Coping with Globalisation
An analysis of innovation capability in the Brazilian and
Korean Telecommunications Equipment Industry
Dr Sunil Mani
United Nations University-Institute for New Technologies
Keizer Karelplein 19
6211 TC Maastricht
The Netherlands
E-mail: Mani@intech.unu.edu
Outline
l
Some conceptual issues
l
The World Telecommunications Equipment Industry
l
Brazil and Korea: cases for in depth examination
l
Deregulation and liberalisation of the telecom distribution industry in Brazil and Korea
l
The sectoral system of innovation
l
Measuring changes in innovation capability
l
Instruments of state support
l
Summing up the present status of innovation capability
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
2
Conceptual Issues
l
:
Globalisation deregulation and liberalisation of telecom services (both
fixed and mobile) and the opening up of telecom equipment
manufacturing to foreign direct investments
.
l
Innovation capability: Ability to conceptualise, design, manufacture
and sell state-of-the-art telecom equipments coupled with the ability to
keep pace with changes in the world technology frontier
l
Coping with globalisation: The efforts mounted by the innovation
system to respond positively and benefit from the challenges paused by
deregulation, privatisation and economic liberalisation.
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
3
The World Telecommunications Equipment Industry
l
The industry is becoming more oligopolistic
l
The industry is becoming more innovative
l
Hence more powerful
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
4
The degree of concentration in the World
Telecommunications Equipment Industry, 1985 and 1998
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
5
R&D Intensity of Leading World Telecommunications
Manufacturers
25
20
15
R&D Intensity (%)
10
5
0
Nippon
Telegraph
and
Cisco
Systems
(U.S.)
Ericsson
(Sweden)
Lucent
Technologies
(U.S.)
Nortel
Networks
(Canada)
12.5
11.5
13.9
7
2,002
21.4
20.1
16.5
18.7
2003
18.57
20.12
18.75
20.45
1997
Matsushita
Communicati
on (Japan)
Nokia
(Finland)
Alcatel
(France)
3.3
9.6
11.3
19.2
3.63
10.17
13.45
19.23
8.2
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
6
Patenting performance of Leading World
Telecommunications Manufacturers, 1995-2000
Technological
Strength1
Current
impact
index3
1995-99
2000
1995-99
2000
1995-99
2000
Technologi
cal cycle
time5
2000
Science
linkage4
1995-99
Number of
patents2
2000
Name of company
(country)
2485
1701
1445
881
1.72
1.93
1.31
1.78
5.4
2035
2148
1241
1193
1.64
1.80
0.63
0.76
9.4
3. Ericsson Telephone
(Sweden)
1651
714
775
320
2.13
2.23
0.99
1.32
5.2
5. CISCO Systems (U.S)
911
123
133
25
6.85
4.94
1.15
0.90
5.8
7. Alcatel (France)
478
319
423
285
1.13
1.12
0.79
1.06
6.4
8. Qualcomm (U.S)
451
350
111
63
4.06
5.56
0.71
1.47
6.7
9. Cabletron systems
(USA)
253
116
41
17
6.18
6.98
2.00
2.39
5.2
10. Ciena (U.S)
109
30
26
6
4.18
4.61
1.73
1.97
5.0
11. JDS Uniphase(U.S)
100
57
52
36
1.93
1.61
2.21
1.31
7.1
12. Qwest
Communications
International (U.S)
97
105
29
33
3.33
3.16
1.13
4.1
1. Lucent Technologies
(U.S)
2. Motorolla (U.S)
0.34
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
7
The Brazil and Korean Cases
Brazil
Korea
172.39
47.34
7360
15090
Number of fixed telephone lines (in
Million, 2002)
39.1
28.64
Density of fixed telephone per 100
people (2002)
28.5
51.7
Number of mobile telephone lines (in
million, 2002)
Density of telephones (2003, per 100
people)
Ratio of mobile to fixed lines (2003)
38.8
43.87
Population (Millions, 2001)
Per capita GDP
(PPP Current International $, 2001)
Size of Telecommunications Services (2002,
Millions of US $)
Size of the telecommunications market (2002,
Millions of US $, Domestic sales in case of Brazil
and domestic Production in case of Korea)
21.95
1.53
0.99
20990
22663
4395
26778
