Research Report
Analysis of New Growth Strategies (Research and Innovation Projects) and Regulatory Legislation Trends in Major Countries
Ⅰ. Backgrounds and Purposes
▶ Background of a Research
○ Excessive state regulation and intervention, public sector inefficiency, and a declining labor force are weakening the drivers of economic growth, raising the need to establish a new growth strategy that can strengthen economic growth momentum.
○ In this regard, major developed countries, including the European Union, are promoting projects to prepare for the Fourth Industrial Revolution and the future society.
○In particular, the European Union is promoting the Horizon Europe program, France is promoting France 2030, Germany is promoting the High Tech Strategy, and Japan is promoting the Moonshot program. The UK has published the ‘White Paper on Regulatory Innovation for the Fourth Industrial Revolution’ to foster future new industries, and the US is promoting various research and innovation programs and preparing a system for regulating artificial intelligence.
▶ Purposes of a Research
○ The purpose of this study is to review the trends of new growth strategies and regulatory legislation in major developed countries (France, Germany, the United States, the United Kingdom, and Japan), including the European Union, to enhance economic growth and international competitiveness and prepare for the future society, including the Fourth Industrial Revolution.
○ Based on this, we will compare them with the government’s New Growth 4.0 strategy, analyze the problems revealed in the promotion and direction of policies, and suggest improvements.
○ In addition, to prepare for the future society, major countries including the European Union are promoting research and innovation programs, so we aim to find ways to improve research and development support.
Ⅱ. Major Content
▶ The European Union’s New Growth Strategy and Regulatory Framework
○ The EU is implementing a new industrial strategy to strengthen the single market and enhance international competitiveness, emphasizing innovation and competition to meet the challenges of the green transition (carbon neutrality) and digital transformation.
○ Horizon Europe, a research project to prepare for the future of Europe, is continuing to be implemented, with a budget of 80 billion euros. More than 35% of the budget is dedicated to climate-related research.
▶ France’s New Growth Strategy and Regulatory Framework
○The decline in manufacturing has raised concerns about France’s industrial technology competitiveness, but since the 2010s, investment plans to grow new industries have been in full swing. In particular, the European innovation programs National Research Strategy Roadmap (2015), France Relance (2020), and France 2030 (2021) are being promoted.
○The social challenges (10 items) presented in the National Research Strategy (SNR) report published in 2015 include current issues in France and the challenges of preparing for the future society. The National Research Agency (ANR) is a key player.
○In October 2021, France 2030, a massive investment plan to foster France’s future industries, was announced, with a budget of 54 billion euros to continue to develop the key sectors of energy, automotive, health, agriculture, food, aeronautics, and space. The priority of the France 2030 investment plan is to reduce carbon emissions and transition to a greener ecology.
▶ Germany’s New Growth Strategy and Regulatory Framework
○In 2018, Germany launched its High Tech Strategy 2025, which identifies explicitly three areas and 12 tasks. Since its inception in 2006, the German High Tech Strategy has been evaluated, formulated, and implemented in a four-year cycle under the leadership of the Federal Ministry of Education and Research and is the federal government's comprehensive core strategy for research and innovation policy.
○ Germany's high-tech strategy has been in place for more than 20 years, since 2005, and serves as a guideline for policy direction. In particular, it is noteworthy that it has maintained its fundamental perspective despite the change of government, fluctuations in political power, and changes in legislative periods.
○ The state supports networking between various actors such as the central and local governments, academia and industry, business and labor, education and practice, to protect domestic technological sovereignty and cultivate research personnel, and to promote various international cooperation and networking.
▶ The UK’s New Growth Strategy and Regulatory Framework
○ In the UK, the 2017 Industrial Strategy Green Paper defines the national goal as becoming a leader in the digital economy and presents specific goals and strategies for digital transformation.
○ In terms of new industries, the UK is actively promoting new growth strategies for unicorn startups and artificial intelligence, which are areas of strength.
○ The UK Research and Innovation Organization (UKRI) is establishing a five-year future transformation strategy from 2022 to 2027.
▶ New Growth Strategy and Regulatory Framework in the US
○ While emphasizing the development of the semiconductor industry, the U.S. continues to invest in and support new industries such as artificial intelligence and the data industry.
○ In particular, it has released a blueprint for an AI Bill of Rights and is enacting an AI Risk Management Framework (AI RMF). In addition, it is passing legislation on data and privacy protection.
▶ Japan’s New Growth Strategy and Regulatory Framework
○ Japan is discussing industrial structure reform to overcome the prolonged economic downturn and a new industrial strategy to prepare for the Fourth Industrial Revolution.
○ In addition, policies are being formulated to realize Society 5.0, a super-smart society, as a model for the future. The research and innovation program Moonshot is being promoted.
Ⅲ. Expected Effects
○ By benchmarking the cases of major developed countries, including the European Union, that are preparing for the future society, such as digital and artificial intelligence, climate change, energy, and health, we propose policies to prepare for the fourth industrial revolution and the future society.
○In particular, it reviews and analyzes overseas cases to examine the deficiencies of the New Growth 4.0 Strategy promoted by the government and suggests improvement measures.
○By reviewing research and innovation programs promoted by the European Union and major developed countries, the report suggests that R&D support programs to prepare for the future society. It provides an opportunity to establish governance among the government, academia, and industry to develop research and innovation programs that can be linked to nationally competitive industrial development and growth strategies.