National System of Innovation and Transition Countries : A Comparative Analysis of Korea and China

This paper develops an analytical framework by comparing two idiosyncratic national systems of innovation, namely Korea and China. Four generic institutions and their functions in the system are analyzed: government, science and technology policy, industry, research and development (R&D) activities, education system and human resource development, and the interaction and linkage among players. First, the study found that the role of government was decisive in guiding and promoting the technological development in both countries. Second, Korea’s innovation system is based on large firms and efficient interactions among players of the National System of Innovation (NSI) as well as high social commitment in education while Chinese economic structure promoted the development of low and medium technology oriented, scale intensive industries. Third, Korea pursues the idea of techno-nationalism in building its national capability of innovation, while China embraces an ideology of techno-hybrid regime attracting foreign direct investment and international joint venture as an important means of acquiring advanced technology. This paper argues, based on these contrasts, that the persistence of a strong role of government and existing institutional set-up rejects that the current convergence view of a single best organizational and policy structure for the construction of the NSI and national strategy of technology development is essential to be the best. In fact, it suggests a more viable alternative model of coping with a country-specific institutional arrangement in Korea and China.