1) Evaluate how these innovations and technology adoption in companies would drive South Korea’s economic growth based on the Solow model. 2) Explain three methods on how a country could encourage research and development.
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South Korea has reclaimed the number one spot in terms of the ratio of research and development (R&D) spending to The survey was conducted on 59,603 domestic companies from April to September based on the OECD standards for international comparison of material and human resources injected into R&D. Out of the 59,603 firms, 50,619 responded to the survey, showing a collection rate of 84.9 percent, and those not responded the survey were so small that they wouldn’t actually affect the results, according to the government. Korea’s total R&D investment recorded 78.8 trillion won (US$69.73 billion) last year, up 9.38 trillion won (US$8.3 billion) from a year ago. South Korea ranked fifth among OECD member countries after the United States, China, Japan, and Germany. The R&D investment of the private sector grew 14.7 percent, or 7.72 trillion won (US$6.83 billion) to 60.06 trillion won (US$53.15 billion) compared to the previous year, while that of the government and public sector rose 8.1 percent, or 1.33 trillion won (US$1.17 billion). |
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1) Evaluate how these innovations and technology adoption in companies would drive South Korea’s economic growth based on the Solow model. 2) Explain three methods on how a country could encourage research and development. |
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