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[Real Reality]

Korean Manufacturers Less Innovative
"Lack of attention to innovation leads to a fall in research and development (R&D) activities, which will cast a cloud on the long-term growth of a manufacturing company," the KIET report said.
Then why are Korean manufacturers not willing to drive up innovation? The report said that lack of funds and personnel are the top two reasons.

Lack of motivation is one of the most important reasons.

"SMEs, most of which are sub-contracted firms of conglomerates and tend to be skeptical about investing in technological innovations, are more difficult to motivate due to low incentives from their bigger clients," the institute added.
By Seo Jee-yeon, Korea Times (July 31, 2005)
http://times.hankooki.com/lpage/biz/200507/kt2005073121175711890.htm

Korea Isolated in Global Business Investment Boom
The Korean economy is losing vitality, as corporate investment has stayed in the doldrums despite a world economic upturn led by an investment boom in major countries, including the U.S. and Japan.

The top economic policymaker stressed that without a full recovery in facilities investment, the economy is unlikely to record potential-level economic growth. In advanced countries, facilities investment played a key role during the course of their per capita income increasing to the $20,000 level from the $10,000 level. The U.S. recorded 4.8 percent growth in corporate investment on average, and Japan and Singapore posted 8 to 10 percent expansion during the period.
By Kim Jae-kyoung, Korea Times (July 31, 2005)
http://times.hankooki.com/lpage/biz/200507/kt2005073117164811860.htm