High-technology and regional development policy: An evaluation of Korea's technopolis programme

H A B I T A T I N T L . Vol. 19, No. 3, pp. 253-267, 1995 Elsevier Science Ltd Printed in Great Britain 0197-3975/95 $9.50 + 0.00

Pergamon

0197-3975(94)00047-6

High-Technology and Regional Development Policy: An Evaluation of Korea's Technopolis Programme DEOG-SEONG OH

Chungnam National University, Taejon, Korea ABSTRACT

This study aims to identify the role of High-Tech Centres for regional development. It assesses the experience of Korea's Technopolis programme with regard to its potential for the regional development. After defining the concept of High-Tech Centre, the roles of High-Tech Centre policy are described. In addition the context in which these have been developed is considered with reference to high technology and regional development policy. The experience of a successful site, Taedok Science Town, is examined in detail and evaluated in relation to several key conceptual issues such as growth, the role of universities and its impact on regional development. INTRODUCTION In recent years there has been considerable interest in regional development policies which emphasise new technology and innovation. The High-Tech Centre (HTC) is one of these innovation-oriented regional policies. The emphasis by so many countries around the world on the stimulation of High-Tech industry through HTCs and other initiatives is based on the assumption that technological innovation leads to economic growth. 1-4 But the HTC is not a uniform concept. There are a great variety of types and development processes in different countries and regions. Because the concept is relatively new, even experimental in some areas, there remain unanswered questions and important issues concerning the dynamics of creating and sustaining HTCs that need to be addressed and better understood. The most important issues are how HTCs are effective as an instrument of regional innovation policy and for stimulating technology-led economic development. With these considerations in mind, this paper evaluates the experience of the High-Tech Centre (technopolis) programme in Korea. It presents an overview of this programme in Korea, with particular reference to the experience of Taedok Science Town, because this is likely to influence the development of other technopolis sites in the near future. The paper begins with a definition of the concept of High-Tech Centre and the role of High-Tech Centre policy. It is followed by technopolis development in Korea. The second part of the paper describes the experience of Taedok Science Town. It draws attention in particular to the main activities there, the role of universities, and its impacts on regional development. The last section discusses the key issues for the development of High-Tech Centres and evaluates the experience of Taedok. 253

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THE CONCEPT OF HIGH-TECH CENTRES: SCIENCE PARK, SCIENCE CITY AND TECHNOPOLIS

Definitions of High-Tech Centres (HTC) vary considerably around the world and significant variations occur within individual countries. However, the essential concept is one of spatial development where the interface of research with commerce and industry is encouraged for the better exploitation of advanced technology. We can use the term 'High-Tech Centre' in the broadest sense to denote property-based development, sometimes related to urban redevelopment, which has the objective of facilitating and prompting the growth of high-teeh firms through technology transfer and cross fertilisation, in association with a higher education institution (HEI) or a centre of research. 5 Two kinds of HTC development have emerged: Science Parks and Technopolises. The 'technopolis' concept emphasises a balanced approach to high technology development. Instead of focusing only on technology it involves the creation of new settlements, complete with research parks, new universities, technology centres, housing and cultural facilities. 6 In terms of scale and development, Masser 7 has pointed out the difference between technopolises and science parks: technopolises are larger in scale and are often linked to the major physical development of infrastructure and facilities on the new-town model, whereas science parks are more limited in scope. Technopolises also tend to be more production-oriented than science parks. The word 'technopolis' is a combination of 'technology' and 'polis'. It consists of three interlocking components: an industrial unit, academic and research institutions and a residential zone. 8 The most important element for the technopolis is the establishment of high-tech industrial complexes composed of electronics, mechatronics, robotics, biotechnology and similar industries. These complexes are seen as key elements to enable the local economy in the technopolis area to be self-propelling. So technopolises need to supply to incoming high-tech firms the right mix of facilities for production and research activities. The academic elements are universities, research institutes and laboratories which can provide the enterprises in the technopolis with an advanced level of scientific and technological knowledge and research stimulation. As for housing, technopolises need to offer a good environment for highly-qualified personnel and their families to enjoy a pleasant daily life. 9 Technopolises tend to have both national and regional objectives. The national technological objective is to offer to high-tech industries adequate industrial land and an environment suitable for creative research. These resources have become scarce in the major metropolitan areas. The regional technological objective is to promote technological development in less developed areas. For this purpose, physical, scientific and institutional infrastructure is developed in a decentralised pattern by a combination of measures taken at the local and regional levels by national government. 10 A useful distinction can be made according to their focus and activities. Cities with many high-tech production firms but relatively few basic research institutes are technopolises. Conversely 'Science Cities' are areas dominated by basic research institutes, and have relatively few high-tech production firms. These two terms and the types of communities they represent are not mutually exclusive. 11 For example, Silicon Valley in the USA is well-established as both science city and technopolis. The term science city applies best to Tsukuba Science City in Japan, which was consciously planned as a basic research city. From this brief description it can be seen that the technopolis concept has technological, economic and urban development dimensions: the technological and economic dimensions are concerned with technological innovation and technology-led economic development; the urban development dimension involves

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creating an environment which is attractive to highly qualified workers and entrepreneurs as a place to live and work.

