Seoul Center for Creative Economy & Innovation (Seoul Changgyeong) is moving to fully build a demand-based R&D and commercialization model by linking the Small and Medium Enterprise Technology Innovation Development Project with open innovation.
Marking a year and a half in office, CEO Lee Young-geun of Seoul Changgyung(photo) said in a written interview with ChosunBiz on the 10th, "R&D should not be vague technology development but must be tied to the real market," adding, "Demand-based R&D led by major companies is the core structure that maximizes the effectiveness of the Small and Medium Enterprise Technology Innovation Development Project."
Lee diagnosed the biggest problem in Korea's current R&D ecosystem as the disconnect between technology development and the market. Lee said, "Many startups have promising technology but cannot find a market," adding, "Conversely, there are cases with market opportunities but insufficient technological capability. A structure was needed to link the two."
The Small and Medium Enterprise Technology Innovation Development Project is run by the Ministry of SMEs and Startups, with the Korea Technology and Information Promotion Agency for SMEs (TIPA) in charge and Seoul Changgyung discovering demand tasks from major companies.
Seoul Changgyung first identifies problem-based demand presented by large and mid-sized companies, and then links startups and small and medium-sized enterprises that have the technology and capabilities to solve those tasks. After that, it helps those companies secure R&D funding through the Small and Medium Enterprise Technology Innovation Development Project.
Lee emphasized, "When clear demand from major companies is set, the direction of R&D does not drift," adding, "This structure aligns with the 'purpose-driven R&D' that the Small and Medium Enterprise Technology Innovation Development Project aims for."
◇ Expanding into forestry, marine, and bio… from PoC to market validation in one
Seoul Changgyung this year pursued the nation's first open innovation in the forestry sector. LG Electronics, Hyundai E&C, and Yuhan-Kimberly presented problems in the forestry and environment fields, and startups are conducting PoC (proof of concept).
Lee explained, "Who defines the problem determines the speed of innovation," adding, "A structure in which major companies present the problems and startups develop the technology naturally links R&D to subsequent market validation."
Seoul Changgyung is expanding from its existing bio, marine, and aerospace sectors into deep tech and is operating a joint platform in cooperation with creative economy and innovation centers across the country.
Lee said, "In an era of competition for technological supremacy, it is impossible to nurture deep tech alone," adding, "Centers nationwide must unite, and they must be structurally linked with the Ministry of SMEs and Startups (MSS) R&D programs."
To bridge the gap between R&D and investment, Seoul Changgyung created an investment operations office and, for the first time among public institutions, introduced SAFE (simple agreement for future equity) investments. Lee emphasized, "Early-stage companies face high uncertainty and have difficulty attracting private investment," adding, "The public sector needs to shoulder this phase so the ecosystem can become self-sustaining."
Beyond direct investments and forming angel investment associations, the center operates a secondary platform, Es Lounge, to increase startups' chances of capital recovery. Because secondaries serve to restore liquidity in the startup ecosystem, the judgment is that once liquidity is secured, the number of companies that progress from R&D to commercialization can increase.
◇ Building an end-to-end platform, from "R&D–PoC–commercialization–investment"
Seoul Changgyung plans to focus on completing a structure in which the Small and Medium Enterprise Technology Innovation Development Project naturally leads to PoC, commercialization, and investment.
"There are too many companies that cannot move on to the next stage after R&D. We link PoC immediately after technology development, and based on the results, we are creating a virtuous cycle that extends to sales channels and investment."
To that end, the newly launched Startup One-Stop Support Center is being built as an integrated online and offline window, and a structure is being put in place to resolve legal, tax, patent, and regulatory issues in one stop. The explanation is that the goal is to reduce all inefficiencies that sit between technology development and commercialization.
Seoul Changgyung is also promoting overseas PoC models focused on the United States, Europe, MENA (Middle East and Africa), and Japan.
Lee said, "R&D outcomes should not remain confined to the domestic market; they must be linked to global validation," adding, "We are also strengthening an inbound structure so that overseas companies attempt collaboration in Korea."
Lee aims to strengthen a nationwide alliance system among innovation centers and to build a Korea-style industrial technology innovation model that links deep tech, major companies, government R&D, and investment into one.
Lee emphasized, "We must further solidify the sequence in which startups create technology, major companies present problems, government R&D provides support, and VCs provide follow-on investment," adding, "Seoul Changgyung will continue to do its utmost in that role."