[Exclusive] 'Danbi,' a Collaboration Platform for 20,000 SMEs Certified with Innovative Technology, to Launch

InnoBiz Association Development
Government Policy Makers Also Participate
Collaborative Platform
'Danbi' to Operate from Second Half of Year

Connecting and Cooperating Across
Raw Materials, Procurement, Production, and Sales
Easily Designing Customized Policies

[Asia Economy Reporter Donghyun Choi] A platform enabling collaboration among over 20,000 small and medium-sized enterprises (SMEs) certified for innovative technologies and government policy makers is being created. This is the first time such a corporate platform is being established in South Korea.

According to the SME sector on the 25th, the Korea Innovation Enterprise Association (Inno-Biz Association) plans to develop and operate a value chain collaboration platform called ‘Danbi’ (tentative name) starting in the second half of this year. Through this platform, it will be possible to move beyond simply evaluating and managing technology-leading companies to connecting the value chains of companies?including raw material procurement, production, packaging, and sales?enabling the formation of practical cooperative systems. Not only companies but also government officials will participate to facilitate the easy design of customized policies. For example, when producing a single coffee bean, companies making cups and straws can be grouped into one cluster to encourage joint branding, which is essential for becoming a strong small enterprise with global competitiveness.

The Inno-Biz Association recently formed the ‘Danbi Platform Task Force (TF)’ and began development aiming for a release within the year. The platform itself is being developed through external technical services, with the TF and developers holding meetings at least once a week to collaborate. After several months of work, the association completed the basic design plan for the platform and reported it to Lim Byung-hoon, president of the Inno-Biz Association (CEO of Telstar Hommel), on the 19th.

Marking its 20th anniversary this year, the Inno-Biz Association is the institution responsible for managing and renewing certifications under the ‘Technology Innovation SME Certification System’ (Inno-Biz) implemented by the Ministry of SMEs and Startups. ‘Inno-Biz’ is a compound word of ‘Innovation’ and ‘Business,’ referring to technology-innovative SMEs that have secured competitiveness based on technological superiority. Companies selected as Inno-Biz receive various benefits in management activities such as financial support including government loans and tax incentives, as well as support for technology development, exports, and research personnel. The number of Inno-Biz companies, which was 1,090 at the system’s inception in 2001, recently surpassed 20,000.

Last month, the Ministry of SMEs and Startups added a clause in the Inno-Biz system’s operational regulations to outsource the Inno-Biz certification evaluation to the private sector. Until now, the Korea Technology Finance Corporation conducted on-site inspections and technical evaluations for certification renewals, but going forward, the Inno-Biz Association will hold this authority.

The background for building Danbi stems not only from the association’s expanded authority and the need to systematically manage the growing number of Inno-Biz companies but also from the desire to actively connect their businesses to create synergy. President Lim, who has worked in the industrial field for 35 years, deeply felt the necessity of such a ‘value chain cluster.’ Instead of classifying companies uniformly by industry group, it is essential to tightly connect the value chains occurring throughout the entire process from initial production to sales of products.

From the policy makers’ perspective, it was difficult to create practical support programs tailored to each company using the existing classification systems such as manufacturing, construction, and distribution. Once Danbi is established, it is expected that programs supporting verified partners within the value chain related to specific products or services as a package will be developed.

An official from the Inno-Biz Association said, "Initially, the service will focus on about 6,600 member companies among the 20,000 Inno-Biz companies and government ministry officials, with plans to eventually expand to all. We expect this to generate various industrial synergies."