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
8
Structure of the Fixed Telecommunications sector in
Brazil: 2001
Service
provider
Local
Company/
(Main Shareholders)
TELEMAR
(BNDESPar, Pension
Funds, Andrade
Gutierres, Opportunity)
Local
VESPER
(Mirror
(Qualcomm,
Concessionary) VeloCom,Bell Canadá)
Local
CTBC Telecom
(Mirror image
Concessionary)
Region 1
Amazonas (AM,
Roraima(RR),
Maranhão(MA),
Amapá(AP), Piauí (PI),
Ceará (CE), Rio Grande
do Norte (RN), Paraíba
(PB), Pernambuco (PE),
Alagoas (AL), Sergipe
(SE), Bahia (BA), Minas
Gerais (MG), Espirito
Santo (ES) and Rio de
Janeiro (RJ)
Local
BRASIL TELECOM
Region 2
Acre (AC), Rondônia
Incumbent
(RO), Mato Grosso (MT),
(Solpart, Pension
Tocantins (TO), Distrito
Funds, TIM, Timepart)
Federal (DF), Goiás (GO,
Local
GVT
Mato Grosso do Sul (MS),
(Mirror
(Magnum Group IDB
Paraná (PA), Santa
Concessionary) Group, Merrill Lynch
Catarina (SC) and Rio
Group)
Grande do Sul (RS)
Local
Other
(Mirror image
Concessionary)
Region 3
Sao Paulo (SP)
Region 4
Long Distance – National
Coverage
Local
TELEFONICA
(Telefonica de
Espanha)
Local
VESPER
(Mirror
(Qualcomm, VeloCom,
Concessionary)
Bell Canada)
Local
Other
LDI
EMBRATEL
(WorldCom)
LDI
INTELIG
((Mirror
(NGC, France
Concessionary)
Telecom, Sprint)
Source of equipments used in the
network
Ericsson, Siemens, Lucent, NEC and
Tropico
Lucent
N/A
Ericsson, Siemens, Lucent, NEC and
Tropico
Nortel
N/A
Ericsson, Siemens NEC, and Trópico
Nortel
Nortel / Lucent
Ericsson, NEC, Lucent
Alcatel, Cisco, HP and Nortel
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
9
Structure of the Telecommunications distribution sector
in Korea: September 2002
Service
Service
coverage
No of providers
Service provider
Local telephone
Value-added service
Long-distance telephone
Value-added service
International telephone
Value-added service
Nationwide
Nationwide
Nationwide
Nationwide
Nationwide
Nationwide
2
2
3
1
3
1
KT, Hanaro Telecom
Dacom, Onse Telecom
KT, Dacom, Onse Telecom
Hanaro Telecom
KT, Dacom, Onse Telecom
Hanaro Telecom
Telecommunication circuit lease
KT, Dacom, G&G Networks,
Dreamline, Hanaro Telecom,
Thrunet, Space Broadband
PowerComm
Domestic
International
7
Domestic
1
Long distance
international
3
SK Telecom, Hansol iGlobe, Onse
Telecom
4
Dacom Crossing, Seoul International
Telephone, Korea Level-3
Communications, Samsung Networks
International
Mobile telephone
Servicesprovidedover allocatedfrequencies
Personal
communication
service
Global Mobile PCS
by Satellite
(GMPCS)
Trunked radio
system (TRS)
Nationwide
1
SK Telecom (18.44 million)
Nationwide
2
LG Telecom (11.29 million), KT
Freetel (5.27 million)
Nationwide
2
Regional
5
Dacom, Korea ORBComm
Seoul TRS (Metropolital Area), KB
Telecom (Busan, Gyeongnam), Dagu
TRS (Daegu, Gyeongbuk), Power
Tel TRS (Gangwon), Jeju TRS (Jeju)
Wireless Data
Communication
Nationwide
3
Air Media, In Tech Telecom, Hanse
Telecom
Radio Paging
Nationwide
1
InTech Telecom
Regional Areas
4
Seoul Mobile Communications
(Metropolitan Area), Eysel's Vision
(Busan, Gyeongnam), Selim iTEch
(Daegu, Gyeongbuk)
Very high-sped
wireless internet
IMT-2000
Natiowide
Nationwide
1
Dacom
3
KT iComm, SKIMT, LGTelecom
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
10
Rate of Digitalisation of the Telecom Network: Brazil Vs
Korea
Brazil
Rate of
digitilisation
of the local
network
Korea
Rate of
digitilisation of
mobile network
1994
Rate of
digitilisation
of the local
network
61.8
Rate of
digitilisation
of mobile
network
35.5
1995
45.8
56.1
63.4
1996
1997
1998
65.2
67.6
72.3
67.4
66.6
68.8
1999
84.6
71.3
2000
2001
92.5
97.2
75.9
2002
98.28
97.98
79.7
82
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
100
100
100
11
Structural Changes in the Brazilian and Korean
Telecommunications Industry- 1
30000
25000
Millions of US $
20000
15000
10000
5000
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
