Is Post-Corona an Opportunity? "What Should We Develop?"

[Asia Economy Reporter Junho Hwang] Although new digital innovations have begun, such as the rapid rise of the untact (contactless) industry in response to the novel coronavirus infection (COVID-19), a survey revealed that companies themselves are struggling to grasp what kind of research and development (R&D) they should pursue in response. It was analyzed that they face difficulties in setting R&D directions due to a lack of information and manpower, and they expressed the need for government assistance. The Korea Industrial Technology Association announced on the 2nd the results of the "Post-COVID Corporate R&D Implementation Survey," conducted from the 3rd to the 11th targeting 1,351 companies with research institutes.

Post-COVID, What Should Be Developed?

66.6% of respondent companies stated that they are not engaging in R&D to meet new business opportunities arising after COVID-19. They answered that they are either completely unprepared (20.3%) or insufficiently prepared (46.3%).

The most common reason for being unprepared was not knowing what kind of R&D to pursue. The highest response was difficulty in R&D planning activities at 45.6%, followed by difficulties in conducting research and development (30.7%) and challenges in technology commercialization (16.2%).

Although various trends such as untact, digitalization, and home office are emerging, it is analyzed that companies find it difficult to readily invest in R&D.

In particular, companies that are unprepared for R&D felt significantly more difficulty in R&D planning. Among companies that responded they are relatively prepared, 39.2% reported difficulties at the planning stage, whereas in the group of companies with insufficient preparation, the proportion reporting planning stage difficulties was 48.7%, nearly 10 percentage points higher.

The Government Should Provide Information for R&D Planning

Regarding the reasons (multiple responses) for not knowing what R&D to pursue post-COVID, many companies cited a lack of market information analysis capability (50.4%). Other reasons included lack of competitor analysis capability (42.6%), lack of R&D strategy establishment systems (39.1%), shortage of dedicated R&D planning personnel (32.4%), and difficulties in cooperation with business divisions (13.8%).

Companies requested that the government provide technology and market information (76.3%), expand project planning programs utilizing untact and digital technologies (67.0%), support project planning based on patent analysis (65.9%), and support the use of untact solutions (59.2%).

Machanghwan, Executive Vice Chairman of the Korea Industrial Technology Association, said, "For companies to seize the market after COVID-19, the role of the R&D sector is very important. However, companies lack R&D planning capabilities and do not even know what R&D to pursue as future growth engines." He emphasized, "Until now, government R&D support has focused heavily on research and development execution, but for small and medium enterprises struggling to discover new R&D items, support at the R&D planning stage must be drastically expanded."

This content was produced with the assistance of AI translation services.