THE ROLES OF HIGH-TECH CENTRE POLICY

Facilitating innovation for indigenous development of high technology Since the mid to late 1970s, there has been a general trend towards increasing regional (and local) autonomy with respect to economic and industrial development. During the 1980s this trend focused especially on technology or innovation policies, and there has been marked shift from exogenous (top-down) policies to more endogenous (bottom up) policies. These policies focus on the mobilisation and enhancement of regional technological and industrial resources and are often targeted on assisting small- and medium-sized enterprises (SME) and on creating new technology-based small firms. 12, 13 Furthermore, the high risks of development in high-tech R&D activities, the intersectoral nature of new project studies, and the shortened life-cycle of products have had the result that even large firms are no longer able to generate, independently, the technical advances necessary for their growth. 14 They are, therefore, forced to move from the traditional 'in-house' generation of research and development to cooperative procedures with other firms and academic institutions. ~5 This change provides local communities with the opportunity to carry out indigenous development strategies via HTCs which emphasise regionally owned SMEs and the technological expertise in local HEIs.16, 17 It is generally accepted that HTCs can assist in the transfer of technology from academia to industry through consultancy, research contacts, informal contacts and the formation of spin-off companies, a, 18, 19 The main contributions to technology transfer by HTCs arise from their proximity to the HEIs or centres of research, and the encouragement of contacts between these firms and academics by the HTC management. These factors are favourable to the establishment of informal networks, the more effective use of the physical facilities of HEIs and the encouragement of spin-off firms which enable academics move into the industrial sector. In this way the experience of academic institutions is brought to bear at close range and effectively on industrial operations. An important consideration in the formation and growth of academic spin-off firms is the moral support offered to the scientific entrepreneur in the change from a research or academic environment to an industrial one. This support is often delivered in HTCs by incubator/innovation centres designed to provide small units of accommodation with shared services and business advice. 20 By these means, the process of spin-off can be encouraged and made more certain, thereby adding to the local industrial structure both quantitatively (although initially the effect will be small) and in terms of diversity of technology which will be an important factor in regional innovation in the long run. Furthermore, by mixing incubator/innovation centres with R&D and high-technology production establishments, innovation capacities may be greatly enhanced. The experience of several HTC developments shows how appropriate territorial structuring helps to extend technological performances far beyond the incubation process. 21 The physical proximity of the R&D, design, prototyping and training aspects of both the HEI and companies in a HTC can greatly improve communication, personal relationships and awareness of the resources available to companies. In this way the ability to work together is much improved and innovative connections may be promoted. An aggregation of R&D centres, entrepreneurs and HEIs in a HTC can exhibit a certain level of innovation. But it is not until interpersonal communication

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networks among researchers and entrepreneurs are established that a synergy of innovation will characterise the community, as began to happen in Silicon Valley in the early 1960s. This is the point at which 'critical mass' occurs, and the point which many HTCs will now be approaching. Therefore, a significant value of the HTC lies in its potential for achieving a synergistic rate of technological innovation through assisting the development of dense communication networks among heterogeneous R&D activities. 22

Support for technology-led economic and physical development The widely accepted HTC development strategy assumes that a region's longterm economic viability will depend on its ability to generate and sustain a concentration of business capable of developing new products (or processes) that are based on new technology. For regions faced with a high concentration of older, declining manufacturing industries, HTCs have been viewed as a tool for facilitating economic restructuring through the incubation of new technologybased small- and medium-sized enterprises. For other regions whose economies have been performing well, investment in the new innovation capacities of new technology in HTCs may represent a long-term insurance policy. In either case, a technology-led economic development strategy, when successful, almost always leads to more than just employment growth and new business formation. 19, 23-25 From the empirical evidence that is available, four ways in which HTCs can boost local economic development and increase local innovative capacity can be identified. (1) HTCs can encourage and facilitate the formation and growth of new businesses based upon the research knowledge and expertise available within a H E I or other centre of research. 26 The existence of a HTC, in particular a Science Park, near a H E I encourages researchers to consider the commercial exploitation of their research and offers them a location amenable to this process. 27 HTCs can also play an important role in complementing regional business promotion activities by promoting the establishment of new businesses and by furthering the growth of existing businesses. 28 (2) High-tech centres can also act as a catalyst for change in a region, according to Dalton 29 and Hilpert. 30 They often provide new sources of employment in an area of traditional industries and help to change the image of the area by demonstrating that it can create, attract and support high-tech industry. This effect may extend beyond the HTC because of the opportunities created for existing suppliers to become subcontractors to the new companies, thus widening the benefits and introducing these suppliers to new technologies and skills. (3) HTCs can act as a mechanism to upgrade the technological sophistication and added value of existing industry by providing a location where technical support can be given to local firms which manufacture and market products. (4) HTCs, particularly technopolises, highlight the importance of environmental and infrastructure factors in technology-led economic development. 7 In high-tech endeavors, the main resource is highly skilled people. Quality of life has become a main competitive dimension in regional development strategies related to HTC development, because high-tech industries have tended to establish themselves in areas offering a high-quality of life in order to attract and retain these skilled individuals. 31, 32 Therefore active policies to improve quality of life are usually incorporated when setting up a HTC. As part of such a strategy, an attractive community including housing and cultural facilities can be constructed within the HTC to help attract skilled engineers and scientists from major cities or foreign countries. In summary, the role of the HTC can be identified as helping to solve regional disparities, improving the general climate for innovation and improving

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technology transfer between HEIs and industry. It also provides opportunities to upgrade the environment and infrastructure, particularly in the case of comprehensive urban developments. HTC development plays a vital role in bringing together these elements into an integrated strategy and creating the environment that is required to promote local development in terms of technology and the economy.

