'R&D key to building world class companies'

A continuous emphasis on research and development and an innovative use of technology is behind the several 'world class' companies that South Korea has produced, according to a panel of experts.

South Korean companies like LG, Samsung and Hyundai were not only exceptionally strong in manufacturing, but also in policy-making too, said experts.

Although India had maintained diplomatic relations with South Korea for over 30 years, the bond had become stronger in recent times due to an increase in trade between the two countries, with Indo-Korean trade crossing $2.6 billion.

Outlining the various facets of the Korean experience, Youngrak Choi, President, STEPI of Korea, said 3 per cent of the gross domestic product (GDP) of the country was utilised for research and development and the number of corporate research institutes in Korea had gone up from only 48 in 1978 to about 10,000 in 2003.

"Leading export sectors are no longer textiles, iron and steel and footwear like in the eighties. These have been fast replaced by semi-conductors, computers and automobiles. Innovation and knowledge information are the sources of economic growth in the 21st century," Choi said.

However, Korea needed to adopt more creative technological ideas and focus on distinctive technological capabilities and unique technology development systems to usher in the high growth rates of the past once again, Choi said.

India, on the other hand, needed to focus on developing a sound manufacturing system, a strong mass production base, in-house manufacturing factories, efficient production management systems, successful technological-core formulation processes and a high risk-taking ability in terms of technology, the experts concluded.

Speaking on the occasion, Abid Hussain, former ambassador to the US, pointed out that the shelf life of technology was very short and it was not the monopoly of a single country.

The round table conference, organised by the Punjab, Haryana and Delhi Chambers of Commerce and Industry (PHDCCI) and the EMPI University Business School, revolved around the theme, 'Building world class companies: the Korean experience'.

Other speakers included Kwon Soon Tai, ambassador to the Republic of Korea; Gurnam Saran, president of the EMPI University Business School; PK Jain, president of the PHDCCI; and Deepak Pahwa, chairman of the Indo-US Foundation for Industrial Technology Collaboration.

Korean policy

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South Korean companies like LG, Samsung and Hyundai are not only strong in manufacturing but in policy-making too

3 per cent of the gross domestic product (GDP) of South Korea is utilised for research and development

The number of corporate research institutes in South Korea has gone up from only 48 in 1978 to about 10,000 in 2003