Science and technology policies for industrialization of developing countries

Science and technology have been increasingly looked upon by many countries, particularly the so-called developing countries, as the most important and powerful instruments for bringing about extensive economic growth. The development of a nation, however, neither starts nor ends with economic development alone. It should encompass much more than that if it is both to bear and to enjoy the fruits of economic development. This paper is not intended to dwell on the pros and cons of these conflicting views. Instead, we will discuss the policies and strategies of science and technology development in the industrialization of a developing country from a point of view of industrial growth as the prime source of impetus for national development.Some of the leading industrial sectors in a developing country are geared primarily to breaking the inertia of underdevelopment of many kinds. They introduce technology quite advanced relative to their absorptive capacity, but feeder industries supporting the leader sectors do not necessary require such advanced technology. We desire, therefore, to look at the issue from both the national and the local points of view so that what is thought to be the ideal—“production by the masses” not “mass production,” involving both leader and feeder industries—can be realized.One pressing problem in developing these lead-sector industries was whether or not they could be operated at full or at least near-full capacity. It was found that the allowance was extremely small because of the fact the cost of the capital for these industries, which mostly originated abroad, was very much higher than for the advanced countries. In addition, the adaptation of a lead-sector approach with greater economy of scale necessitated the introduction to industry of new, more, and higher level technologies of an order of magnitude never before experienced. It is an irreversible decision so far as science and technology development are concerned and was an issue of survival or extinction in an ever-stiffening international competition. For these reasons, the Korean government opted to begin with a formulation of intensive policies and strategies for the development of science and technology with many innovative supporting measures.The major elements of the policy guidelines for the 1970s were:

• 1.Provision of a secure foundation for scientific and technologic growth;
• 2.Strategic development of industrial technology, and
• 3.Creation of a favorable climate for science and technology.

This was followed by concrete planning to execute these policies. In this plan, Korea adopted what might be called a three-pronged approach, emphasizing capability build-up—particularly manpower development at various levels—accelerated introduction of foreign technologies, and stimulation of domestic R&D activities. To this end, the implementation plan was formulated with consideration for the institutional and legal factors, among others.For the institutional framework, the Korean approach was somewhat daring. It included the establishment of 1) the Ministry of Science and Technology (MOST) in 1967 as the central policy-making, planning, coordinating, and promotional body in the government; 2) the Korea Institute of Science and Technology, by a special law (KIST Assistant Act) in 1966, as an autonomous, multidisciplinary industrial-research institute chartered as a contract research organization; 3) the Korea Technology Development Corporation, as a financial intermediary to ensure a smooth flow of money for R&D purposes; 4) the Korea Advanced Institute of Science (KAIS) in 1971, in addition to the many existing universities and colleges, as a mission-oriented postgraduate school in selected applied sciences and engineering, to educate high-caliber scientists and engineers in number and in quality sufficient enough to meet the emerging needs of Korean industry; and 5) a huge number of vocational-training institutes along with technical high schools to meet the rapidly rising, almost explosive demand for skilled workers and technicians.The emergence of the Ministry of Science and Technology spearheaded the enactment of several very important laws for the development of science and technology. They include the Science and Technology Advancement Law, the Law for the Promotion of Industrial Technology Development, and the National Technical Qualification Law.