The Korean innovation system is in many ways highly developed and has helped to underpin
Korea’s rapid industrialisation. However, long-standing policy emphases on manufacturing
and large firms are today in question. Structural problems - such as the relatively
weak innovation performance of SMEs, a lagging services sector and limited domestic
job creation among the industrial conglomerates - have led to a shift in policy priorities.
This shift is crystallised in the current government’s Creative Economy Strategy,
which entails a far-reaching set of measures aimed at fostering cutting-edge innovation
and consolidating a knowledge-based economy increasingly driven by high-value services.
This review addresses Korea’s industry and technology policies and institutions, and
provides policy recommendations.