POSCO: Win-win partnerships with SMEs

Challenge

Small and medium enterprise (SME) technical suppliers do not develop enough advanced technology due to commercial restrictions. At times, this leaves POSCO with a limited or inconsistent supply of technology.

Action

In September 2006, POSCO launched a Techno Partnership Support Team for SMEs togehter with Pohang University of Science and Technology (www.postech.ac.kr/eng/), the Research Institute of Industrial Science and Technology (www.rist.re.kr) and Pohang Techno Park.

Since June 2006, POSCO has participated in a product development scheme subsidised by the Small and Medium Business Administration (SMBA), committing to buy technology that SMEs develop for the company. Taking one step further, in December 2008, POSCO agreed to create a joint R&D fund, together with the SMBA, of 10 billion KRW (US$8 million).

POSCO’s technology transfer support includes:

  • Information and training on technology transfer and patents, from POSCO’s SME patent consulting centre and regional Pohang and Gwangyang centres
  • Waiver of patent fees, utility model rights and design rights for products produced for the company
  • Payment of all patenting costs and fees for joint patents with SMEs.

Outcome

The Techno Support team has advised 56 companies since the end of 2008. Under the SMBA scheme, 48 products were developed for POSCO from 2006 to 2008.

POSCO now has a better supply of equipment, which improves productivity. The SMEs have increased their technological capacities and developed stable revenue streams.

Last updated: June 2010

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