Business Incubation Strategy of High-Tech Venture Firms in a Science Park - Technopolis: Best Practices for Science and Technology Cities - page 154

Table 2 Major research institutes in DST and their spin-offs
Name of research institute Number of spin-off firms

Electric and Telecommunication Research Institute (ETRI) 57

Korea Standard Science Research Institute 19

Korea Advanced Institute of Science and Technology (KAIST) 117

Total of major RIS' spin-offs (88.1 % of total R&D spin-offs) 193

Source Oh (2005); Kim ( 2000 )

The start-up activities in DST began to be observed from the time when
institutions in DST launched their TBIs. As research institutes and universities
including ETRI, KAIST, and CNU participated in TBI business, the number of
venture firms in DV suddenly increased, and this made the venture start-up in DST
to be accepted as an essential aspect and activity area rather than be understood as
a mere part of R&D activity. When venture firms from the major 10 R&D centers
in DST were surveyed prior to 2004, there were 2 firms in DST in 1990, 20 firms in
1996, 130 firms in 2002, and an increase to 219 firms in 2004. If job creation is
analyzed for the same years, 35 persons were employed in 1990, 187 employees in
1996, 2,212 employees in 2002, and 3,237 persons were employed in 2004.
The total of 219 venture firms created from 10 public research institutes in DST
by 2004. ETRI, KAIST, and Korea Standard Science Research Institute are the
main bodies, which actively contributed to technology commercialization. And,
the venture start-ups extended to all areas of Daejeon since late 1990's. The
venture inauguration originating from DST began a full-scale relationship with
regional territory not only to Daejeon but also to its vicinity (Table 2 ).
The experience of KAIST is very interesting, because it shows us the potential
of business incubation driven by a leading university in DST.
Since 1994, 127 companies were selected and incubated in KAIST incubators.
Since then, 13 companies left KAIST for various reasons, 5 companies canceled
the projects, 4 projects failed, but 5 companies graduated in 2000, such as Mari-
Telecom, Darim Vision, Intersys, Setri, and Intelligent Telecommunications (IT),
which were good examples of successful venture firms in DV.

4.3 Support Mechanism by TBI

Prerequisites for creating high-tech start-ups should cover a favorable economic
climate, controlled inflation, and currency exchange rate as well as commercial
framework. Therefore, it is important that the special influence of DST and com-
plemental structures be established to promote creation and growth of venture. In
addition, the software structure of incubation is comprised of open markets, cost
effective system for delivering credit and technical support, and protection for both
intellectual properties and environment. Also it is expected that the government's
role is to promote small/medium enterprises, to prime the pump, and to develop the
infrastructure and self-operation for business people during the time of social change.