Equipment (Korea)
2371.72 2755.15 3243.61 3280.63 3808.36 6000.75 11093.5 14462.2 10160.7 16819.1 19930 21878.9 26778.4
Services (Korea)
5119.78 6089.4 6759.75 7329.2 8245.71 10412.4 14073.8 13577.8 9945.7 13554.9 18167.3 20645.3 22662.6
Equipments (Brazil)
8695.8 6504.53 8729.66
Services (Brazil)
4457.9
19611 24695.4
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
4395
20889.5
12
Structural Changes in the Brazilian and Korean
Telecommunications Industry- 2
2.00
1.80
1.60
1.40
1.20
Ratio of Equipment to
1.00
Services
0.80
0.60
0.40
0.20
0.00
Ratio Equipment to Services (Korea)
Ratio of Equipment to Services (Brazil)
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
0.46
0.45
0.48
0.45
0.46
0.58
0.79
1.07
1.02
1.24
1.10
1.06
1.18
1.95
0.33
0.35
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
0.21
13
Declining importance of public switching in Brazil and
Korea
(Based on domestic output in value terms)
0.900
0.800
0.700
0.600
0.500
Ratio
0.400
0.300
0.200
0.100
0.000
Ratio of public switching to total(Korea)
Ratio of public switching to total(Brazil)
Ratio of public switching to wireless(Korea)
Ratio of public switching to wireless (Brazil)
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
0.233 0.212 0.179 0.154 0.128 0.074 0.031 0.046 0.074 0.034 0.029 0.025 0.009
0.220 0.160 0.180
0.060
0.898 0.894 0.655 0.435 0.314 0.152 0.068 0.076 0.114 0.047 0.043 0.033 0.011
0.810 0.640 0.900
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
0.280
14
Index of Innovation Capability in Switching
Equipments (Brazil), 1989-2002
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
15
Share of Domestically Developed Switching Technology
in the Total Brazilian Telecommunications Network,
(Cumulative 1987-1997 in per cent)
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
16
The Present (c2003) Innovation System of the Brazilian
Telecommunications Industry
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
17
CPqD’s (Brazil) Strategy: Before and After Privatisation
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
18
New Company Formation by CPqD (Brazil)
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
19
Changes in the professional workforce of CPqD
(Number of employees)
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
20
Financial performance of CPqD, 1998-2002
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
21
The Present (c2004) Innovation System of the Korean
Telecommunications Industry
Policy making with respect to telecommunications
Ministry of Information and Communication(9MIC)
National Computerization Agency
Korea IT Industry Promotion Agency
International Cooperation Agency for Korea IT
Korea Communications Commission (Regulator)
Ministry of Science and Technology (MOST)
Standardisation and
Certification Agencies
Innovation Funding Agencies
MIC
MOST
Telecommunications
Technology Association
R&D system in Telecom
technology
Electronics and Telecommunications
Research Institute (ETRI)
•
•
•
Industrial Technology
Development Project
New Advanced
Technology
Designation /Support
Project
Advanced Technology
Development Project
Venture Capital
Telecommunications Equipment
Manufacturers
Telecommunications
service providers
(Samsung, LG TeleCom, Mercury
Corp, Hanwa Corpration
Telecommunications Division plus a
large number of SMEs manufacturing
especially handsets )
Fixed line providers (KT)
Cellular providers
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
22
Index of Innovation Capability in Switching Equipments
(Korea), 1990-2002
120.000
100.000
80.000
Indices if innovation
capability
60.000
40.000
20.000
0.000
Index of innovation capability
Percentage share domestic
switching equipments in the total
stock
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
99.37 96.46 98.62 106.3 103.1 102.3 102.7 100.7 110.0 97.12 94.41 97.84 107.7
40.9
