Improvement of Indirect Cost System and Proposal to Increase R&D Expenses

'Creating World-Class Universities: Research-Oriented University 2.0'

"For universities to thrive, they must establish a research immersion environment characteristic of advanced countries."


He emphasized that by moving away from the developing country-type operational model of the 1970s and establishing an advanced innovation research system, universities can play the role of a first mover leading the world.


On the 23rd, Lee Yong-hoon, President of UNIST, stated at a press conference, "Innovative technologies that started at top research-oriented universities, such as the Moderna vaccine and artificial intelligence deep learning technology, are leading the world."


He stressed, "It is now time for South Korea to nurture world-class research-oriented universities." He also said, "Nanyang Technological University and Hong Kong University of Science and Technology have long surpassed KAIST and POSTECH, which were once benchmarking targets," adding, "Bold policy decisions and investments in universities' research immersion environments are urgently needed."


President Lee pointed out, "Since the 1970s, the current science and technology research support system, centered around KAIST, has focused on supporting individual researchers mainly in applied technology," defining this as the developing country-style 'Follower-type Research-Oriented University 1.0'.


He then emphasized, "Only by properly establishing a First Mover-type Research-Oriented University 2.0 system, where South Korea leads the world, can we truly leap forward as an advanced science and technology nation."

"Leading the World by Establishing a 'Research Immersion Environment'... UNIST President Lee Yong-hoon Presents Strategy for Fostering Research-Oriented Universities" View original image

The difference between Research-Oriented University 1.0 and 2.0, as described by President Lee, lies in whether a systematic research immersion environment is in place. The developing country system, where researchers must manage everything from research projects to equipment themselves, hinders researchers' creative research immersion. In reality, MIT has 11 support staff per professor, while even the best domestic universities like KAIST have only 3.


President Lee stated, "For universities to establish a systematic research immersion environment, they must continuously secure and nurture specialized research support personnel, and a unified, dedicated advanced-country-type research support system for operating and managing research equipment must be firmly supported."


He cited the lack of "discretionary funds for investment" as the reason why Korean universities find it difficult to establish a proper research immersion environment. Compared to advanced countries like the U.S. and Germany, university headquarters lack sufficient resources to invest in infrastructure and personnel development.


Poor finances lead to reduced autonomy, which becomes an obstacle for universities to boldly explore and invest in new research fields that look ahead to the future 10 years from now.


President Lee proposed three measures to secure university funding: increasing research funds invested in universities, especially basic research funds; raising the ratio of indirect research costs and adopting a fixed-rate system; and introducing a General University Promotion Fund.


He said, "South Korea's total research and development expenditure is around 100 trillion won, ranking fifth worldwide, but only 9.1% of that goes to universities. When considering only basic research funds, which form the foundation of innovation, universities account for just 3.6%, so an increase is necessary."


He also suggested raising the ratio of indirect research costs. While Korea's institutions set indirect costs at 18-23% of research funds, the U.S. is about 35%.


He emphasized that indirect research costs are currently the only funds universities can invest in creating a research immersion environment. He said, "The indirect cost ratio should be raised and fixed." However, to avoid harming researchers, the increase should be implemented by adding indirect costs on top of direct research funds.


He also mentioned the need for support in the form of a 'General University Promotion Fund' through policy initiatives.


The General University Promotion Fund differs from existing national research and development grants, which are provided as research projects, in that universities can freely decide how to use these funds.

President Lee Yong-hoon's book proposing a research-oriented university policy, <i>Creating World-Class Universities: Research-Oriented University 2.0</i>.

President Lee Yong-hoon's book proposing a research-oriented university policy, Creating World-Class Universities: Research-Oriented University 2.0.

View original image

President Lee Yong-hoon released "Creating World-Class Universities: Research-Oriented University 2.0," which contains these policy proposals. It includes the role and significance of research-oriented universities in the era of technological hegemony, and strategies for fostering research-oriented universities based on comparative analyses between advanced countries and domestic universities.



Based on over 30 years of experience as a KAIST professor and leading UNIST for the past four years, this book presents concrete action plans.


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

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