OECD Economics Department Working Papers

ISSN :
1815-1973 (online)
DOI :
10.1787/18151973
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Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

 

Fostering a Creative Economy to Drive Korean Growth You or your institution have access to this content

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Author(s):
Randall S. Jones1, Myungkyoo Kim1
Author Affiliations
  • 1: OECD, France

Publication Date
26 Aug 2014
Bibliographic information
No.:
1152
Pages
39
DOI
10.1787/5jz0wh8xkrf6-en

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A creative economy requires innovation-friendly conditions. Korea’s innovation system should be improved by upgrading universities and expanding their role in business R&D, while increasing international collaboration in R&D from its current low level. The returns from Korea’s large investment in innovation should be enhanced by improving framework conditions – easing product market regulations, promoting international competition and enhancing labour market flexibility – to encourage the adoption of new technology. Venture businesses and start-ups should play a key role in commercialising innovation. To make venture investment a growth driver, it is important to expand the role of business angels, activate the merger-and-acquisition market and foster entrepreneurship. A creative economy also depends on making SMEs, which account for 87% of employment, more dynamic. SME policies should be streamlined and improved to promote market-based financing and reduce the negative effects of government funding programmes, which discourage the expansion of SMEs. The growth of small firms also depends on resolving labour market mismatches and taking full advantage of the opportunities afforded by the Internet. This Working Paper relates to the 2014 OECD Economic Survey of Korea (www.oecd.org/eco/economic-survey-korea.htm).
Keywords:
mergers and acquisitions, start-ups, creative economy, crowd-funding, chaebols, business angels, R&D, SMEs, product market regulation, entrepreneurship, credit guarantees, innovation system, knowledge-based capital, venture capital investment
JEL Classification:
  • L25: Industrial Organization / Firm Objectives, Organization, and Behavior / Firm Performance: Size, Diversification, and Scope
  • L26: Industrial Organization / Firm Objectives, Organization, and Behavior / Entrepreneurship
  • M13: Business Administration and Business Economics; Marketing; Accounting; Personnel Economics / Business Administration / New Firms; Startups
  • O31: Economic Development, Innovation, Technological Change, and Growth / Innovation; Research and Development; Technological Change; Intellectual Property Rights / Innovation and Invention: Processes and Incentives