42.6 44.8
47
51
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
23
Increasing import substitution due to the production of
TDX technology
7.00
1800
1600
6.00
1400
Thousands of lines
4.00
1000
800
3.00
600
Ratio of TDX to Imported
5.00
1200
2.00
400
1.00
200
0
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
24
189
206
341
492
1333
1666
1355
1472
768
694
831
Imported Equipment
1370
1215
1062
986
1354
1448
1014
659
237
241
209
274
Ratio of TDX to imported
0.02
0.16
0.19
0.35
0.36
0.92
1.64
2.06
6.21
3.19
3.32
3.03
TDX Exchange Equipment
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
0.00
24
Source of income to Korean ETRI, 1998-2002
90.000
6000
80.000
5000
60.000
4000
50.000
3000
40.000
Percentage share
Hundred million Korean Won
70.000
30.000
2000
20.000
1000
10.000
0
1998
1999
2001
2002
2003
Income
2875
2833
3210
4825
3783
Fund by government
1944
2181
2218
2863
3044
67.617
76.986
69.097
59.337
80.465
Percentage share of R&D Fund
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
0.000
25
Indicator’s (Physical) of ETRI’s (Korea) Performance,
1985-2002
Patents granted
Number of
research staff
International
National
1985
-
14
1986
2
9
1987
-
48
1988
14
86
1989
32
209
1990
44
352
1991
56
388
1992
Royalty
received
(millions
of
Korean
Won)
New companies spun off
from ETRI
During
Cumulative
the year
21
349
3
36
24
1993
47
252
1994
615
945
32
39
8
7
7
1995
1996
126
267
1032
1117
1997
334
1367
224
1280 (82.74)
46
60
72
14
12
108
38
1998
1999
1360(84.4)
313
144
752
785
152
110
136
26
2000
1645(86.3)
442
643
147
201
65
2001
1722 (87.1)
200
843
180
221
20
2002
1633( 87.1)
150
1390
205
233
12
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
26
Major R&D achievements of ETRI with respect to
Telecommunication Technologies
Year
1986
1989
1990
1992
1993
1994
1995
1996
1996
1998
1999
2000
ETRI’s R&D Achievement
Beginning of the TDX-1 system
Operated the first ISDN MODEL SYSTEM IN Korea
Development of the TDX-1ISDN model switching system
Development of the 155 Mbps grade synchronous optical transmission system
Development of the 2.5 Gbps grade optical transmission system
Development of digital mobile communication system
Development of ATM switching system for very high speed bed network
Development of world’s first ATM multimedia switching Chip (MCS)
Commercialized the CDMA digital mobile communication system
Development of ATM switching system
Development of RF CMOS IC for cellular telephones
Development of ATM switching system
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
27
ETRI: Two major achievements
l
TDX family of digital switching systems
l
First to commercialise CDMA mobile communication
technologies
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
28
ETRI (Korea): The TDX Family of Digital Switching
Systems
Major
Series
TDX-1(A)
TDX-1(B)
TDX- 10
Use of system
Capacity
(lines)
-PSTN services for rural areas
10,000
-PSTN and ISDN services for small cities
20,000
-PSTN, ISDN and Packet services for metropolitan 100,000
areas.
-Can easily adopted for IN and PLMN
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
29
ETRI has also enabled Korea to be the leader in mobile
communications
l
Commercialised CDMA technologies in 1996
l
Introduced CDMA-PCS service in 1996
l
Launched cdma2000 1x service in October 2000
l
Provided cdma2000 1x EV-DO service in May 2002
l
The exports of CDMA systems and terminals by Korean companies have been steadily
growing since the successful 1996 commercialisation. During the year 2002, exports
have exceeded 4.2 billion dollars. In particular exports of cdma2000 1x products have
been increasing rapidly.
l
The development of GSM and TDMA technologies is a valuable by product created by
the successful commercialisation: exports of GSM terminals reached 7.3 billion dollars
in 2002 while TDMA terminals exceeded 15 million dollars.