OVERVIEW OF KOREA'S TECHNOPOLIS PROGRAMME

Background Korea, in common with other countries, has been confronted with the problems of revitalising industry, falling international competitiveness and persistent regional disparities. However, national industrial location policies over the last three decades have often been criticised because they concentrated on providing large industrial estates in peripheral areas without addressing concerns of industrial structural transformation and indigenous technological innovation. As a result, some cities in the Southeast Coastal Industrial Belt Area, which began to develop in the early 1960s, suffered from obsolete technology and low productivity mainly due to an inability to integrate technological innovation with manufacturing production. 33 A considerable proportion of firms in these areas is also composed of branch plants of large enterprises. These branch plants are rarely allowed to decide on investments in R&D. As a result, the impact of industrial location policies have been less than expected, mainly because local linkages are not extensively developed and spin-off effects on the local economy are very limited. 34, 35 In the eyes of Korean planners and government, HTCs, particularly technopolises offer the potential to integrate high-tech industry and regional development. Therefore, in the late 1980s, central government established a technopolis programme, aiming to strengthen the regional economic structure through the development of new HTCs in peripheral areas. Although the Japanese Technopolis Programme has influenced thinking in Korea, the technopolis concept is not new to Korea. This can be seen from the fact that the National Science Town at Taedok was started in 1973. Previous development initiatives, such as decentralisation of public R&D centres and new towns gave the government useful experience for regional innovation policy. At the same time, some local authorities saw in the development of Taedok a solution to their economic problems and their poor technology base. The technopolis programme in Korea is, in part, an adjunct to national development policies designed to restructure the economy towards high-tech sectors, but it is also a vehicle for regional policy and the dispersal of economic activity away from the overcrowded capital region to medium-sized cities in peripheral regions. Korea's Technopolis Programme has, therefore, been strongly dependent on government support to supply the necessary conditions for high-tech development. 36

Development Three clear phases of technopolis development are evident in Korea: the National Science Town at Taedok in the 1970s and 1980s; the technopolis programme from 1989; and local high-tech industrial parks from the early 1990s. The first development phase began in the 1970s when the National Science Town was established at Taedok. Although there are some parallels with the experience of Tsukuba Science City in Japan, the development of Taedok was also more

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strongly motivated by scientific considerations.36 TST (Taedok Science Town) brings together many national and regional development policy efforts from the last 20 years. The plan represents a concerted attempt by the central government to create a HTC outside the capital region. In practice TST was an ad hoc solution to three pressing problems: 37, 38 the over concentration of population and industrial activities in the Seoul metropolitan area; bottlenecks in the application and admission process to first class universities, most of which are located in Seoul; and a common recognition that the era of heavy and chemical industry would be eclipsed in the next decade and that existing facilities were inadequate for enabling Korea to catch up with the developed countries in advanced technological industries. The second development phase occurred in the late 1980s and drew heavily upon the development experiences of US and Japanese technopolises. Phase-two technopolises differed significantly from the earlier Science Town, because they were intended to be more production-oriented and to promote regional economic development. Korea's basic plan for technopolis development was conceived in 1989 as an adjunct to national economic and industrial development policy designed to steer the economic growth and physical planning of the country as a whole. The Korean Technopolis Programme aims; 36, 39 to promote industrial development by raising the technological level of local business and establishing high-tech industries in peripheral areas; to encourage R&D to ensure sustained regional development; and to create attractive local communities where people can live and work. Nine sites had been designated as technopolises, but only one of them, Kwangju, is being built. The other eight have been re-designed as local high-tech industrial parks. The local high-tech industrial parks represent the third phase of technopolis development in Korea. Similar factors to those used in Japan were taken into consideration in selecting appropriate locations for technopolises by central government. These include proximity to a major city (the mother city), proximity to universities and research institutions, the current agglomeration of industries, and national policies for balanced regional development and good access to roads. 40 The local high-tech industrial parks focus on attracting the plants of high-tech industries and their research laboratories. At the same time residential zones are being planned to accommodate their employees and families. The scale of development is smaller than that of earlier technopolises like Kwangju, because they are intended to be developed by local authorities with only limited support from central government.36 Key features of these three phases of Korea's High-Tech Centre policy development are identified in Fig. 1.

Public involvement and support mechanisms

The development of Korea's Technopolis Programme is closely tied to central government priorities. The dominant role of government can be seen from the following two facts: Taedok Science Town was established as a central government initiative and local authorities were excluded from the initial planning of the technopolis programme. Designated technopolis sites are eligible for limited financial assistance from government in connection with their planning costs. The government also provides indirect financial support for technopolis development through industrial relocation incentives, constructing infrastructure such as roads connecting the sites and housing estates and urban facilities by the Land Development Agency. In addition, central government provides some initial support for incubation and innovation centres adjacent to experimental universities of engineering.

