The dynamic effect of knowledge capitals in the public research institute: insights from patenting analysis of ITRI (Taiwan) and ETRI (Korea)

This study aims what knowledge capital accumulated by the public research institutes (PRIs) of South Korea and Taiwan to facilitate process configurations of new industrial structure. The patenting trends of two PRIs, ETRI of South Korea and ITRI of Taiwan, are assessed to highlight the established knowledge structures for emergence of multi-agent structure since 1990s. To examine their dynamics and variations of knowledge capital, the data series are separated into two phases (catching-up phase from 1970s to 1990s, and post catching-up phase since the 2000s) in accordance to (1) number of patents, (2) number of sole owned and co-owned patents, (3) backward and forward citations, (4) science-linked patents, and (5) fields of patent. When the role of PRIs in the latecomer country is evolving from a facilitator in the catching-up phase to become a mediator in the post catching-up phase, this study demonstrated their influence and dynamic effect in reinforcing industrial strategies and national approaches to attain endogenous structural change in the national innovation system. Our results signal telecommunications is the promising technology targeted by Korea’s chaebols while Taiwan’s small-medium size enterprises are utilizing the aggregate knowledge capital accumulated and derived from semiconductor technologies to develop their niches onto a diverse range of product innovations.