Friday, December 2, 2011

Signs of Dwindling Innovation Apparatus of Korea

It is widely recognized that a few Korean high tech firms like Samsung have become top notch contenders in some industries such as semiconductor, display and mobile phones. Despite Korea’s impressive success in certain fields, there are signs Korea may be losing its technological prowess and innovation potential.

Some of them are:

-Dwindling manufacturing base caused by offshoring/outsourcing

-Further erosion of industrial base due to global demand slowdown

-Scale-intensive export model not working

-Persistent dissonance between manufacturing and financial sectors

-Stifled entrepreneurial spirit and discipline

-Waning technology-based small businesses

-Chaebols’ monopolistic practices with innovative small firms

-Rise of China

-Some high-tech chaebols like LG losing their competitiveness on the global stage

-Korean chaebols engaging in non-productive activities

-Unpopular top engineering schools; Smart kids not willingly getting into those schools

-No technology trickle down effect

-Inefficient NIS

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