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High-Technology and Regional Development Policy Development

Features

Examples

Science City

First phase

-basic research orientation 1973-1988

Taedok Science Town

-initiative of central government Tedmopolis program

Second phase

-9 sites designated -only one being built

1989-1995

Kwan~ju

Technopolis

-research and production -initiative of central government -very little participation of local authorities High-Tech industrial parks 8 sites

Third phase -originally planned as technopolises but scaled down 1992-

-mass produced by high-tech firms

e.g. Daegn, Jeonju

TaejonCp~d

addition to Taedok Science Town)

-public and private sector collaboration

Fig. 1. Key features of Korea's High-Tech Centre development policy.

However, considerable emphasis is now placed on the role of local authorities in providing basic facilities and the part played by local universities in facilitating technology transfer. Whilst developing the third stage of development of the technopolis programme (local high-tech industrial park), the government realised that local initiatives were needed to reinforce technology-led development. At the same time incoming private-sector companies are regarded as key actors in the technological innovation process. Since 1991 several prefectures and city governments have established so-called 'third sector' development agencies as a private-public sector collaboration to establish local high-tech industrial parks. At present, host prefectures are not supporting R&D and technological linkages, despite the need for technology promotion and information networks. However, in two cases local universities (Korea Advanced Institute of Science and Technology: KAIST in Taejon and Pohang Institute of Technology: PIT in Pohang) have provided this technological support by establishing innovation centres adjacent to their campuses. In summary, the Korean Technopolis Programme is strongly dependent on government support to create the necessary conditions for high-tech development. Several efforts in localities have also been made to support technology transfer, particularly at local universities with high-grade engineering faculties. CASE STUDY: THE DEVELOPMENT OF TAEDOK SCIENCE TOWN AND ITS ROLE FOR REGIONAL DEVELOPMENT Current status

The total area of Taedok Science Town (TST) in 1992 was 6,860 acres. This is about the same size as the central research and education district in Tsukuba Science City in Japan (6,669 acres) and the Research Triangle Park in North K~B19:3-C

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Carolina in the US (6,700 acres). TST has a population of some 25,000 inhabitants. The population will rise to 50,000 by 1995, when the construction of housing estates will be finished. 41 There are two national universities in TST as well as a private college, three administrative offices of government, the Korean Atomic Research Institute and 22 government and private research institutes. A further ten private research laboratories are now under construction. By 1995, there will be total 65 institutes with 20,000 employees. 42 One of the major expected achievements accruing from the implementation of the development plan is that TST, as the largest R & D centre in Korea, will become a national technopolis. As a result, Taedok can be considered a focus for high-tech development in Korea. At the same time, TST will contribute to local economic development. Four significant and distinctive features of Taedok Science Town's development deserve attention. These are its growth (in terms of area and research institutes); the main types of activities; its links with the universities and the industrial estates in its m o t h e r city; and its impact on regional development, including jobs created and local multiplier effects.

Growth The growth of TST is very recent. The area was farming land before designation as the national science town by the government in 1973. The initial area of development was limited to the academic and research area which was 1,078 acres, only 16% of the present area. Five government research institutes and three R & D centres from private firms, as well as Chungnam National University, were operating in this area by 1979. In 1981 the master plan was changed and 38.5% of the TST site was designated as a research and education area so that research facilities could be established there. This research and education area was again increased to 3,202 acres in 1985, 46.6% of the whole site (see Table 1 and Fig. 2).

Table1. Land use allocation according tothe developmentphases

lstmaster plan, 1973-1980(acres)

2ndmaster plan, 1981-1985(acres)

3rdmaster plan, 1986--(acres)

Academic and research Residential Greenbelt Other uses

1,078 (16.4%) 566 (8.2%) 645 (9.8%) 4,328 (65.6%)

2,633 (38.5%) 577 (8.4%) 1,127 (16.4%) 884 (36.7%)

3,203 (46.6%) 577 (8.4%) 1,048 (15.3%) 2,036 (29.7%)

Total

6,617

5,221

6,864

Land use

Source: Oh, D.S. et al. (1992).

Although the academic and research area has increased, the existing research facilities do not cover the whole area. Only four research centres including one college were located by 1985, because the relocation of government institutes took time and private firms were reluctant to establish their R & D centres in TST. This p r o m p t e d central government to actively relocate government research facilities to TST. Most government research institutes in the capital region had to be moved to TST as part of the policy of decentralised central government. These included 12 research institutes, three central government administrative offices and the Korea Institute of Science and Technology (KAIST). The relocation of

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"",7 Ia)

"

1,,%.%'7.%%,'.,%

""

,, ¢.~ZF

~ •

7

',', I

(a) First masterplan (I 973)

(b) Land use map (1992) mare Academic and research area Residential area Commercial and business area Open spaces and green zone Green belt

Fig. 2. Master plan of Taedok Science Town.

