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Problems of technology commercialization of SMEs and the challenges

Author Yang, Hyunbong Date 2017.01.23 Issue No 4
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The Korean government has gradually expanded R&D budget to meet the needs of the technology competence era with the government R&D budget reaching 19.1 trillion won in 2016.

 

The success rate of technology development of SMEs in accordance with the government R&D budget support, reached 96%. However, that of commercialization is only 48%. It means that the performance of commercialization in accordance with government support of R&D budget does not seem sufficient.

●Despite a high success rate of technology development, possibility of development is low because more than 50% of SMEs cannot push for the commercialization.

 

SMEs are facing many challenges, for example, a lack of commercialization funds of development technology, and professionals of commercialization, etc. However, support system by the Korean government is not sufficient.

●Problems of the Korean government R&D supporting funds are as follows: a development stage is excessively focused among other R&D stages such as a planning stage or a commercialization stage, and connectivity between businesses is not sufficient to systematically support technology commercialization.

 

The government needs to expand supports for a planning and a commercialization stage, which are before and after R&D stages, not only stages of technology development of SMEs. Besides, it needs to establish support systems of technology commercialization of all life cycle, and create a technology commercialization ecosystem.

● When distributing R&D budget of SMEs, support measures need to expand from focusing the budget on a technology development stage to a R&D planning (technical feasibility, profitability, and marketability) and a commercialization stage (consulting, market opening, and VC connectivity, etc.).

● In order to create a technology commercialization ecosystem, the followings are necessary: measures to secure funds for commercialization and policy, to support and produce commercialization, to operate professional organizations to support technical commercialization, and to introduce investor programs, etc.