Green growth and future path of R&D

The following is the 30th in a series of articles focusing on the Korean government's "green growth" strategy. The series will also introduce the increasing efforts of major advanced countries of the world to promote a green economy. -- Ed.

Emergence of the green growth paradigm

"Low-carbon, green growth" has become the Lee Myung-bak administration's new paradigm for national development. The president has presented it as a strategy to overcome the global economic crisis with sustainable development and job creation.

Korea was not well-prepared for energy and environmental problems in the process of rapid economic growth and industrialization. As climate change and the natural resources crisis became a real threat, those problems have emerged as major factors in determining a nation's future.

Moreover, they are considered crucial factors for sustainable growth, especially at a time when joblessness continues and a powerful new growth engine has yet to emerge to take over the information technology industry.

Against this backdrop, the Korea Institute of Science and Technology Evaluation and Planning has suggested a new future national research and development model focusing on green growth at a symposium marking the 10th anniversary of its establishment (Figure 1).

This model pursues the harmony of green convergence, creativity and openness of R&D. Specifically, the KISTEP has suggested as follows.

Firstly, government R&D investment should be shifted to a basic research-oriented structure (by increasing its proportion to total government R&D investment from 25.6 percent in 2008 to 50 percent by 2012) and strengthen support for individual small-sized creative researches, basic and original researches with high risk and high return, and long-term stable researches.

Secondly, it is necessary to increase investment in green technologies, convergence and new industries and the service industry to create more jobs and forge future growth engines.

Thirdly, global open innovation needs to be promoted including attracting and utilizing global talent and changing the R&D managing system.

Following the president's declaration of the low carbon, green growth vision, the National Science and Technology Council on Jan. 13 announced the Comprehensive Initiative for Government R&D towards Green Technology.

The plan outlines the vision and goals for national R&D to realize low-carbon, green growth and the direction of future government R&D investment.

The initiative includes the goals of green R&D policies based on its analysis of the current status and environment of Korea's green technologies. Comprehensive R&D strategy and framework are also suggested as an overall goal for the basic plans of relevant government departments (refer to Figure 2).

2. Vision and goals of green technology R&D

The vision of green technology R&D is "to become a green power country through advancement of green technologies." Three goals have been suggested to realize this vision.

The first involves green science and technology capability. It aims to raise Korea's technological level in the field from the current 50-70 percent compared to that of advanced countries to 80 percent by 2012 and 90 percent by 2020.

The second relates to green industrial competitiveness. It aims to increase Korea's share in the global green technology market to 7 percent by 2012 and more than 10 percent by 2020, and create more than 1.6 million green jobs.

The third goal involves environmental sustainability. Korea seeks to rank in the top 20 among the Organization for Economic Cooperation and Development countries by 2012 and in the top 10 by 2020 in terms of environmental sustainability index (ESI).

A total of 27 green technologies have been chosen for intensive development. They were selected from among technology groups suggested by relevant government departments by the criteria of contribution to economic growth, contribution to low-carbon growth and environmental sustainability, strategic importance, expert opinion, priorities set by departments and so on (Figures 3 and 4).

3. Investment direction for green technology R&D

Two directions have been set for green technology R&D investment -- strategically boosting investment in green R&D and increasing investment in the 27 core green technologies.

Firstly, investment in R&D of green technologies that have direct impact on economic growth, low-carbon growth and environmental sustainability will be doubled by 2012 from 1 trillion won in 2008 (Table 1).

Secondly, the plan aims to more than double investment in the 27 core green technologies by 2012 from 0.8 trillion won in 2008 to more than 1.6 trillion won. Investment in other green technologies will be maintained at average or lower levels.

There are three different investment strategies. In the short term, investment for growth engine technologies will be executed intensively for five to 10 years and will be reduced after technological or industrial goals are met. In the mid-long term, to create new markets and prepare for its demands, investment will be made for basic and pioneering researches in a period spanning 10 to 20 years. Finally, green technologies necessary to prepare for future economic, environmental and social demands need to be developed continuously for more than 20 years.

4. Green technology development strategy and future path

The initiative offers four broad strategies for development of green technologies.

The first is to promote the convergence of green technologies. Major tasks are as follows: 1) strengthening a supporting system for creative and challenging green convergence research, 2) building a planning system to develop green convergence technology projects, 3) forming a taskforce for long-term development of green convergence technologies and technological development to create new markets.

The second strategy is to strengthen basic and pioneering researches. It involves increasing investment in basic researches for green technologies, securing basic and core eco-friendly technologies, developing and investing in future energy to promote mid-long term energy independence and expanding basic and pioneering researches to cope with climate change. Investment in green technologies needs to be increased from 17 percent of total government R&D investment in 2007 to 35 percent by 2012. A major task is to offer incentives for individual basic researches to attract young scientists and promote creative projects.

The third one is to convert existing industries into eco-friendly and new growth engine industries. One major task is to improve energy efficiency to save energy and reduce greenhouse gas emissions. Another is to promote R&D in the field of energy and environment-related services to make manufacturing and service industries more eco-friendly.

The final strategy involves establishing infrastructure. It includes developing R&D manpower, establishing R&D hubs, supporting technology transfer and commercialization and building international cooperation network systems. Major tasks are to attract and nurture green technology manpower, to strengthen a survey and forecast system of mid-long term demands for green technologies and manpower by technology field and level and to form green technology clusters and test-beds.

If these strategies are implemented through government R&D programs in the future, the environmental sustainability index which indicates national level of low-carbon, green growth will rise. Furthermore, it will also contribute to sustainable economic growth and job creation through development of green technologies and industries.

By Lee Jang-Jae