Statistics of the National Research Council of Science & Technology
Daejeon Daedeok Research and Development Special Zone, densely populated with government-funded research institutes
[Asia Economy Reporter Kim Bong-su] Government-funded research institutes in the field of science and technology are spending approximately 5 trillion KRW annually and earning about 100 billion KRW (around 2%) in royalty income. In particular, the six industrialization-type research institutes showed a royalty income ratio of around 5% relative to their budget, which is higher compared to similar institutions in technologically advanced countries such as Germany and Japan. This suggests that technology transfer and commercialization activities at public research institutions have become relatively more active.
According to the National Science and Technology Council (NST) on the 16th, the total budget spent by 25 NST-affiliated research institutes in 2019 was 4.0613 trillion KRW, and the royalty income earned that year was 109 billion KRW, recording a 2.4% return rate. In 2018, the institutes spent 4.7655 trillion KRW and earned 96.8 billion KRW (2.0%), in 2017 they spent 4.8884 trillion KRW and earned 96 billion KRW (2.0%), and in 2016 they spent 4.8952 trillion KRW and earned 96.8 billion KRW (2.0%) in royalties, showing similar performance.
Specifically, when only the six industrialization-type research institutes with active technology transfer are counted separately, the royalty income ratio relative to the budget rose to 4-5%. In 2019, the total budget of these six institutes was 1.5413 trillion KRW, and they earned 77.1 billion KRW in royalties, showing a 5.0% return rate. This has been gradually increasing each year, with 1.5889 trillion KRW spent and 65.8 billion KRW (4.1%) earned in 2017, and 1.5266 trillion KRW spent and 66.4 billion KRW (4.3%) earned in 2018.
This is higher than research institutions in Germany or Japan. The Fraunhofer Society, a group of industrialization-type research institutes in Germany, recorded a royalty income ratio of 3.9% in 2019 (3.6 trillion KRW invested and 139.1 billion KRW earned). In Japan, the National Institute of Advanced Industrial Science and Technology invested 1.0644 trillion KRW in the same year but earned only 7.9 billion KRW in royalties, showing a low return rate of 0.7%.
Meanwhile, NST announced that over the past five years, its 25 affiliated research institutes filed 39,263 domestic and international patents, of which 26,513 were registered. This accounts for 25% of the total patent registrations in national research and development projects (government R&D), with overseas registered patents making up 70% of the total. As of the end of last year, the institutes held 44,922 patents, of which 16,410 (36.5%) were utilized for technology implementation, transfer, or technology investment to companies and others. The total royalty income of the research institutes over the past five years was 520 billion KRW.
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