KAIST has had an important symbolic function in reinforcing the image of TST as the centre of high-technology development in Korea. Nevertheless, a number of private firms were sceptical of the success of TST before the declaration of the relocation of the third administrative headquarters of central government to Dunsan New Town next to TST, and the publicity associated with the 1993 World Exposition in TST. Most private firms began to construct their research facilities from 1990 onward. 43 Table 2 shows the increasing development of R&D centres and their employees. TST is also the site of a new town project within its area. Undertaken by the Korean Land Development Agency, this began in 1974 and involves 3,842 acres including the housing estate in TST and the surrounding area. 44 1,653 acres (43%) of its area had been fully developed by 1985. Following the second stage of development (1985-1992), 2,189 acres of housing estates had been built for the families of researchers of incoming R&D centres and related personnel. With

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Table 2. Growth o f R&D centres and related institutions in TST." number o f centres (and their employees)

R&D centres and related institutions

1979

1985

Government or public institutes Private institutes Branch offices of government University and colleges

5 (3,879)t 3 (719)

3 (2,350)

1 (1,146)

1

Total

9 (5,744)

4 (2,361)

(11)

1990 11 5 3 1

1992"

(791) (713) (244) (827)

5 (2,685) 26 (5,155) 2 (91)

20 (2,575)

33 (7,931)

Source: Oh, D.S. et al. (1992) *Number of centres then under construction or planned. tFigures in parentheses are the number of employees.

the construction of a new town beside the research centre, TST meets the key requirements for a Science City. Unlike other new towns in Korea, TST also represents the new type of settlement, which combines both living and working families.

Types of activity The institutions in TST are biased toward R&D rather than production. At the planning stage, the government decided that TST researchers should carry out long-range investigations of a basic research nature and not be distracted by short-term product-oriented research. In terms of technology-led economic development, this created an anomaly right from the start. In 1988, 42% of all Korean government research institutes were located in TST and this percentage will increase by 1993. In terms of the major characteristics of R&D centres, there was an interesting change around 1990. As suggested earlier, through large-scale government projects like Expo'93 in Taejon and the relocation of the third central government headquarters from Seoul, the establishment of private R&D has been aggressively promoted. If 32 R&D labs are fully established by 1995, the proportion of private R&D will be two thirds of all research facilities in TST. These private R&D labs differ in both activity and focus from the government institutes. There are typically two levels of R&D activities. One is corporate R&D labs, which are engaged in basic research; the other is division-level labs, which conduct research directly related to the business and manufacturing needs of their particular division-level activities and also focus on the commercialisation of their products for their business. The research institutes of private firms in Taedok are varied in their sectoral pattern of activities, while many government institutes are biased towards basic R&D rather than production. The main sectors of activity are listed in Table 3. This shows that the research activities are becoming diversified through the relocation of research institutes of private firms. This variety of activity is important, because it suggests that the potential of future development in TST as well its mother city Taejon, can be attractive to a wide range of research-focused technologically advanced, and innovative activities, not just to a few specific sectors.

University links and their role in development The concentration of high-level educational institutions in TST means that the site has access to the important resource of highly skilled scientific and technical personnel. Two national universities and one private college are located within the area of TST. They play a pivotal role in cultivating a highly

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Table 3. Sectoral comparison of private R&D centres: numbers (and their employees) Description Comprehensive R&D Electronics, computer telecommunication Precision chemical Bio-engineering New material Mechatronics Optical instrument Aeroplane parts Resource, energy development Others Total (Employees)

1992

1995"

1 (157)t -4 (705) -1 (174) 1 (19) --1 (384) 1 (105)

4 (1,622) 2 (326) 5 (822) 2 (177) 5 (998) 2 (177) 1 (75) 1 (316) -4 (642)

9 (1,544)

26 (5,155)

Source: Korea Science and Engineering Foundation, Development Strategies for the Future: Taedok Science Town (KOSEF, Taejon, 1992). *Planned centres. tFigures in parentheses are the number of employees.

specialised workforce, as well as pursuing the close linkage between research and education. 41 In particular the different roles of the two universities in TST are interesting in respect of high-tech development: Chungnam National University will act as a intermediary between the research centres in TST and the industries in Taejon, because its position in the city is secure as a locally-based national university with a variety of faculties. On the other hand, Korea Advanced Institute of Science and Technology (KAIST) focuses on research activities and has closer linkages with the research centres in TST as well as those in the whole country. Chungnam National University was relocated at the initial stage of development of TST from the inner city of Taejon. It has since developed several programmes for close collaboration with research institutes in TST as well as industries in Taejon city. These collaboration programmes with the R&D centres in TST include the exchange of staff and co-operative research. The university faculty and post-graduate students assist the industrial labs and institutes through consulting and research. At the same time researchers in TST supervise post-graduate students, as the university offers them the status of visiting professor. The university has also been keen to initiate adult education and night courses which would strengthen university-industry links, particularly with the industries in Taejon city. 45 Unlike the locally-based national university, KAIST was established at the end of the 1960s in Seoul with three major objectives: encouraging scientific intellectuals to lead R&D activities in technology; educating students who are gifted in science; and promoting R&D activities through collaboration between university and research institutes. It was relocated to TST in 1990 because of central government's wish to promote TST as the national centre of high-technology. At present KAIST, a successful experimental technological university, is breaking new ground for Korean universities in being exclusively a technological university with only one faculty specialising in different types of engineering training. About 70% of its students are postgraduate students enrolled mainly in masters level courses. MOST (Ministry of Science and Technology) is the major sponsor of its research activities, and it also has strong links with government institutes and the research labs of private firms through the indirect support of central government. A similar situation can be seen in the case of Tsukuba University in Tsukuba Science Town in Japan, because it orients R&D through close contact with research labs.