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
30
Main difference in the sectoral system of innovation
between Brazil and Korea
l
Active involvement in the research and its commercialisation by
would be manufacturers in the case of Korea while the Brazilian
manufacturers had very little participation up to 1998.
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
31
Instruments of State Support: Brazil
1. Fiscal instruments to promote local generation of technology
l
Provision of research grants: the establishment of FUNTTEL
l
Provision of tax incentives
l
Provision of deferred credit facilities
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
32
Instruments of State Support: Brazil
2. Legal instruments for domestic technology procurement
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
33
Instruments of state support: Korea
1. Fiscal incentives for technology creation
2500
2000
1500
100 Million Korean Won
1000
500
0
1996
1997
1998
1999
2000
ITDP
213.1
261.5
295.9
284
315
NATDSP
40.7
40.9
50.2
94
76
ATDP
1330.1
1692.7
1462.4
1607
1874.3
Total
1583.9
1995.1
1808.5
1985
2265.3
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
34
Instruments of state support: Korea
2. Public technology procurement
l
It is clear that some form of technology procurement is still practised
given the virtually monopolistic position of KT.
l
This is evident from the increase in market share of domestically
developed public switches.
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
35
Comparison of Brazilian and Korean R&D initiatives in
Telecommunications Technology
B r a z il
1 . Y e a r o f e s ta b lis h m e n t
•
•
I
2 . M o d e o f o r g a n iz a tio n
•
3 . A n nual budget
( A v e r a g e a m o u n t in U S $ d u r in g 1 9 9 2 - 2 0 0 2 )
•
4 . M o d e o f fin a n c in g
•
•
5. N um ber of R & D
2002)
s c i e n t i s t s a n d e n g in e e r s ( a s o f
6 . M a in a r e a s o f t e c h n o l o g i c a l s tr e n g th
7.
C a p a b ility
te ch n o lo g y
8 . P a te n tin g
in c e p tio n )
in
record
m o b ile
an d
te le c o m m u n ic a tio n s
e x p o rts
(c u m u lativ e
s in c e
•
C PqD
K orea
ETRI
1976
1976
T w o p h ases
P h a s e 1 : 1 9 7 6 to J u n e 3 0 1 9 9 8 : S ta n d
a l o n e p u b l i c la b o r a to r y . T e c h n o l o g y
d e v e l o p e d b y t h e la b i s tr a n s f e r r e d t o
B r a z ilia n p riv a te s e c to r c o m p a n ie s a t
n il ra tes o f ro ya lty
P h a se 2 : Ju ly 1 1 9 9 8 o n w ar d s :
P riv a te F o u n d a tion . It c o n sis ts o f th e
c e n tr a l l a b o r a t o r y , t w o
m a n u f a c t u r in g c o m p a n i e s a n d t w o
s er v ic e o r ie n te d co m p a n ies
U S $ 8 1 m i l li o n ( R a t i o o f C P q D 's
R & D b u d g e t t o th e R & D e x p e n d i t u re
o f E r i c s s o n in 2 0 0 2 - 0 . 0 1 7 9 )
P h a se 1 : 1 0 0 p er ce n t r ese ar ch g ran ts
fr o m its p a r e n t te le c o m se rv ic e
p r o v id er , T ele b r a s
P h a se 2 : 7 0 p er ce n t s elf g e n era tion
th r o u g h s a le o f te c h n o lo g y a n d
s er v ic es ; 3 0 p er c en t r es ea rch g ra n ts
f r o m th e g o v e r n m e n t. H a s n o w
b e g i n n in g t o l e a r n t o s t a n d o n i t s o w n
fe e t.
4 6 9 (4 1 p er c en t o f to ta l em p lo ye e s)
•
F a m il y o f d i g i ta l s w i t c h in g s y s t e m s
o f v a r y i n g c a p a c i ti e s b e s t s u i t e d t o
B r a z i li a n c o n d it i o n s .
