Industrial Technology Research Institute (ITRI) of Taiwan and Korea Institute of Science and Technology (KIST) of Korea are among the most acknowledged public research institutes in East Asia. This paper applies the evolutionary perspective for a comparative case study, emphasizing the path dependence with the innovation system context. Also, this paper elucidates the factors that configured the dynamics of ITRI and KIST in populating spin-offs and advancing biotechnology, respectively. It sheds new light on what particular organizational structures and routines would posit functionality in propagating certain activities and outcomes. The case of ITRI implies a strong mechanistic push in its organization to expedite its research activities and spin-offs. Meanwhile, KIST is endowed with patient capital and instituted service seniority in its career ladder, thus enabling it to develop science-based technologies and to evolve into a university-like institute. The structures and routines of the two PRIs are profound and productive in advancing their respective desired research agendas. However, their instituted routines might limit their pursuit of other kinds of growth ventures. This paper shows a depiction of organizational career ladders and spin-off mechanisms, which provides a useful guide for a government aspiring to construct similar structures and routines for certain outcomes.
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The success of economic catching-up (Berger and Lester Citation2005; Lee Citation2016b) and development (e.g. Amsden Citation1989; Amsden and Chu Citation2003) of Taiwan and South Korea (hereafter, Korea) are well captured and reported in the literature. It is not uncommon to learn of the important roles played by public research institutions (PRIs) in defining the paths of the two catching-up economies (Mathews and Cho Citation2000: 113, 163). The cases of the Industrial Technology Research Institute (ITRI) of Taiwan and the Korea Institute of Science and Technology (KIST) are among the most acknowledged PRIs. They seem to share many comparable roots in the catching-up period (1960s–1990s). With the assistance of the United States Agency for International Development (USAID) and funding from the World Bank, Korea established KIST in 1966 to build its own basis for applied science research. This was to meet the dire need for upgrading in the local industries, as Korea wished to develop its export market. KIST was modeled after the US Battelle Memorial Institute, which set not only the initial design but also the evolutionary direction going forward. Meanwhile, ITRI was established in 1973, modeled after KIST and the Japan Science and Technology Agency. Their respective roles revealed, among other things, the crucial factors in defining the success of the electronics and semiconductor industries of the two economies. They played an intermediary role in connecting the production activities of their respective small-to-medium-sized enterprises (SMEs) to the global production value chain and (from time to time) upgrading both their technologies and networks.
