Ups and Downs of the National R&D Budget

  • Reporter. 임은소
  • 입력 2024.03.04 20:46
  • 수정 2024.03.08 15:17

The 2024 national research and development (R&D) budget finalized last December marked its first budget cut in 33 years. This reduction is expected to affect many professors and students who rely on it to conduct research. Thus, the Sungkyun Times (SKT) plans to discuss the impact of the budget cut on universities and explore solutions to move forward.

 

[Relevance and Deduction]

- Backbone of the Research Ecosystem

R&D encompasses all fundamental and applied research and development activities that utilize these findings for various purposes. For most university-level research, the number of projects funded by government agencies depends on the national budget. To receive financing, professors submit a research proposal that is evaluated by a committee of experts in the respective area. If selected, the funds are directed to the professor and used for materials, equipment, and student research assistant wages. According to the Korea Institute of Science and Technology Evaluation and Planning (KISTEP), Korea ranked fifth among the Organization for Economic Co-operation and Development (OECD) member countries in 2022 for its capacity to generate economic and social value through scientific innovation. Among efforts that contributed to attaining such a competitive edge, R&D investments have been crucial for decades. The Ministry of Science and ICT (MSIT) reported that Korea was second in terms of its 2022 R&D expenditure to gross domestic product (GDP) ratio. Undoubtedly, the national R&D budget has been instrumental in supporting both professors and students, ultimately driving the nation’s growth. 

- Reasons behind the Cut

The 2024 national R&D budget released in August — two months later than usual — amounted to ₩25.9 trillion, marking a 16.6% cut from the previous year. Regarding this reduction, the government stated reasons to improve efficiency and eliminate old practices such as preferential research opportunities and excessive assignment of short-term projects. While most researchers acknowledge the possibility of their occurrence, there is the question of whether a budget deduction was the appropriate solution. In an interview with the SKT, Cho Won-kyeong, a former research professor at Sungkyunkwan University (SKKU), mentioned that although unfair practices do exist, the rigorous project selection process ensures funding for qualified researchers. Students also raised their voices of concern. Last October, the University Students’ Joint Action to Respond to the R&D Budget Reduction, composed of student councils from various universities, released a statement opposing the cut. After months of deliberation, a budget of ₩26.5 trillion was finalized last December, with a ₩600 billion increase from August, but still at a 14.7% reduction from 2023.

R&D Budget over the Years (msit.go.kr)
R&D Budget over the Years (msit.go.kr)

 

[Risks and Diversions]

- Disruptions to Current Research

The sudden decrease in the R&D budget caused significant confusion in the sphere of research. Since professors typically devise research plans with a previous budget in mind, unexpected deductions can hinder progress on ongoing projects. This deduction also threatens the livelihood of student research assistants, many of whom are non-regular workers. Although the Criteria for Using R&D Expenses for National Research and Development has set minimum pay standards, they are often not followed because of the lack of funds. Prof. Cho stated that due to the recent budget cut, some researchers had to instruct their graduate students to finish projects using previously gathered data instead of attending and conducting further work in the laboratory. In addition, the MSIT announced plans to gradually increase funding for outstanding new researchers but reduce them for the less competitive First Research in Lifetime Grant. Although this may be seen as an effort to accelerate R&D advancements, its lower selection rate can make it difficult for many new researchers to find a starting ground in the R&D industry. Some government-funded research institutes are concerned that such instability will increase the reliance on the Project Based System (PBS), where researchers secure external projects to finance research activities and wages. Should this persist, heightened competition for outside funding may lessen room for high- quality research outcomes, worsening the inefficiencies initially targeted by the budget cut.

- Dreaded Brain Drain

The reduced R&D budget has left significant implications for the future of the research sector, exacerbating the avoidance of science, technology, engineering, and mathematics (STEM) courses. Last year, Jongro Academy, a private institution specializing in college admission, reported that 63.1% of applicants accepted into the Natural Science courses at Seoul National University, Korea University, and Yonsei University withdrew their admission and expected the majority to enter medical school instead. University students have also expressed their concerns about the issue. In a discussion about this R&D budget cut held by the University Students’ Joint Action and National Assembly last November 2023, Korea Advanced Institute of Science & Technology (KAIST) and Yonsei University representatives shared that the trend of valuable talent leaking to medical fields or moving overseas could intensify. Furthermore, the budget decrease has also negatively affected those pursuing postgraduate education. According to a survey co-conducted by the Biological Research Information Center last October, 87.3% of undergraduate students considering graduate school said that the R&D budget cut would be a critical factor in their decision. This budget decrease has not only hindered students wishing to enter the research field but has also been a barrier that prevents the scientific community from reaching its full potential. 

Discussion on Responses to R&D Budget Cut (dtnews24.com)
Discussion on Responses to R&D Budget Cut (dtnews24.com)

 

[Reliability and Dialogue]

- Stability to Mitigate Disruptions

To foster a stable research environment, it is necessary to increase the transparency of the current R&D system. In the case of the Gyeonggi Province Technology Development and Regional Research Center Project Improvement Plan of 2020, the disclosure of the project evaluation system was proposed for public access regarding submission rates, evaluation comments, and scores of selected projects. Moreover, the government can strictly enforce a minimum wage for student research assistants and oversee its payment instead of the head of research. Ensuring transparency from budget allocation to wage distribution will help reduce unnecessary disruptions. Moreover, it is vital to create communication channels for researchers to express their opinions on the R&D funding system. The November 2023 discussion, co-led by the University Students’ Joint Action, helped provide a platform for students to convey their thoughts and experiences on the matter. Park Jong-jin, the chairperson of the Student Council Emergency Response Committee of Ulsan National Institute of Science and Technology (UNIST), a school that participated in the discourse, told the SKT, “The government already has connections with various institutions. As such, if necessary, they can exchange and collect opinions through them.” Incorporating perspectives gathered through consistent communication on R&D-related policies will ensure that the needs of young researchers are reflected in the grant framework. 

- Communication to Plug the Drain

To alleviate the “brain drain,” the government must rebuild students’ trust in research careers, while institutions must create an environment that respects research freedom. First, students and researchers must be able to participate in the R&D policy-making process to share their perspectives on the aversion to STEM fields and postgraduate education. For instance, the University Student Policy Monitoring Group allows participating students to share opinions and ideas regarding youth policy. If a similar program were to be operated on an R&D-specialized, nationwide scale, the government would be able to reflect the students’ concerns and regain their confidence in research field careers to prevent further “brain drain.” Another possible solution is giving researchers an avenue to choose their preferred research topics. For instance, researchers at the Max Planck Institute have the autonomy to decide their research topics; this creative freedom is cited as a critical element in their achievement of producing 20 Nobel Prize laureates. Such a space would serve as an additional element of appeal for those looking to get into the R&D sphere. A communication-focused, creativity-fostering environment like this will increase interest in research careers and positively influence Korea’s future scientific landscape.

Max Planck Institute for Biology (mpg.de)
Max Planck Institute for Biology (mpg.de)

 

Behind South Korea’s scientific advancements, there have been consistent investments made toward the R&D sector, as well as the devotion of institutions, universities, and students who depend on it to drive this progress. The recent months have shown how such a sudden change can impact the research environment. As future innovators of the country, Kingos must actively participate in discussions regarding R&D policies and programs.

 

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