•
H a s a c l e a r s tr a t e g y f o r m i g r a t in g t o
N e w G e n e ra tio n N e tw o r k S w itc h e s
•
O p t i c a l N e t w o r k in g P r o d u c t s
•
•
T e le c o m s o ft w a r e d e v e lo p m e n t
W e a k . T r a d i ti o n a l s tr e n g th o n l y i n
F i x e d T e l e p h o n y . N o c l e a r s tr a t e g y .
A p p e a rs to h a v e lo st o u t to M N C s
1 0 9 p a t e n t s w e r e g r a n t e d w i th in
B r a zil an d 5 0 w e r e g ra n ted a b r o a d .
N o m a jo r e x p o r t s .
•
•
•
•
•
•
•
•
•
T h ree ph ases
P h a se 1 : 1 9 7 6 - 1 9 84 : T h e
T e le c o m m u n ic a tio n D e v e lo p m e n t T a s k
F o r c e d e c i d e d t o in v e s t in th e
d e v e l o p m e n t o f e l e c t r o n i c s w i t c h in g
s y s te m s . T h e T D X 1 (8 0 0 0 lin e s ) w a s
d e v elo p e d b y 1 9 8 4 .
•
S ec on d ph a se 1 9 8 5 - 1 99 8 : E T R I w a s
e s t a b l i s h e d in 1 9 8 5 a n d in 1 9 9 2 it s
a ff i l i a t i o n w a s c h a n g e d fr o m th e
M O S T to M IC .
•
T h ir d p h a s e : 1 9 9 8 -. I t w a s r e s tr u c t u r e d
th r e e t im e s in A p r il 1 9 9 8 , A p r i l 2 0 0 1
a n d fin a ll y f o r th e th ir d ti m e in A p r il
2 0 0 2 . C u r r e n tl y i t i s o r g a n i s e d in t o 6
tec h n o lo g y la b o ra to rie s, 3 d iv isio n s an d
1 a ffilia te d o r g a n is a tio n .
US $
3 1 5 .2 5 m il l i o n ( R a t i o o f E T R I ’ s R & D
b u d g e t t o th e R & D E x p e n d i t u r e o f E r i c s s o n in
2 0 0 3 is : 0 .0 9 )
A b o u t 6 0 e r c e n t r e s e a r c h g r a n ts fr o m its p a r e n t
M in i s tr y o f I n f o r m a ti o n a n d C o m m u n i c a t i o n .
T h e la b a ls o r e c e iv e s r o y a lty fr o m
m a n u fa c tu r ers .
1 6 0 0 ( 8 7 p er c en t o f to ta l)
F a m il y o f d i g i ta l s w i t c h in g s y s t e m s o f v a r y i n g
c a p a c i t i e s b e s t s u it e d t o K o r e a n c o n d it i o n s , r
R u r a l A u to m a tic E x c h a n g e s . S iz e a b le a m o u n t o f
th i s h a v e b e e n e x p o r t e d t o o t h e r d e v e l o p i n g a n d
tr a n s it i o n c o u n tr i e s
N o t e l e c o m s o f t w a r e m a n u f a c tu r in g o n i t s o w n ,
V e r y s t r o n g in t e r a c t i o n w i th l o c a l m a n u fa c t u r in g
co m p a n ies.
•
V e r y s tr o n g . W a s th e fir s t to c o m m e r c ia lis e
C D M A t e c h n o l o g y . C u r r e n tly w o r k in g o n 4 G
•
S t r o n g p a t e n t in g r e c o r d . A t o t a l o f 1 0 , 7 9 6
n a ti o n a l a n d 2 4 6 9 p a t e n t s t o it s c r e d i t s in c e
1976.
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
36
Comparison of Brazilian and Korean R&D initiatives in
Telecommunications Technology- II
9. Instruments of state support
10: Future scenario
• Fiscal instruments for supporting
R&D
• Legal instruments for continuing to
assure a potential markets for its
technology within the domestic
economy
• Learning to adjust to the external
environment characterised by
increased competition from MNCs
and freer imports
• Fiscal instruments for supporting R&D;
• Public procurement under strain owing to
privatisation of telecomservices
• Marching forward, although the restructuring
since 1998 did affect it adversely. The changed
policy forced it to be short-term in its research
focus. However, the most recent restructuring is
placing it once again on a sound footing.
Sunil Mani, UNU-INTECH, ITU Geneva, April 14 2004
37