Open Access

Markus Pudelko, Jörg BüechlORCiD

• This article analyzes the Korean innovation system and presents suggestions for its further improvement on the basis of three other country models, that of the U.S., Japan and Germany. We suggest that innovation systems are embedded in their respective managerial, economic, socio-political, and ultimately cultural context and that those contextual factors exert a significant influence on a national innovation system. Furthermore, we propose that the influence of those contextual factors result in innovation systems that are either more transformational or incremental in nature. We conclude that Korea has (like Japan) due to its societal context a particular strength in incremental innovations but will increasingly need to build up its ability to generate also transformational innovations (a particular strength of the US model). Due to distinct differences in the societal context, it might be difficult, however, for Korea to follow the U.S. model. We suggest, therefore, that Korea might find some valuable lessons in the German innovation system, particularly regarding small and medium enterprises.