https://doi.org/10.7165/wtr17a0829.16 OPEN ACCESS How Should Techno Parks Innovate to Support Start-ups and Small and Medium-Sized Enterprises Effectively in the Era of the Fourth Industrial Revolution? Inje Cho1, Eung-Hyun Lee2, Hoonje Cho3* 1 CEO of Actnerlab 2 Researcher of World Technopolis Association 3 Invited Professor of Chungnam National University Abstract In 1995, the Republic of Korea started to establish Techno Park (TP) in order to develop the regional industry while promoting the balanced development of the land. By 2008, 18TPs were established nationwide and have become cradles for developing local industries. And recently evolved forms of TP such as Daedeok Techno Valley and Pangyo Techno Valley emerged. In addition, 19 Centers for Creative Economy and Innovation (CCEI) were established nationwide and Tech-Incubator Program for start-ups (TIPS) was introduced to support and mentor start-ups. TPs in Korea become bureaucratic in course of time, and the new trial of innovation of TP is needed. In Korea, professional TIPS-accelerators mentoring and investing start-ups have a history of only five years. But they support and mentor start-ups efficiently, and have obtained good results. In this paper, we propose that TP attract TIPS-accelerators actively and collaborate with each other to support and mentor start-ups and SMEs effectively. Keywords Technopark, TIPS, Accelerator, Start-up and SMEs, Mentoring and nurturing Ⅰ. INTRODUCTION government’s dedication to the development of science and technology over the last 40 years. It is a powerful example of Developments in science and technology can have pro- how the growth of science and technology in a country is found effects on a country’s economic growth and employ- linked to its economic development. (Oh, 2008; Oh and Nur, ment rate. The Republic of Korea had joined the ranks of 2016; Parry 2014) developed countries at an incredibly rapid pace following a The government of the Republic of Korea has supported a period of war and widespread destitution largely due to the large, long-term research fund for professors in science, tech- nology, engineering, and mathematics (STEM). They estab- *Correspondence to : Dr. Hoonje Cho lished national research institutes for various STEM fields and Invited Professor of Chungnam National University and COO of Makersvill, Republic of Korea E-mail : [email protected] hoped to create synergistic effects by intensively supported World Technopolis Review and managing each field at a national level. These national re- Copyright©World Technopolis Association search institutes were able to pursue large-scale projects that This is an open-access article distributed under the terms of the Creative Commons Attri- bution Non-Commercial License(http://creativecommons.org/licenses/by-nc/3.0) which permits universities and private companies were financially incapable unrestricted noncommercial use, distribution, and reproduction in any medium, provided the original work is properly cited of. Researchers from these institutes have gone on to make 2017 Copyright©World Technopolis Association 1 Inje Cho, Eung-Hyun Lee, and Hoonje Cho Incheon Metro.city TP 1998. 40ea (631million won) Logistics, Automotive Industry, Metal Machine, Data Communication Gyeonggi-do(state) TP 1998. 93ea (6,683million won) Tele Communication, Biotechnology, Culture Contents, Logistics Chungcheongnam-do(state) TP Gyeongsangbuk-do(state) TP 1998. 129ea (9,353million won) 1998. 69ea (756million won) Electronic Information, Automotive Industry, Electronic Information, New Material, Biotechnology, Hi-Tech Culture Biological Science, Culture Tour Gwangju Metro.city TP Daegu Metro.city TP 1997. 60ea (1,397million won) 1998. 136ea (2,255million won) Optics, Automotive Industry Fiber Industry, Mechatronics, Information Appliances, Design Electronic Information, Biotechnology Fig. 1. The first 6 TPs established in Korea Source: authors Gangwon-do(state) TP Pohang City TP 2003. 62ea (1,185million won) 2000. 51ea (1,481million won) Medical Appliances, Biotechnology, Electronic Information, New Material, New Material, Travels Biotechnology Chungcheongbuk-do(state) TP Ulsan Metro.city TP 2005. 55ea (873million won) 2003. 123ea (1,209million won) Semiconductor, Next Ceneration Battery, Fine Chemicals, Automotive Industry, Electric-Electronic, Biotechnology Shipbuilding Jeollabuk-do(state) TP Busan Metro.city TP 2003. 31ea (217million won) 1999. 69ea (969million won) RFT, Automotive Industry, Ocean Science, Machinery, Culture Industry Media-Film Jeollanam-do(state) TP Gyeongsangnam-do(state) TP 2003. 47ea (303million won) 2000. 