Saturday, April 18, 2026

Samsung- The Empire that Grew from Selling Dried Fish to become a global tech giant


How did the South Korean government’s policy on education and research institutions directly enable Samsung’s R&D success?


  1. The "HCI" (Heavy and Chemical Industrialization) Policy: In the 70s and 80s, the government didn't just give money; they gave strategic protection. They shielded Samsung from foreign competition in the local market so the company could learn how to build electronics without being crushed by Sony or Philips early on.
  2. The Rise of KAIST: The government established the Korea Advanced Institute of Science and Technology (KAIST). This was a direct pipeline of elite engineering talent. Samsung didn't have to look abroad for researchers; the government was "manufacturing" world-class engineers locally.
  3. Reverse Engineering to R&D: The government encouraged a "Learning by Doing" model. Initially, Samsung was encouraged to dismantle foreign products (codified knowledge). As the education system matured, they transitioned to original innovation (tacit knowledge/R&D).
  4. Tax Incentives for R&D: South Korea has historically offered some of the highest R&D tax credits in the world. This turned Samsung’s "Multi-Billion Dollar Semiconductor Risk" (mentioned in the videos) from a gamble into a calculated state-supported mission.

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