"R&D System Not Felt on the Ground"...SMEs Call for Policy Improvements

Calls to Alleviate R&D Burden on Companies Amid High Exchange Rates and Economic Downturn

Small and medium-sized enterprises (SMEs) have called on the government to improve the effectiveness of research and development (R&D) policies, stating that the current R&D system is not felt at the field level. They stressed the urgent need for a support system that can alleviate the R&D burden on companies, especially as high exchange rates and the prolonged global economic downturn persist.

The Science and Technology Innovation Bureau of the Ministry of Science and ICT held the 2nd "SME R&D Communication Meeting for the Future" on January 22 at the Leaders Room of the Korea Federation of SMEs in Yeouido, Seoul, to listen to the challenges faced by SMEs and their demands for institutional improvements. The meeting was attended by representatives from the Korea Federation of SMEs, the Innobiz Association, the Korea Startup Forum, and various SME-related cooperatives and organizations.

Park Ingyu, Director General of the Science and Technology Innovation Bureau at the Ministry of Science and ICT, is speaking at an event. Photo by Yonhap News Agency

On this day, the SME sector identified several core issues: insufficient impact of existing R&D policies at the field level, institutional gaps that fail to keep pace with changes in technology and industrial environments, and increased R&D investment burdens due to worsening external economic conditions. In particular, it was repeatedly pointed out that although support programs have increased, complex requirements and procedures make them difficult to utilize in actual research settings.

Participants emphasized the need for more flexible R&D support tailored to the characteristics and growth stages of companies, as well as a stable support structure that enables SMEs to continuously take on challenges in strategic technology fields. There were also calls for large and small companies to move beyond superficial collaboration and achieve genuine joint research and tangible outcomes.

Additionally, as business conditions have worsened due to high exchange rates and the global economic downturn, opinions were raised that the R&D system should shift away from short-term performance evaluations and instead support the mid- to long-term technological accumulation of SMEs. The SME sector requested that the Science and Technology Innovation Bureau, as the organization overseeing national R&D policy, lead inter-ministerial cooperation to create policies that "bring about real change that companies can actually feel."

Park Ingyu, Director General of the Science and Technology Innovation Bureau, stated, "As this year's government R&D budget reaches a record high of 35.3 trillion won, including 2.2 trillion won allocated for SME R&D, we will use this as a foundation to build an environment where SMEs can focus on research and development in a stable manner."