Issue Korean strength: R&D and human capital

Summary

KDI counts research and human capital among Korea's major strengths. Korea spent 4.96% of GDP on R&D in 2023, the second highest ratio in the world, and ranks near the top of the OECD in researchers per million people and in tertiary education attainment. It has also ranked first globally in patent applications relative to GDP. The report treats these inputs as a valid starting point for building human capability in the AI era. The problem, it says, is conversion: the chain from R&D to patents, exports and productivity is concentrated in a few large firms, revealing inefficiency alongside the asset.