Identification of the Second Death Valley in Innovation Process in Korean Energy Sectors

초록

In commercializing process of technological innovation, there is a Death Valley, which blocks technological innovation and commercialization (Auerswald & Branscomb, 2003). Public R&D for recovering the Death Valley has been designed in Korean governmental policies. To decrease technological uncertainty, risk, and ambiguity, various R&D policies have supported SMEs in Korea both directly and indirectly. Indirect supports for SMEs have been mainly based on Korean universities’ R&D. This study decomposes the traditional Death Valley into the 1st Death Valley and the 2nd Death Valley. The 1st Death Valley has been studied frequently, and various policy suggestions have been recommended in academic and policy papers (Cooper, R. G., 1990; Jolly, V. K., 1997). However, studies on the 2nd Death Valley are rare. The 2nd Death Valley seems to be located at the firms’ middle or latter commercialization process, in which the value of technological innovation seriously drops. This study argues that there can be serious appropriation problems in the 2nd Death Valley; therefore public R&D as well as typical financial aids can support the 2nd Death Valley areas. This study compares the traditional 1st Death Valley to the 2nd Death Valley. Common and different points, between the two, are identified. Policies adjusted to each Death Valley are suggested. Particularly, the author describes the 1st and the 2nd Death Valley in Korean energy sectors’ examples. Keywords: 1st Death Valley, 2nd Death Valley, public R&D, appropriation, spill-over