Ministry of Science and ICT, broke through 1000 INNOPOLIS Research-based Spin-off Companies!

- The 1000th INNOPOLIS Research-based Spin-off Companies have been established in 15 years since the first Kolmar BNH in 2006.

- Total sales of about 739.4 billion won, 3,910 jobs created, and 69.8% survived five years after start-up (as of 2019)

□ Ministry of Science and ICT (Minister Choi Ki-Young, hereinafter "MSIT") and the Korea Innovation Foundation (President, Yang Sung-Kwang, hereinafter "Foundation") announced that the number of Research-based Spin-off Companies, the representative models of public research and commercialization, has surpassed 1,000.

 

ㅇ "Research-based Spin-off Company" is a commercialization model in which public research institutions that actively participate in the process of technology commercialization, as a responsible shareholder beyond technology supply contractors, established within INNOPOLIS to commercialize the research results of public research institutes*.

* Universities, Science and Technology-funded Research Institutes, Public corporations, Research-oriented hospitals, etc.

 

ㅇ After Kolmar BNH Co., Ltd. was established as the first Research based spin-off company in 2006, the era of 1000 Research-based spin-off companies has been reached in 15 years.

Division	`06~`13	`14	`15	`16	`17	`18	`19	`20.8
(Cumulative) number of establishments	46	89	160	339	520	704	891	1001

 

□ Through the development of excellent technology and competitive products, Research-based spin-off companies have contributed to job creation and innovation growth, with total sales of 739.4 billion won and employment of 3,910 people as of 19 years, and the average growth rate over the past five years ("15~'19) respectively, showing high growth rates.

* Research-based Spin-off Company's five-year survival rate (75.0%) is about 2.6 times higher than that of typical enterprises (28.5%), which is effective in early survival and growth

 

ㅇ In addition, after Kolmar BNH was first listed on KOSDAQ in 2015, Sugentech (2019) and Syntekabio (2019) were listed one after another, and three* Research- based Spin-off Companies were preparing to be listed.

* Micobiomed (Scheduled for 2020), Jinsystem (Scheduled for 2021), Maum AI (Scheduled for 2021)

 

ㅇ It took 7.6 years on average from start-up to IPO, which is about 1.7 times faster than the domestic average (13 years), which approaches to the world average of 6.3 years, showing excellent examples of the virtuous cycle structure of the venture ecosystem.

* Source: Establishing a virtuous circle of the venture industry, McKinsey & Co. (2015), Capital Market Research Institute (2017)

 

□ MSIT and the Korea Innovation Foundation held a commemorative event at the ICC Hotel in Daejeon on September 2 (Wednesday) to celebrate the achievement of 1000 Research-based Spin-off Companies and share its achievements and future vision.

* The event was held with a limited number of attendees (50 people or less) per the second stage of social distancing due to COVID-19, and the entire event was broadcasted live through YouTube.

 

ㅇ First of all, starting with a congratulatory video speech by the Prime Minister, The ceremony was held to award the certificates for 1,000th Research-based Spin-off Companies and commendations for meritorious people, and the event was held in the order of signing an investment agreement of senior companies to create a dedicated fund, an investment attraction agreement ceremony, and a panel talk to share successful Spin-off cases.

 

□ With the launch of the 1,000th Spin-off Company, MSIT has announced the "New Growth Strategy Vision for Research-based Spin-off Companies" to take a new leap forward to lead world-class high-tech and new industries beyond quantitative growth over the past 15 years.

* Easing the equity ratio of the invested institutions (currently 10-20% to 10%), readjusting the EXIT system of Research-based Spin-off Company, exempting government technology fees when carrying out R&BD projects, etc.

 

ㅇ MSIT has announced that it will prepare a "New Growth Strategy for Research Institute Spin-off Company" that will shape the vision through collecting opinions and present them to the "INNOPOLIS Committee."