These proposals are encouraging and demonstrate recognition of the need for a holistic approach to enhancing Korea’s innovation ecosystem by remov-
ing regulatory, institutional, and cultural barriers. Many proposed measures have been discussed or attempted before by previous Korean governments. However, the focus and urgency with which the Park administration is pursuing this agenda could help to build momentum.
Moving forward, it is important that the Korean government stay focused on the fundamental goal of
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Analysis from the East-West Center
creating the most conducive environment possible for innovation, and recognize its own limitations.17 Its focus on improving financing for startups and SMEs is positive, but requires caution so as not to create new dependencies on public funding. Implementing regulatory, tax, and other reforms that reduce risks for entrepreneurs and encourage businesses small and large to invest in R&D and create new jobs will be beneficial. Given the dynamic and disruptive nature of innovation, it is important that the Park govern- ment avoid new regulations and directives that could inadvertently create barriers to the potential unex- pected surprises that could present Korea’s next great success story.18
Park’s ability to build strong public consensus around the value of innovation and the creative economy agenda is essential for the long-term feasibility of these initiatives. This is not only to encourage more people to consider entrepreneurial opportunities, but also to frame and build public support for more comprehensive and politically sensitive education, labor, social welfare, and other structural reforms essential to enhancing Korea’s innovation ecosystem and addressing sources of economic and social disparities. The success of many of these policies requires a long-term commitment, well beyond Park’s five-year term as president, but important foundations can be constructed now. Also important for the success of the creative economy agenda will be expanding Korea’s trade linkages and openness to foreign direct investment (FDI), which facilitate innovation through introducing new tech- nologies, processes, business models, and knowledge spillovers across international borders, and opens potential opportunities to engage with US partners in advancing creative economy goals.