Hong Nam-ki: "Growth Potential Declines Due to Innovation Capability Gap Between Large and Small-Medium Enterprises"

Published 08 Dec.2021 08:53(KST)

Ministry of Economy and Finance and World Bank to Hold the 3rd Global Innovation Growth Forum on the 8th

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is delivering opening remarks at the meeting of ministers in charge of real estate market inspection held on the 8th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

[Sejong=Asia Economy Reporter Kim Hyunjung] Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki stated on the 8th, "As the innovation capability gap between leading and lagging industries, as well as between large corporations and small and medium-sized enterprises (SMEs), continues, a decline in productivity and growth potential is emerging."

In his opening remarks at the '3rd Global Innovation Growth Forum (GIGF 2021),' jointly hosted online and offline over two days by the Ministry of Economy and Finance and the World Bank (WB) starting today, Deputy Prime Minister Hong explained, "We must create a virtuous cycle of growth through the diffusion of innovation." He added, "Since COVID-19, disparities between countries and sectors and new polarization have intensified," and warned, "Domestically, a K-shaped recovery between large corporations and big tech versus SMEs and manufacturing, meaning a widening recovery gap, may signal the onset of a Great Divide."

Furthermore, he emphasized, "To promote sustainable innovation growth, all sectors must share the benefits of innovation growth and enhance fairness in the innovation process to prevent winner-takes-all outcomes," citing four major innovation growth strategies: leading innovation, diffusion, cooperation, and sharing.

Manuela Ferro, Vice President of the World Bank, highlighted in her welcoming remarks the need for financial support to reverse poverty trends in developing countries hit harder by COVID-19 and to achieve a 'better reconstruction.' The forum, held under the theme 'New Challenges of Innovation Growth in the Post-COVID Era,' features keynote speeches by Børge Brende, President of the World Economic Forum, and Yoon Sung-ro, Chairman of the 4th Industrial Revolution Committee.