In order to strengthen the capabilities of national defense R&D, the colloquium held to discuss innovative measures of Korea's defense R&D promotion system and strategies for boosting the defense industry.


KISTEP and Korea Institute for Industrial Economics & Trade (KIET) held the 4th National Innovation System (NIS) Policy Colloquium under the theme of “Strengthening the Role of National Defense R&D and New Growth Engines” at El Tower on Aug. 7 (Wed), 2019. Recently, advanced countries such as the U.S. and the EU have been striving to secure cutting edge technological capabilities for their own security, and are active in linking them to their economic growth. Regarding this, the Colloquium was planned to present strategies for innovative national defense R&D promotion and innovative growth in the defense industry to ultimately enhance the investment effectiveness of the national defense R&D and contribute to strengthening the role of the new national growth engine.


The presentations consist of (1) Assessment for national defense R&D innovation and implementation direction for Korean DARPA (Jiho Hwang, Director General, Office of R&D Budget and Feasibility Analysis, KISTEP) and (2) Strategies for innovative growth of defense industry (Youngsu Ann, Executive Director, Center for Defense & Aerospace Industry, KIET), and experts discussion followed.

[▲ Jiho Hwang (Director General, Office of R&D Budget and Feasibility Analysis, KISTEP)]

 

Director General Hwang identified lack of links between policies and programs in Korea's national defense R&D implementation, R&D investment basis, planning and management systems, which have a difficulty in obtaining future high-tech national defense capabilities through technical innovation, and barriers to enter the industry for private sectors as major issues. He proposed national defense R&D innovation strategies such as strengthening the connection and cooperation between the Ministry of National Defense (policy establishment) and the Defence Acquisition Program Administration (action management), strengthening the heavy investment in national defense R&D for developing innovative technologies that are not based on military needs*, a national defense R&D planning and management system, and resolving entry barriers for rapid implementation of private high-tech areas for technology innovation.
* Out of 3.2 trillion won in national defense R&D in 2019, 245.5 billion won (8%) is not based on military needs


“We should establish philosophy and vision for our transformative national defense R&D promotion, and make efforts to specify strategies and requirements through Gap analysis with the goals and status of transformative national defense R&D to promote the Korean DARPA.”

[▲ Youngsu Ann, Exclusive Director, Center for Defense & Aerospace Industry, KIET]


 

Executive Director Ann said that the government's spending on improving defense capabilities, which determines the size of the defense industry’s production, is on a ‘crisis’ that has collapsed for 2 years despite a steady increase in the government’s defense industry’s sales, exports and operating profits.
He explained the needs for “economic and industrial level approaches based on industrial and market characteristics,” “expanding exports and promoting program diversification of defense companies by overcoming domestic demand-dependent structures that amount for 85% of total production,” “inducing national defense R&D system innovation and business leading R&D performance diffusion,” and “creating jobs keep to national defense fiscal investment.”


He emphasized, "The defense industry is a strategic industry, so national capabilities should be united to succeed. We need to create a cross departmental cooperative system including military, diplomacy, security, industry, trade, R&D, and finance, and we also need a control tower for defense policy at the Blue House.

[▲ The 4th NID Policy Colloquium Comprehensive Discussion]


 

The comprehensive discussion was led by Myung Rae Ham (Chairman of the National Defense Experts Committee), with 7 panels of Tae Kim (Director General for Planning and Coordination, Defense Acquisition Program Administration (DAPA)), Joon Soo Park (Research Fellow, Korea Institute for Defense Analysis (KIDA)), Yong Park (Research Fellow, Agency for Defense Development), Jeong Shik Yoon (Director General for Fiscal Planning, Ministry of Economy and Finance (MOEF)), Jong Ho Yoon (Director, Korea Aerospace Industries, Ltd.), Jin Myoung Lee (Reporter of Maekyung Media Group.), Choon-Joo Lee (Professor, Korea National Defense University) and had in-depth discussion about 100 mins.

[▲ Sang-seon Kim (President, KISTEP)]


 

President Sang-seon Kim (KISTEP) expressed, “The major countries’ efforts to achieve both national defense capability and economic growth through high technology innovation is very suggestive for us. We hope to help secure advanced national defense technical skills in our country and make a breakthrough in economic growth in recent years by looking at the assessment and budget framework of the National Defense R&D under the big framework of NIS.”

[▲ Ji-sang Jang (President, KIET)]


 

President Ji-sang Jang (KIET) emphasized through the opening address, “The defense industry should be recognized as the foundation for the creation of new industries with high-tech Test Bed and various technologies under the 4th industrial revolution. However, as sales, exports and profits have been declining due to recent defense industry governance, it is necessary to contribute to job creation as well as national economic development through activating industries and establishing strategies for innovative growth.”

[▲ The 4th NIS Policy Colloquium Commemorative Photograph]