The OECD Review of Innovation Policy for Korea 2023 is the 34th in a series of OECD Country Reviews of Innovation Policy (https://www.oecd.org/sti/inno/oecd-reviews-of-innovation-policy) and the third one which covers Korea (following the OECD Reviews of Innovation Policy: Korea 2009 and the OECD Reviews of Innovation Policy: Industry and Technology Policies in Korea [2014]). This Review was requested by the Ministry of Science and ICT (MSIT) and the Science and Technology Policy Institute (STEPI).

The Korean success story of economic catch-up is widely recognised as a prime example of achieving socio-economic growth and development. This accomplishment was made possible by the science, technology and innovation (STI) ecosystem,which played a critical role in integrating new technology from abroad. This development has helped Korea sustain rapid progress towards the global innovation frontier with the potential to lead global markets in crucial digital technologies such as in 6G infrastructure.

This chapter presents the overall assessment and recommendations of the review. The recommendations are categorised according to the three pillars of cross-cutting, business innovation and research system and linkages recommendations. The assessment is structured following the chronological order of the review, with an initial overview of the Korean innovation system, its evolution and challenges for the future, followed by a comprehensive analysis of business sector R&D and innovation, the production, circulation and diffusion of knowledge as well as governance for a new era of innovation in Korea.

This chapter sets out an overarching framework for Korea’s National Innovation System. It starts by summarising Korea’s past and current economic performance by way of international comparison. Next, it highlights Korea’s innovation system’s key strengths, given its preparedness for transitional challenges, including the digital transformation, its growth in labour and multifactor productivity and innovation inputs. Subsequently, it elaborates on Korea’s industry structure and how it sets the conditions for innovation, particularly regarding knowledge-intensive activities. Pursuant to a discussion of Korea’s current positioning in global value chains and the impact it has on technological sovereignty and potential for innovation, this chapter finally addresses Korea’s particular vulnerabilities in the face of arising societal challenges, notably the green transition and population aging, and how these may affect framework conditions for innovation.

This chapter reviews the business sector’s research and development (R&D) and innovation performance in Korea, drawing on extensive qualitative and quantitative analysis, including a benchmarking of the country’s technology specialisation in digital and green technologies. It highlights the challenges posed by the polarisation of business innovation performance across different sectors and between larger and smaller firms. Finally, it discusses the recent policy reforms taken to address these imbalances as well as the need for adjusting the policy mix for business innovation to ensure Korea’s business sector can take seize the opportunities of the digital and green transitions.

This chapter provides an overview of the research and development performance of Korea’s higher education institutions (HEIs) and public research institutes (PRIs). Following an introduction of different bodies constituting the HEI and PRI system, the chapter explores different aspects of the HEIs and government research institutes. Finally, it investigates whether the missions, the funding structure and the governance system of each body support high-quality research and the reallocation of resources to new areas of economic and societal relevance.

This chapter discusses the historic development and current state of the governance framework of Korea's science, technology and innovation (STI) system. This framework provides strategic orientation to the system, aims to ensure the necessary co‑ordination to align actors’ plans and resources and lead the implementation of related policies. The chapter also assesses the potential of this governance framework to help Korea face current and future challenges.