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Global ProductionㆍInnovation Networks and Innovative Growth

Author Cho, Jaehan et al. Date 2018.12.07 Page
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The concept of “innovative growth” is emerging as central to the government’s economic agenda but it has been pointed out that it lacks a clear concept and implementation plan for its objectives. The government has recently begun to discuss strategies and propose tasks on innovation in earnest but faces criticism that specific policies are not clearly differentiated from those of previous administrations. Despite the recent emergence of new technologies and the expectation that the Fourth Industrial Revolution (4IR) based on them will dramatically change the existing economy, the government’s discussion of innovative growth is limited to R&D investment in the science and technology sector and has not seriously weighted the economic implications of 4IR.

 

This research is aimed at discussing and determining the implications carried by important changes in the global economy resulting from 4IR for government economic policy. In doing so, we argue the need for supplemental policies that address recent developments in globalization in discussions on innovation growth centered on the development of new technologies. To this end, this study attempts to discuss the problem in three main aspects. First, in the 4IR, we explain why and why global production methods for innovative growth are needed. Second, we evaluate new policies for production and innovation through current Korean global networks. Through this process, it provides implications for the current government’s global strategy for innovation policy and policy supplementation.

 

The report comprises five chapters: Chapter 1 introduces recent government announcements regarding innovative growth and presents the need for globalization strategies to supplement existing innovation policies. Chapter 2 describes the importance and implications of changes in global production during 4IR and the importance of enhancing global competitiveness in response to changes in global production through a discussion on the path from innovation, productivity and global competitiveness that leads to economic growth. Chapter 3 evaluates the current network between the global economy and the domestic economy with empirical data and discusses policy implications for responding to new challenges in the global

economy. Finally, Chapter 4 proposes strategies and policy directions to support the establishment of new global production and innovation networks for enhancing global competitiveness in response to changes in the global value chain during the 4IR. Chapter 5 summarizes the findings of the research, discusses its limitations and suggests future directions for study.