Wednesday, July 29, 2015

A snapshot of Korea's centers for creative economy and innovation

The Korea Joongang Daily today carried a very informative article on the current status of this nation's new network of creative economy and innovation centers.  The headline of the article, "Outside Seoul, new centers have a sleepy feeling," may be a bit misleading and it reminds me somewhat of comments frequently made about the new city of Songdo, where I live.  It seems to me that vacant space is something to be expected and "comes with the territory" when you build either a new city or a new nationwide network of venture startup centers.
As noted in the article and shown in the accompanying graphic, the creative economy centers were allocated to 17 cities and provinces around Korea and matched up with major companies, including the 10 largest conglomerates.  The overall tone of the article is largely critical and it makes some important points.  One is that the functions of the new creative economy centers overlap with existing techno-parks.  Another is that initiatives such as this tend to rise or fall at five year intervals along with changes in presidential administrations.  Finally, the article questions the depth of commitment to this network of centers by Korea's large conglomerates.  It quotes an executive from one as follows “I am not sure what’s going to happen [with the creative economy centers] in three years,” said an executive from one of the participating conglomerates who is now dispatched to a center. “There is a saying already that the centers will be gone at the turn of the administration. We also think the centers will pretty much be temporary.”   We shall all see.   In fact, I suspect that the digital network revolution has unleashed forces that demand change even from the conglomerates which led Korea's development over recent decades.  That sort of change inevitably requires strengthening the nation's venture startup ecosystem.

Friday, July 24, 2015

Korea's creative economy and startup ecosystem: a personal note

Those who check this blog on occasion will know that my posts have been few and far between for the past month or so.  This is not for lack of interesting developments here in Korea.  To the contrary, so much has happened that I simply haven't had the time to share it with you.  However, I can report that the creative economy initiative of the Park Geun-hye administration appears to be alive and well.
In late June, as reported in an earlier post, I was in the island province of Jeju for meetings and research relating to South Korea's smart grid initiative.  Coincidentally, President Park Geun-hye visited Jeju City to dedicate another innovation center.  More recently, as reported in the  Korea Joongang Daily, the CJ Group joined the central and Seoul city governments in opening another such center, as shown in the accompanying photo.
Almost immediately upon my return to SUNY Korea from Jeju, I welcomed Danny Crichton to our campus for a two week visit, during which he and I co-taught (with Danny doing by far the bulk of the teaching on a subject in which he is already an expert) a Stony Brook University course on "How to Build a Startup."  Our students were 35 Korea University undergraduate juniors and seniors, along with one graduate student from the Department of Technology and Society here.  Danny and I first met when he was a Fulbright student scholar and I was a visiting professor at KAIST in Daejon.  We've stayed in touch and collaborated on different activities since.   Danny has posted much of the course content on his website and I encourage you to take a look at this link or through our SUNY Korea course website here!   The course was a great experience for the instructors, our graduate teaching assistant, Mr. Feng Jin and visitors.   It provided everyone with a fresh perspective on how current Silicon Valley startup practices stack up against one of the central challenges Korea faces to build a creative economy -- breaking into the global market for mobile software content and services!
The creative economy and the important role of startup ventures in it, will not happen in Korea overnight.  The change may indeed be slow and generational.   However, even for someone who lives and works in Korea, there is perceptible movement and change!

Thursday, July 9, 2015

Korea ranks fourth in smartphone penetration

One of the remarkable changes occurring in the world these days is the extremely rapid diffusion of smartphones.  As reported widely in the local press, a new study shows that South Korea ranks fourth in the world in smartphone penetration.  The Korea Joongang Daily, in describing a report issued by the research arm of KT, noted that " of the biggest changes in the global market this year has been the rapid rise in new markets, such as Thailand, in the use of smartphones. In that country, the smartphone penetration rate rose 23.7 percentage points in one year. Two out of three Thais (63.7 percent) now carry a smartphone. Other emerging markets such as Brazil, Malaysia, Vietnam, Poland, Argentina, Turkey, Russia and Indonesia saw an increase in penetration of more than 15 percentage points over the past year."