The industrial technology sector has identified the expansion of tax support and a shift towards demand-driven policies as top priorities for R&D policy in the next government. Possible solutions include forming a private sector-led R&D system improvement council and establishing an ‘(tentative name) Innovation Talent Headquarters’ at the inter-ministerial level.
This stems from a survey conducted by the Korea Industrial Technology Association from March 28 to April 4 on 1,673 companies with affiliated research institutes. The survey outlines demands for R&D policy improvements ahead of the new government’s inauguration in June.
Respondent companies highlighted the need for expanded tax support (46.1%) and support for cultivating and hiring skilled personnel (46%) as the most essential government R&D policies currently. As R&D costs rise, tax support for technological innovation companies is increasingly important. Research personnel are also a vital element for the survival of companies focused on R&D.
Following this, support for technology transfer and commercialization (37.5%), support for building and utilizing R&D infrastructure (26.8%), and increased investment in strategic technologies (19%) were also mentioned.
The respondent companies ranked R&D tax support and system improvement (47.3%) as the top priorities for the government to pursue. A transition to demand-driven R&D policies (44.8%) and support for cultivating and hiring excellent research personnel (41.1%) were also among the key policy tasks desired by companies.
Additionally, support for building and utilizing R&D infrastructure (28%), establishing an industrial-academic-research cooperation ecosystem and infrastructure support (17.6%), and focused support for R&D in strategic technology areas (15.2%) were mentioned.
Based on the survey, the Korea Industrial Technology Association announced the ‘2025 Industrial Technology Innovation Policy Proposal,’ incorporating advice from policy experts. It suggested introducing a flexible matching fund to reduce the burden on companies, forming a private sector-led R&D system improvement council, and establishing an Innovation Talent Headquarters and a ‘K-Brain Return Headquarters’ for promoting and attracting top talent.
The association emphasized, “Without corporate R&D, there is no future,” and explained that the policy proposal was prepared to create an environment conducive to continued corporate R&D amid the intensification of global technological hegemony competition and expanding internal and external uncertainty.