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Most of the R&D centres of private firms, which have been or will be located in TST, are expected to gain from these direct and functional links with KAIST. The location of KAIST has been evaluated by the incoming private firms as the most crucial locational factor, and recruitment of graduates from the university is one of the main considerations in their decision to settle in the area. 43 In 1992, KAIST planned a business incubator and acquired land for it. The incubator, which is legally part of KAIST, aims to accelerate technology transfer between academic and research institutions and private firms. It is expected that technology entrepreneurs from KAIST or R&D centres in TST, will mature to the point where they can graduate from the incubator and continue their development as viable enterprises. Although it is only at the planning stage, the KAIST incubator is a very interesting example of university efforts to promote technology transfer and spin-offs from the university. 42

The impact on regional development The volume of employment created by the development of TST is relatively small by international standards. Existing institutions have 12,084 employees and the addition of 33 institutions in the future, including two local government branch offices, will provide another 7,900 direct jobs. However, considering the effect of direct job generation in high-tech and related service sectors, the impact of TST on the local economy should not be underestimated. In terms of the generation of new technologies, a major issue has been the poor interaction between public research and the scientific establishment on the one hand, and private sector enterprises on the other, leading to a lack of joint R&D and spin-off firms. To make matters worse, TST has little interaction with the nearby industrial estates in its mother city. Surveys carried out by Park 39 and Chungnam National University 46 reveal that there is very little direct interrelationship between firms on the industrial estates in Taejon and the research institutes in TST in terms of information, marketing and technical consulting linkages. Moreover, the dependence of private firms on their head offices in Seoul means that growth in Taedok covers only a small range of services and products and is restricted to low-level needs. These weak links are unlikely to be enough to create the local 'synergy' which is needed to stimulate the development of new business services firms. This situation reflects the structure of the local economy. The industrial structure of Taejon city has not changed much during the last decade despite the establishment of TST. Table 4 shows that the share of the technology-intensive Table 4. Development of the industrial structure of Taejon: employment

Types of industry*

Resource Assembly Labour intensive Capital intensive Others Total

1980 No. of employees (%)

1990 No. of employees (%)

National average (1990)

3,972 (11.4) 9,813 (28.1) 15,821 (45.2) 2,029 (5.8) 3,415 (9.8)

6,485 (12.3) 17,057 (32.1) 19,587 (36.8) 2,297 (3.7) 7,666 (14.5)

(13.0) (45.8) (23.3) (4.4) (8.5)

35,050 (100%)

53,092 (100%)

(100%)

(%)

*Resource type: food, wood, paper, petroleum, coal, non-metallic, non-ferrous metal. Assembly type: leather, furniture, plastic, fabricated metal, machinery, electric and electronic machinery, transportation equipment, processing machinery. Labour intensive type: textiles, apparel, footwear, rubber. Capital intensive type: industrial chemical, petroleum refinery, iron and steel. Other type: beverage & tobacco, printing, pottery, glass, etc. Source: Ministry of Labour, 1981, 1986, 1991 (referred to S. Park, 1992).

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sector of manufacturing in Taejon, for example, is less than that of the national average. The proportion of employees in capital intensive sectors like chemical, petrol refining and materials is 4.3% in Taejon, compared to a national average of 4.4%. The percentage in electronics and computer hardware is only 5.8%, while the national average is 15%. Therefore, the inducement of research facilities in TST has made only limited impacts on the local economy and has had little synergy effect. Moreover, the spatial separation of research activities from industrial production means that innovation effects are limited. Compared with other major cities in Korea, manufacturing establishments in Taejon, Taedok's mother city, tend to be older and more locally based. Their products are more low-tech in nature. 47 They are more independent but have less sophisticated management and organisational structures and fewer R&D activities than firms in the capital region. 48 These characteristics indicate a need for high-tech R&D linkages with establishments in TST in order to compete with firms with their own R&D labs. On the other hand, other trends suggest that the prospects for the future are not so gloomy as this suggests. The pace of entry of private firms to adjoining industrial areas is accelerating. These firms are attracted by the concentration of research institutes, the favourable price of land, and high accessibility to Seoul on the existing two roads and railways. 49 The local authority expects that this problem may be solved if a substantial increase in private investment to the area can be induced. Expo'93 in Taejon was especially important in providing a suitable impetus to begin to attract industries. In this respect, the city of Taejon is preparing a construction plan, to provide an additional 980 acres of industrial park land next to TST. Some 30 private firms have indicated an interest to build their plants there to link with the research facilities of TST as well as the academic activities of the two universities. 50

