Daedeok Innopolis was designed to link researchers and developers with capitals and funds so that they can run businesses or take share of a business. The main role of the organization is to focus on making the outcomes of R&D produce profits in business. “We are interested in realizing a positive circle in which R&D, commercialization and profits can interact,” said Kang Gye-doo, CEO of Daedeok Innopolis. He added: "DI will be a world-famous cluster that links R&D with capitals from all over the world."
Since 2005, when a special law was enforced to support the Daedeok Cluster, Daedeok Innopolis has enjoyed a successful climb of at least 30%. It raised 80 billion won worth of funds for new businesses. The number of companies it has helped increased up to 900 and these 900 companies' revenue has reached 9 trillion won. The budget for R&D has gone up to 4.7 trillion won. Two of the companies it helped are among 150 ventures whose revenues reach more than 100 billion won.
The magic hands story appealed to members of IASP (International Association of Science Parks) who voted for Korea to become the hosting country of 2010 World Conference of IASP. IASP was established in 1984 with 200,000 companies from 71 countries participating. “It will be an extraordinary opportunity for us to let the world know what is going on in IT, BT, NANO, aero-space and environment fields in Korea and Daedeok Innopolis,” said Mr. Kang.
In the cluster where Daedeok Innopolis is managing, however, a lot of companies are suffering from the aftermath of the economic crisis prevailing around the world. In order to support them financially, DI has decided to spend its R&D budget earlier than scheduled so that companies can get back on track with their funds. DI announced that it would execute 70% of the budget during the first half of the year.
DI will continue to attract new companies from the outside to its cluster. The benefits DI can offer are countless: excellent infrastructure, tax reduction, low land fee, access to R&D power, to name a few. For tax reduction, companies are free from national taxes for the first three years with a 50% reduction for the following two years. They are also exempt from local taxes for seven years with 50% off for the next three years. It will give support of up to 26.1 billion won for those who want to start a business based on their own technology. Maximum financial support reaches up to 2 billion won if nominees exhibit cutting-edge and promising technology. The location of Daedeok Innopolis is another one of DI's merits. It is within a two-hour drive of Seoul. A company in Seoul can finish its work in a day.
Most of all, Daedok Innopolis is home to a great number experts and brainpower if you require advice to handle the technical deadlocks in the cluster. There are 30 leading R&D labs which are ideal for joint ventures. Such high-techs as CDMA, WiBro, and DMB have been outcomes of joint-ventures. The environment is R&D and business friendly. Facilities including schools, malls, et cetera, are well designed for workers and their families. In this sense, it is not strange that seven foreign R&D centers, including ISIS USA, set up their labs in Daedeok Innopolis. In March, DI will sign an agreement to install a joint-R&D center with VTT from Finland. Now DI is focusing on the future. Its first attention is given to making as many small-but-strong companies as possible. Mr. Kang explained that if DI explores companies with cutting-edge technology, supports them financially, and helps them find joint-ventures, small-but-strong companies will sprout like mushrooms in the forest.
Green technologies are also targets DI shoots for. As is well known, green energy is one of the fields in which each country competes for future growth. Hybrid engines and hydrogen batteries for autos are burning battle fields, and to get energy from the wind and the sun, the world has a long way to go. There lies DI's mission. Kang said that DI will attract more companies and brains that have green energy technology and theories in mind.
Interview with Kang Gye-doo
Q: Two months have passed since you were inaugurated as the second Chief Executive Officer of DI. Can you share your experience about DI with us
A: I have focused on the reshuffle of the organization. It was mainly to enhance the efficiency of every sector inside DI. I changed the trees of the organization to emphasize achievement and results. Mutual communication was also one of my priorities. In order to raise productivity, communication among workers and with customers is essential. Connecting industry and campuses with researchers and developers was also one of my concerns.
Q: Is Daejeon, where DI is located, familiar to you You started your career as public servant here in Daejeon.
A: Yes. I spent my first day here in Daejeon 30 years ago. I wonder if it is a coincidence. I can say it is fate. I have a lot of acquaintances and friends here. It is like my hometown. I worked as science-environment budget director in the Ministry of Planning Budget from 2001 to 2002. Then I had the opportunity to scrutinize the budget of state-run R&D organizations.
Q: What is your management philosophy
A: I would like to allocate more of the R&D budget to profitable areas. We have to take on a strategy called 'selection and focus.' It is a 'focusing strategy.' I will expand the budget for market-oriented business models and customer-friendly technology. The connection among technology developers and campuses, and R&D centers should be deepened during my tenure. As I said earlier, I would install inner circles, for example, forums, to enhance communication among workers. Cooperation and co-work are basic elements to run an organization. A strong relationship with overseas companies is also a necessity in the world today. I will broaden networks with Finland, Germany and USA to make Daedeok Innopolis a world famous cluster.
Q: The business environment is getting worse every day. How could you herald the crisis concerning the companies in Daedeok Innopolis
A: I will pour the R&D budget into companies suffering financial difficulties as soon as possible. We have 900 companies here. I will execute about 18 billion Won six months from now. We will help ventures at their critical first steps of business with financial support. Advice for consulting and designing will be helpful for beginners.