176ea (2,812million won) Bionics, New Material, Shipbuilding, Robot, Biotechnoloegy, Machinery, Logistics, Culture Tour Airplane Fig. 2. The second 8 TPs established in Korea Source: authors profound contributions at various STEM colleges, universities, also by increasing the sales of large corporations. (Oh, 2008; and large enterprise research institutes such as Samsung, Oh and Nur, 2016; Parry 2014) Hyundai Motors and LG. As such, not only did they contribute To promote widespread industrialization, the government to the nation’s economy by continuing STEM research, but established the technoparks (TP) to contribute to technologi- 2 2017 Copyright©World Technopolis Association https://doi.org/10.7165/wtr17a0829.16 Fig. 3. The third 4 TPs established in Korea Source: authors cal ventures on a local level. Local governments aimed to de- followed by eight in 2005 and four in 2008, for a total of 18 TPs velop high-value-added industries, such as semiconductors, across the Republic of Korea. As planned, TPs played the role displays, automobiles, and electronics, to provide quality jobs of both a medium and a catalyst for developing local indus- and raise tax revenue for local residents. The national govern- tries. The first TPs were established in Gyeonggi province, ment highly supported these aims, and sought the research of Daegu city, Gyeongbuk province, Chungnam province, highly educated scientists and engineers to develop them. Incheon city and Gwangju city (Figure 1). They looked to the example of the German local government The second 8 TPs were established in Busan city, Pohang and the Fraunhofer Institute, which had 66 sectors across the city, Chungbuk province, Jeonnam province, Jeonbuk prov- country. The research and technology established at the ince, Gangwon province, Gyeongnam province and Ulsan city Fraunhofer Institute were either sold to or leased to compa- (Figure 2). The last four TPs were created as private TPs and nies, which led to economic development and employment later converted to government-funded TPs (Figure 3). Thus, creation. The Fraunhofer Institute contributed to the creation there was one TP for each of the 16 administrative districts of a large number of powerful small and medium-sized enter- with the exception of Gyeonggi province which had a rela- prises in Germany. Similarly, Korea’s government established tively large economic output and was given two TPs (Figure 18 TPs throughout the country with local governments to pro- 4). In the case of Daejeon city, the TP was created in close mote the balanced development of national land. The Repub- connection with the technical personnel from Daedeok Sci- lic of Korea is divided into nine provinces, six metropolitan ence Complex and eventually Daedeok Techno Valley —the cities, and Seoul city which is the capital of the Republic of largest TP in Daejeon— was built near Daedeok Science Com- Korea. In the early stages of TP, it was thought to be very effi- plex (Figure 5). (Oh, 2008; Oh and Nur, 2016) cient to commercialize the technology of engineers and scien- In addition to Daejeon TP, the TPs in Gyeonggi, Chungnam, tists who had studied for a long time. (Oh, 2008; Oh and Nur, Chungbuk, Daegu, Gyeongbuk, and Busan are known to per- 2016; Kanayama, 2015) form well. TPs were established in the days of President Kim Young- There are several TP spaces in a city or a province. TPs were Sam 20 years ago, and then expanded upon during the follow- established in universities as well as industrial complexes. TPs ing president’s term. The first six TPs were created in 1996, in universities aimed to create a synergistic connection with 2017 Copyright©World Technopolis Association 3 Inje Cho, Eung-Hyun Lee, and Hoonje Cho Incheon Metro.city Gyeonggi-do(state) Gangwon-do(state) Seoul Metro.city Chungcheongbuk-do(state) Chungcheongnam-do(state) Gyeongsangbuk-do(state) Daegu Metro.city Daejeon Metro.city Pohang City Jeollabuk-do(state) Gyeongsangnam-do(state) Gwangju Metro.city Ulsan Metro.city Busan Metro.city Jeollanam-do(state) Jeju City Fig. 4. Cities where TP’s were established in Korea Source: authors Yuseong-gu Heavy Ion Accelerator Daedeock KAERI Techno Daejeon Metro.city Valley ADD KRICT KIMM KIER KSF NFRI KRISS ETRI KARI KIGAM KRIBB KAIST CNU Fig. 5. Daedeok Techno-valley where Daejeon TP is and main research facilities of Daedeok Science Town Source: authors the incubation center, which is the university’s own organiza- company founded by a professor at the university, or a com- tion (the authors interpret the incubator center as a kind of TP pany founded by scientists and engineers with high-value space). The TP space in a university may be occupied by a technology. Companies residing in the university’s TP space 4 2017 Copyright©World Technopolis Association https://doi.org/10.7165/wtr17a0829.16 Pangyo Techno Valley Pangyo Pangyo StartUp Campus Global R&D Center HANHWA Tech WIN