CONCLUSION: EVALUATION OF KOREA'S TECHNOPOLIS PROGRAMME AND ITS EXPERIENCE

It is too early to evaluate fully the extent to which Korea's technopolises have fulfilled their roles in promoting regional innovation and technology-led economic development, since most are still at the planning stage. However, the National Science Town at Taedok (TST) was established 20 years ago and is therefore sufficiently developed to provide lessons for future HTC development in Korea. Three critical problems for the future development of technopolises in Korea can be identified. First, the difficulty of attracting private sector R&D and high-tech firms. Industrial R&D labs and high-tech firms remain highly concentrated in the capital region and it is difficult to attract key personnel away from Seoul. 36. 40 Second, technology transfer. Technopolises might achieve only very limited technology transfer, since they do not have incubation policies to encourage the breeding of SMEs. Technology transfer may be further limited by the fact that many of the high-tech firms that technopolises plan to attract will be branch plants. Experience in industrial parks elsewhere suggests that there is little interaction between incoming branch-plant factories and indigenous high-tech industries. 39 Third, policy making and its adoption to local conditions. The top-town nature of policy making means that technopolises may not be suited to local conditions. Technopolis policy is made largely at a national level and a lack of local involvement may mean that local strengths are ignored. However, the experiences of TST shows that these problems can be solved. 36 TST has similar problems stemming largely from its research orientation and a top-down approach to its planning: inadequate development of SMEs; little interaction between R&D centres in TST and the industries in its mother city,

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Taejon; and problems attracting private sector R&D labs and key personnel from Seoul. To solve these problems, central government, local government and local HEIs have developed new approaches. The mother city, Taejon, has planned a high-tech industrial park as an addition to Taedok for the purpose of research-oriented production involving close linkage with the Science Town. Furthermore, KAIST, a university in TST, has planned an incubation centre aiming to accelerate technology transfer between academic and research institutions and private firms. It is expected that scientific entrepreneurs from KAIST or R&D centres in TST will mature to the point where they can graduate from the incubator and continue their development as viable enterprises. The problem of attracting key personnel is being solved by the efforts of the city and central government by providing accommodation in a pleasant living environment. They are also providing an innovative environment through special programmes such as research and staff exchange between HEIs and R&D centres, an information network and constructing good transport links to Seoul. Consequently, TST is now following a strategy which is very supportive of industry and has good prospects for developing the local economy. This approach will influence the further planning of other technopolis sites in Korea. Although unique in several respects, these aspects of Korea's experiences may thus carry policy implications that will be of interest to governments wishing to enhance their country's indigenous technological potential, in particular in developing countries. NOTES I. J. Lowe (1985) Science Park in the UK, in: Lloyd Bank Review 156, pp. 31-42. 2. J. Simie and N. Janes (1986), The Money Map of Defence, in: New Society 31, pp. 179-180. 3. R. Oakey (1984) High Technology Small Firms: Regional Development in Britain and the US, St. Martin's Press, NY. 4. L. Grayson (1993) Science Park: An Experiment in High Technology Transfer, The British Library, London. 5. R . Porter (1989) Science Park - The European Dimension, in: Suman, I-I. (eds) The Role of Science Parks in the Promotion of Innovation and the Transfer of Technology, UKSPA, Birmingham pp. 19-24. 6. S. Tatsuno, The Technopolis Strategy: Japan, High-Technology and the Control of the Twenty-First Century (Prentice Hall, New York, 1986). 7. I. Masser, "By Accident or Design: Some Lessons from Technology Led Local Economic Development Initiatives", Review of Urban and Regional Development Studies 3 (1991) pp. 78-93. 8. K. Fujita, "The High Technology and Regional Development in Japan", International Journal of Urban and Regional Research 12 (1988), pp. 566--593. 9. T. Kawashima and W. Stoehr, "Decentalised Technology Policy: the Case of Japan", Environment and Planning C 6 (1988) pp 427-439. 10. W. Stoehr and R. Poenighaus, "Towards a Data-based Evaluation of the Japanese Technopolis Policy: the Effect of New Technological and Organisational Infrastructure on Urban and Regional Development", Regional Studies 2 6 , 7 (1992), pp. 605-618. I1. M. Rogers and W. Dearing, "Turbocharging Innovation in Three Cities", IEEE Engineering Management Review Spring (1990) pp. 1-14. 12. R. Rothwell (1989) Small Firms, Innovations and Industrial Change, in: Small Business Economics 1, pp. 51--64. 13. M. Dodgson et al. (1991) Regional Technology Policies: The Development of Regional Technology Transfer, in: J. Brotchie et al. (eds), Cities of the 21st Century, Longman Cheshire Essex, pp. 323-328. 14. S. Mariotti and E. Ricotto (1986), Diversification Agreement Among Firms and Innovative Behaviour, Paper to the Conference on Innovation Diffusion, March 14-21, Venice. 15. J. Perrin (1988) New Technologies, Local Synergies and Regional Policies in Europe, in: Aydalot, P. et al. (eds), High Technology Industry and Innovative Environment: The European Experience, Routledge, London, pp. 139-162. 16. M. Luger et al. (1991) Technology in the Garden, The University of North Carolina Press, Chapel Hill. 17. C.S.P. Monck, D.J. Quintas, et al. Science Parks and the Growth of High Technology Firms, Routledge, London, 1990. 18. Lowe (1985). 19. UKSPA (1991), Science Park in Urban and Regional Development, UKSPA, Birmingham. 20. M. Parry (1992), Science Park: The Driving Forces Behind the Concept and their Physical Planning and Development, Paper to the International Symposium on the Development Strategies for Science Town, KOSEF, Taejon.

