Korea has emerged as the world’s eighth-largest trader, mainly on the back of improvement in its manufacturers’ competitiveness. In parallel with its rise in global commerce, the country has also increased investment in research and development. Korea’s R&D spending rose by an annual average rate of 11.4 percent over the five years from 2007. The ratio of R&D investment to gross domestic product has grown to 4.3 percent, the second highest in the world.

But a report released by a local research institute this week showed Korea still remained far from establishing itself as a leader in advanced technology, which is critical to building a creative economy as pledged by policymakers of President Park Geun-hye’s administration.

According to figures from the Institute for International Trade, Korea recorded the largest amount of technology trade deficit among the 34-member Organization for Economic Cooperation and Development in 2011. Its technology exports stood at $4 billion, compared with $9.9 billion in technology imports.

The deficit means Korean companies pay far more in royalties for foreign patent rights than they receive in fees for the use of their original technologies. With the world’s top industrial technology at the perfect score of 100, Korea’s technological level stands at 84.7, according to a recent report by an international consulting firm. In particular, the technology of small or medium-sized enterprises has remained at about 75 percent since the mid-2000s. This is in contrast with Korea’s big surplus in goods trade, which amounted to $31.2 billion in 2011, ranking the fourth in the OECD.

Under these conditions, an increase in high-tech exports translates into rises in royalty payments to foreign companies. The U.S. reaped the largest surplus of $35.8 billion in technology trade in 2011, followed by Japan with $24.7 billion, the U.K. with $22 billion and the Netherlands at $10.6 billion.

Measures should be taken to raise the efficiency and profitability of R&D spending. It may be necessary to focus support on fields that would bring about tangible results.

A long-term strategy should be drawn up and carried out in a consistent manner to avoid overlapping investments and ensure effective cooperation with foreign partners. Efforts need to be strengthened to help build a cooperative network between large companies and SMEs.