A University of Sussex DPhil thesis Available online via Sussex Research Online: http://sro.sussex.ac.uk/ This thesis is protected by copyright which belongs to the author. This thesis cannot be reproduced or quoted extensively from without first obtaining permission in writing from the Author The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the Author When referring to this work, full bibliographic details including the author, title, awarding institution and date of the thesis must be given Please visit Sussex Research Online for more information and further details Power, Policy and Conflict: the Politics of Regional System of Innovation in Gyeonggi province, South Korea Sangwoo Shin Submitted in accordance with the requirement for the degree of Doctor of Philosophy SPRU – SCIENCE AND TECHNOLOGY POLICY RESEARCH UNIVERSITY OF SUSSEX Brighton, UK, 2016 DECLARATION I HEREBY DECLARE THAT THIS THESIS HAS NOT BEEN SUBMITTED, EITHER IN THE SAME OR DIFFERENT FORM, TO THIS OR ANY OTHER UNIVERSITY FOR A DEGREE. SIGNATURE: DATE: ACKNOWLEDGEMENTS At first, I would like to express my thanks to Professor Ed Steinmueller for his support and invaluable help throughout the research for this thesis. I owe a large debt to each member of SPRU for being a constant source of ideas and intellectual stimulant. Besides my supervisor, I would like to thank the rest of my thesis committee: Dr. Caitriona McLeish and Professor Andrew Tylecote for their insightful comments and encouragement, but also for the hard question which incented me to widen my research from various perspectives. My sincere thanks also goes to Dr. Won-Young Lee and Dr. Deok Soon Yim, who provided me an opportunity to join his project as assistant. Without their precious supports it would not be possible to conduct this research. I am also grateful to all the interviewees in Gyeonggi Province who shared their knowledge and insights for my research work. They truly inspired me each step of the way. I thank my collegues in for the stimulating discussions, for the sleepless nights we were working together, and for all the fun we have had in last few years. Also I thank Korean society, whose support played a part in making my life at University less stressful. Lastly, and most importantly, I would like thank to my parents and brother for their concern and love. I genuinely could not have achieved this without them all. UNIVERSITY OF SUSSEX SCIENCE AND TECHNOLOGY POLICY STUDIES Submission for the degree of DPhil Power, Policy and Conflict: the Politics of Regional System of Innovation in Gyeonggi province, South Korea Abstract Academic literature has examined how change in a regional system of innovation involves interactions between various actors that participate in regional economic development. This thesis examines similar processes, but also explores the ways in which various factors characterize change in regional systems of innovation. Without making assumptions about the political nature of the interactions among actors and the contexts surrounding them, the thesis advances the idea of a non-economic approach to the processes of regional development and industrial policy. In this thesis, a strategic relational perspective to regional systems of innovation comprises the conceptual framework that provides an in-depth explanation of the analysis of experiences. The single case study is employed for the operationalization of the strategic-relational perspective in the context of Gyeonggi province, South Korea, as a highly industrialized region in a post catching-up economy. The fieldwork is based on the collection and analysis of interviews and participant observation. The interpretation of empirical evidence through the strategic relational perspective reveals tension in the governance context, which has not met the interests of regional policy makers concerning regional development and industrial policy in Gyeonggi province. Thus, the thesis portrays the parts played by the provincial government in the innovation system affecting innovative capacity and performance, and identifies the political tensions that emerged and that seemed to be important in these processes. i Abbreviations ASV Anan Science Valley BNDP Balanced National Development Plan CNTP Comprehensive National Territorial Plan CRRPA Capital Region Readjustment Plan Act GAFIC Gyeonggi Association of Foreign Invested Companies GERD Gross domestic expenditure on Research and Development GRDP Gross Regional Domestic Product GRI Gyeonggi Research Institute GRRC Gyeonggi Regional Research Centre GSBC Gyeonggi Small Business Centre GSTEP Gyeonggi Institute for Science and Technology Promotion GTDP Gyeonggi Technology Development Programmes IICC Industrial Innovation Cluster Committees IMT Intelligent Mechatronics KERI Korea Electric Research Institute KICOX Korea Industrial Complex Cooperation KIPO Korea Intellectual Property Office KITECH Korea Institute of Industrial Technology KLRI Korea Legislation Research Institute KOTRI Korea High Tech Textile Research Institute KOSIS Korean Statistical Information Service KTL Korea Testing Laboratory MEST The Ministry of Education, Science and Technology MKE The Ministry of Knowledge and Economy MOLIT The Ministry of Land, Infrastructure and Transport MOFE The Ministry of Finance and Economy MOSF The Ministry of Strategy and Finance NSTC The National Science and Technology Council PACEST The Presidential Advisory Council on Education, Science and Technology PCBND The Presidential Committee on Balanced National Development PCRD The Presidential Committee of Regional Development RIC Regional Innovation Centre RRC Regional Research Centre SMBA Small and Medium Business Administration SMIPC SMEs Industry Promotion Corporation STBP Science and Technology Basic Plan STEPI Science and Technology Policy Institute TIC Technology Innovation Centre ii Contents 1 Introduction ........................................................................................................................ 1 1.1 Background context ......................................................................................................... 3 1.2 Theoretical context ........................................................................................................ 10 1.3 Research proposition and research questions ............................................................... 14 1.4 Thesis layout .................................................................................................................. 18 2 Theoretical perspectives and framework to understand changes in the regional system of innovation in South Korea ................................................................................................ 21 2.1 Perspectives on regional economy and growth ............................................................. 22 2.2 Regional system of innovation ....................................................................................... 25 2.2.1 The concept ............................................................................................................... 25 2.2.2 Change of RSIs ........................................................................................................... 32 2.3 Political perspective of economic development in South Korea .................................... 38 2.3.1 The East Asia development ....................................................................................... 38 2.3.2 Varieties of Capitalism perspective ........................................................................... 42 2.4 The strategic relational perspective and a conceptual scheme ..................................... 46 2.4.1 Relational concept of power ..................................................................................... 47 2.4.2 Strategic relational perspective in RSI ....................................................................... 49 2.4.3 A conceptual scheme ................................................................................................ 52 2.5 Summary ........................................................................................................................ 54 3 Research design and selection of case .............................................................................. 56 3.1 Methodological approach .............................................................................................. 57 3.2 The selection of case ...................................................................................................... 61 3.3 Operationalization of the main concepts of the conceptual scheme ............................. 66 3.4 Limitation of the single case study approach ................................................................ 67 3.5 Concluding reflections .................................................................................................... 69 4 Regional politics in South Korea: historical antecedents of contemporary process ........... 70 4.1 Earlier history ................................................................................................................. 71 4.2 Nation rebuilding between 1948 and 1995 ................................................................... 73 4.2.1 Building the regional autonomy ................................................................................ 73 4.2.2 The authoritarian regime .........................................................................................