Beyond Cost 2024

South Korea’s National Research and Development Innovation Act helps streamline governance of research and development (R&D) between government departments, enhancing the country’s competitive edge.PUBLIC SECTOR INTERVENTION 4 National Research and Development Innovation Act, 2022, South Korea PUBLIC-PRIVATE PARTNERSHIP 3 Incentives for R&D, Intel and Israel The Israeli government has provided extensive support for US component manufacturer Intel to expand its research and development capability in Israel in recent years. The most recent example was the provision of a $3.2 billion grant provided in December 2023 for the construction of a $25 billion computer chip plant in Kiryat Gat, Southern Israel. The government has also supported Intel on several of its investment plans in the country, which total over $50 billion to date, and include four development centres and two fabrication plants. Intel has grown to become Israel’s largest private-sector employer, with around 11,700 employees, and its operations have made a significant contribution to the national economy. In total, Intel was responsible for around 5.5% of the country’s high-technology exports (worth $8.7 billion) and 1.75% of the country’s GDP in 2022.8 Source: Astute Group. (2023). Intel will receive $3.2 billion in Israeli funding to build chip factories. Impact Financial Regulatory Operational Strategic This act increases R&D funding, particularly around innovative and challenging areas such as defence. Government departments can also collect royalties and specific sums for reinvestment, dependent on research outcomes.The act streamlines governance of R&D across government departments, mandates the open sharing of data, establishes standards regarding R&D outcomes and intellectual property rights, and promotes ethical research practices.It creates an autonomous and responsible research environment, reduces the administrative burden and facilitates greater collaboration between the public sector, private sector, research organizations and academia.It enhances domestic capability to develop and implement innovative next- generation technologies. It also serves as a template for best practices, and global excellence and cooperation on R&D. Source: Korea Legislation Research Institute. (2020). National Research and Development Innovation Act. Beyond Cost: Country Readiness for the Future of Manufacturing and Supply Chains 15