Plans for Improving the International Competitive Power of Small Industries According to Changes in the Economic Environment

Abstract

Korean small industries are currently facing a good deal of changes in the economic environment; (a) the industrial environment became more competitive than as ever in that small industries have to compete with foreign industries even for the domestic market; (b) developed countries are turning reluctant to transfer their new technology; (c) rapid economic growth of other developing countries are threatening us; (d) customer needs are becoming more and more individualized and diversified; (e) the regulation of government concerning the contamination of natural environment will be more strict. Because the only way possible to overcome this situation is considered to be technological innovation, many ways in which to enhance the level of our technology are provided and discussed in detail. Due to to consideration of efficiency, introduction of foreign technology is preferred by small industries rather than developing new technology on their own. Many different ways of introducing foreign technology are addressed including licensing, direct investment, co-investment, and venture capital. It is emphasized that small industries should be able to put together its own know-hows and introduced foreign technology in an synergistic manner by which to maximize their international competitive power.