes enhancing policy effect evaluations and improving policy activity efficiency.

Source Text

Source: Newsis (November. 13, 2014)

** This article was translated from the Korean.
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