InnovationPolicyLearningfromKorea:TheCaseofMonitoringandEvaluation(M&E) PublicDisclosureAuthorized PublicDisclosureAuthorized PublicDisclosureAuthorized PublicDisclosureAuthorized ©2024InternationalBankforReconstructionandDevelopment/TheWorldBank1818HStreetNW WashingtonDC20433 Telephone:202-473-1000Internet:www.worldbank.org ThisworkisaproductofthestaffofTheWorldBankwithexternalcontributions.Thefindings,interpretations,andconclusionsexpressedinthisworkdonotnecessarilyreflecttheviewsofTheWorldBank,itsBoardofExecutiveDirectors,orthegovernmentstheyrepresent. TheWorldBankdoesnotguaranteetheaccuracy,completeness,orcurrencyofthedataincludedinthisworkanddoesnotassumeresponsibilityforanyerrors,omissions,ordiscrepanciesintheinformation,orliabilitywithrespecttotheuseoforfailuretousetheinformation,methods,processes,orconclusionssetforth.Theboundaries,colors,denominations,andotherinformationshownonanymapinthisworkdonotimplyanyjudgmentonthepartofTheWorldBankconcerningthelegalstatusofanyterritoryortheendorsementoracceptanceofsuchboundaries. NothinghereinshallconstituteorbeconstruedorconsideredtobealimitationuponorwaiveroftheprivilegesandimmunitiesofTheWorldBank,allofwhicharespecificallyreserved. RightsandPermissions Thematerialinthisworkissubjecttocopyright.BecauseTheWorldBankencouragesdisseminationofitsknowledge,thisworkmaybereproduced,inwholeorinpart,fornon-commercialpurposesaslongasfullattributiontothisworkisgiven. Anyqueriesonrightsandlicenses,includingsubsidiaryrights,shouldbeaddressedtoWorldBankPublications,TheWorldBankGroup,1818HStreetNW,Washington,DC20433,USA;fax:202-522-2625;e-mail:pubrights@worldbank.org. WorldBank Finance,CompetitivenessandInnovationGlobalPractice InnovationPolicyLearningfromKorea:theCaseofMonitoringandEvaluation(M&E) maY2024 Acknowledgments ThisdocumentwaspreparedbyateamledbyYanchaoLi(PrivateSectorSpecialist)andJaimeFrias(SeniorEconomist/TaskTeamLeader),whichcomprisedKyeyoungShin(Consultant)andJuanRogers(Consultant)fromtheFinance,Competitiveness,andInnovationGlobalPracticeoftheWorldBank(WB).TheauthorsaregratefulforusefulcommentsfromWBpeersXavierCiera(SeniorEconomist),AnwarAridi(SeniorPrivateSectorSpecialist),JooSuebLee(SeniorEconomist),JustinHill(SeniorPrivateSectorSpecialist),YehiaEldozdar(Monitoring&EvaluationSpecialist)andJiyoungChoi(SeniorEconomist). TheteamappreciatestheguidanceofCecileNiang(PracticeManager,FCI),ZaferMustafaoglu(PracticeManager,FCI)andDenisMedvedev(Director,IFC).Theteamaregratefulfortheinsightsofferedbyleadingexpertsinthesubjectarea,includingDr.Jae-JinKim(PresidentoftheKoreaInstituteofPublicFinance,KIPF),Dr.Chi-UngSong(SeniorFellowoftheScienceandTechnologyPolicyInstitute,STEPI),ProfessorDr.JakobEdler(ExecutiveDirector,FraunhoferInstituteforSystemsandInnovationResearchISI/ProfessorofInnovationPolicy,ManchesterInstituteofInnovationResearch),andMichaelKeenan(SeniorPolicyAnalyst,OrganizationforEconomicCo-operationandDevelopment,OECD). TheteambenefitedfromfeedbacktothecasethroughpolicydiscussionswiththeDepartmentofTradeandIndustryofthePhilippines,theNationalEconomicDevelopmentAuthorityofthePhilippines,theDepartmentofScienceandTechnologyofthePhilippines,theMinistryofNationalDevelopmentPlanningoftheRepublicofIndonesia,andtheMinistryofScienceandTechnologyofVietNam. TheteamthanksArnelynAbdon(Consultant),DaeinKang(Consultant),GraceMorella(Consultant),KristianaTorres(Assistant),AdelaAntic(Consultant)andKibumKim(PrivateSectorSpecialist)forfacilitatingthepolicydiscussionswithexpertsandgovernmentrepresentativesfromthePhilippines,Indonesia,andVietNam.TheauthorsarealsogratefultoMarcyGessel(Editor)andZoeEscobar(Assistant)foreditorialsupport. ThiscasestudywassupportedbythenationalgovernmentoftheRepublicofKoreathroughtheKorea-WorldBankPartnershipFacility(KWPF). evaluation(m&e)4 Contents Acknowledgments4 AbbreviationsandAcronyms6 ExecutiveSummary7 01.Introduction10 02.InternationalGoodPracticeinMonitoringandEvaluationofInnovationPolicy21 03.M&EofinnovationPolicyinKorea32 04.LessonsandTakeawaysforDevelopingCountries59 References69 Appendices75 evaluation(m&e)5 AbbreviationsandAcronyms ANIIAgenciaNacionaldeInvestigacióneInnovación(NationalInnovationAgencyofUruguay) ICTInformationandcommunicationtechnology ISAInnovationandScienceAustralia KDIKoreaDevelopmentInstitute KIPFKoreaInstituteofPublicFinance KISTEPKoreaInstituteofScienceandTechnologyEvaluationandPlanning KISTIKoreaInstituteofScienceandTechnologyInformation M&EMonitoringandEvaluation MOEFMinistryofEconomyandFinanceoftheRepublicofKoreaMOSFMinistryofStrategyandFinanceoftheRepublicofKoreaMSITMinistryofScienceandICToftheRepublicofKoreaNABOKoreanNationalAssemblyBudgetOffice NTISNationalScienceandTechnologyInformationService PACSTPresidentialAdvisoryCouncilonScienceandTechnologyoftheRepublicofKorea PARTProgramAssessmentRatingTool PERPolicyEffectivenessReview R&DResearchandDevelopment RCTRandomizedControlledTrial RDTIResearchandDevelopment(R&D)TaxIncentive STIScience,Technology,andInnovation TAFTIETheAssociationforTechnologyImplementationi