Geoscience Reference
In-Depth Information
infrastructure techniques such as the MegaBlock concept where modular units of a
ship are built on land and then combined in or on the water to create a new ship.
Many of these technologies came from others and thus may be viewed mostly as
imitation innovation. However, unlike many other countries subsequent to absorp-
tion of the newly foreign acquired technologies, additional Korean innovations
were erected incrementally on top of the original best practices. The ability to
innovate on top of best practice is a capability that is not well developed in many of
the emerging economies of the world. Korea has demonstrated that it is somewhat
unique in this regard.
12.5.7 Cooperation
Cooperation was at all times strong between the cluster industry leaders and the
central Korean government. Initially the government set a strategic direction and
incentivized the small and to some extent middle sized companies to expand the
infrastructure and operations needed to support shipbuilding. Later government
helped to incentivize development of non-profit organizations and associations of
business, industry and government officials in an effort to increase cross organiza-
tion networking, knowledge sharing, and learning. When the shipbuilding cluster
began to experience declining or perceived conditions of decline in the late 1990s
the government provided leadership in the form of incentives and information
resulting in company, industry and cluster restructuring. During the stage of
exploratory expansion the role of government seems to have receded in importance.
Government activity appears to have been strongest during the take-off, exploratory
and exploitive stages. Instead of adopting a strong protectionist role when cluster
growth began to slow rapidly the Korean government provided leadership and
incentives (e.g., loans and grants) for restructuring in order for the industry to
renew its competitiveness. The way the government has behaved with respect to the
shipbuilding industry cluster provides support for an interpretation that the cluster
was nearing the Exhaustion stage in the late 1990s. But because of government
intervention and accommodating industry leadership the cluster soon was
reengineered into renewal and the rebirth of an Exploratory Expansion stage
cluster.
The role of government as a leader and incentive provider has been significant at
and before take-off, during the Exploratory Expansion and Exploitive Expansion
stages and particularly important during the pre-exhaustion stage that the Korean
shipbuilding cluster experienced in the late 1990s. Given the current status of the
shipbuilding cluster in Korea it seems that the cluster from the perspective of the
role of government is now in the latter part of the 2nd Exploratory Expansion stage.
It is important to recognize that government has exercised its role at nearly all
stages of the shipbuilding cluster's development.