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21. J. Perrin (1987), A Deconcentrated Technology Policy: Lessons from Sophia Antipolis, in Environment and Planning, Special Issue on Technology Policy. 22. J. Dearing (1989), "Communication Among Researchers in a Science City, Tsukuba, Japan". PhD Dissertation, University of South California. 23. M. Luger et al. (1991). 24. L. Grayson (1992). 25. H. Fieldler (1989), Innovation Centres in the Federal Republic of Germany, in: Suman, H. (eds). The Role of Science Parks in the Promotion of Innovation and the Transfer of Technology, UKSPA, Birmingham, pp. 9-18. 26. A. Strub (1989). The Science Parks in the European Context, in: Suman, H. (eds), op. cit. pp. 29-36. 27. I. Dalton (1993), Setting the Scene on History, Objectives and Resources, in: T. Broadhurst (eds), The Development and Operation of Science Parks, UKSPA, Birmingham, pp. 1-10. 28. H. Fielder (1992) Innovation Zentrum in Deutschland, Osterreich und der Schweiz 1992/93, Wiedler Verlag, Berlin. 29. I. Dalton (1991), Science and Research Park in the UK, in: Business Location Handbook, Beacon, pp. 41-42. 30. U. Hilpert (1991), Regional Innovation and Decentralization; High Tech Industry and Government Policy, Routledge, London. 31. R.W. Similor et al. (eds) (1991), Creating the Technopolis: Linking Technology, Commercialisation and Economic Development, Ballinger, Cambridge, MA. 32. Oakey (1981), High Technology Industry and Industrial Location; The Instrument Industry Example, Tower, Aldershot, Hants. 33. Y.H. Jin and Y. Park, "Development Strategies for High-Tech Industrial Parks in Korea", Proceeding of Korea-UK Joint Symposium (KRSA, 1-21, 1990). 34. S.O. Park (1989), Location of High Technology Industries and Regional Economic Development, Korean Journal of Regional Science 5(2), pp. 1-19 (in Korean). 35. Y.W. Kim et al. (1992), The Applicability of Western Models of Industrial Linkages in Developing Countries, TRPION, Dept of Town & Regional Planning, University of Sheffield. 36. D.S. Oh et al. (1992). 37. D.S. Oh, "Development of Tae-dok Science Town and the Linkages between its R and D and New High-Tech Industry", Proceeding of Korea-U.K. Joint Symposium (KRSA, Taejon, 1990), pp. 113-125. 38. MOST (Ministry of Science and Technology), The Basic Plan of Technobelt in Korea (MOST, Seoul, Korea, 1989) (in Korean). 39. S.O. Park, "Development of High-tech Industrial Park: Strategies and Policy Issue". Proceeding of International Symposium on Experiences of High-Tech Industrial Parks (KRSA, Cheongju, 25-47, 1991). 40. S.O. Park, "Science Parks: Problems and Strategies", Proceeding of International Symposium on the Development Strategiesfor Science Town (KOSEF, Taejon, 235-258, 1992). 41. MOST, Taedok Science Town: Future Development plan of Technocomplex in Korea (MOTI, Seou 1, Korea, 1992) (in Korean). 42. KOSEF (Korea Science and Engineering Foundation) Development Strategies for the Future: Taedok Science Town (KOSEF, Taejon, Korea, 1992) (in Korean). 43. D.S. Oh and M.S. Park, Development Strategies of Taedok Science Town: Legal Regulation for the Conservation of Research Environment (KOSEF, Taejon, Korea, 1992) (in Korean). 44. MOST, Tae-dok-Science Town (MOST, Tae-jon, Korea 1990). 45. D.S. Oh (1991), Planning of High-Tech Industrial Park, Paper to International Symposium on the Experiences of High-Tech Industrial Parks, KRSA, Cheongju, pp. 235-238. 46. Chungnam National University (1990), Taedok Science Town and its Impact on Economic Development of Taejon, CNU (in Korean). 47. Y.W. Kim, "'Organisation and Industrial Linkage in Developing Countries: A Case Study of Less Industralised Region in Korea", PhD Dissertation, University of Sheffield (1991). 48. K. Wessel, Raumstrukturelle Veraenderung im Entwicklungsprozess Suedkoreas (Hoeller und Zwick, Hannover, 199l). 49. D.S. Oh, "'World Exposition 1993 in Taejon and the Role for Regional Development", Paper presented at International Symposium on Expo and Urban Development (KRSA (Korean Section of Regional Science Association), Taejon, Korea, 1991). 50. City of Taejon, The Annual Report of City Development (Taejon, Korea, 1992) (in Korean).