Industrial Cluster Policies of the Korean Government in the 2000s: the Case of Daejeon
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On the basis of export-oriented industrialization, the Korean economy has grown very rapidly in the past five decades. The growth, however, has increased economic and social gaps not only between the Western and Eastern regions but also between the capital and the rest of Korea. To reduce the gaps, past governments of Korea adopted many policies. However, the policies did not resolve the problem. Rather the problem became more serious in the recent past, mainly because of slowing of economic growth. To tackle the problem, the government of Roh, Mu-Hyun(2003-2007), launched a series of radical policies and programs to decentralize administrative activities of the capital region and stimulate economic growth in less developed regions, based on regional innovation systems and industrial cluster concepts. This paper highlights the Roh government’s approach to resolving the problem, and makes some comments on the innovation cluster strategy by investigating the realities appearing in a major city, Daejeon. It concludes that many ministries of the Korean central government created various competing, undifferentiated programs that were assigned too much money and energy, and drained resources from other governmental activities. In fact, very few programs show positive signs of achieving the goals of innovation in less developed regions, balancing the growth gaps between well-off regions and the rest of Korea, and generating overall economic growth for the country.
Abstract
On the basis of export-oriented industrialization, the Korean economy has grown very rapidly in the past five decades. The growth, however, has increased economic and social gaps not only between the Western and Eastern regions but also between the capital and the rest of Korea. To reduce the gaps, past governments of Korea adopted many policies. However, the policies did not resolve the problem. Rather the problem became more serious in the recent past, mainly because of slowing of economic growth. To tackle the problem, the government of Roh, Mu-Hyun(2003-2007), launched a series of radical policies and programs to decentralize administrative activities of the capital region and stimulate economic growth in less developed regions, based on regional innovation systems and industrial cluster concepts. This paper highlights the Roh government’s approach to resolving the problem, and makes some comments on the innovation cluster strategy by investigating the realities appearing in a major city, Daejeon. It concludes that many ministries of the Korean central government created various competing, undifferentiated programs that were assigned too much money and energy, and drained resources from other governmental activities. In fact, very few programs show positive signs of achieving the goals of innovation in less developed regions, balancing the growth gaps between well-off regions and the rest of Korea, and generating overall economic growth for the country.
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