Contract Manufactured Products Also Designated as 'Innovative Products'

Jeong Byeong-seon, 1st Vice Minister of the Ministry of Science and ICT

[Asia Economy Reporter Junho Hwang] The government has eased the application requirements for a system that allows public institutions to enter direct contracts only for innovative products developed through government research and development projects. Previously, only products with direct production facilities were recognized as innovative products, but now products produced through consignment are also recognized as innovative products. There is growing interest in whether a wider variety of innovative products can expand their market channels.

The Ministry of Science and ICT announced on the 31st that it will ease the application requirements for the "Excellent R&D Innovative Product Designation System," which allows products developed through government research and development (R&D) projects to be eligible for direct contracts with public institutions if their innovativeness is recognized.

The government has reflected field feedback on the innovative product designation system to improve it so that companies without direct production facilities can also participate in the designation. Previously, only some small and medium-sized enterprises (SMEs) with direct production facilities could participate in the innovative product designation system. Accordingly, it is expected that SMEs specialized in production within Korea will also receive indirect benefits.

The Ministry of Science and ICT will start designating innovative products under the revised plan from the second half of this year. SMEs that have commercialized Ministry of Science and ICT R&D outcomes completed within the last five years can apply. SMEs that have transferred Ministry of Science and ICT R&D outcomes from universities or government-funded research institutes and commercialized them are also eligible to apply.

Eligible companies can apply through the Korea Industrial Technology Association website from the 25th of this month until the 24th of next month. It takes about three months until product designation.

Products designated as "Excellent R&D Innovative Products" after evaluation will be registered on the Public Procurement Service's Nara Market. SMEs can request purchases from the Public Procurement Service or enter into direct contracts with public institutions to sell innovative products.

Jung Byung-seon, First Vice Minister of the Ministry of Science and ICT, stated, "In the second half of this year, with the relaxation of applicant qualification requirements and increased awareness of the system, we hope that more innovative products will be able to connect with public procurement through the support of this system."

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