Developing the complex system in Korea: the case study of TDX and CDMA telecom system

International Journal of Technological Learning, Innovation and Development

Volumn 1, Issue 2, 2007, Pages 204-225

  Choung, Jae Yong ^a,b   Hwang, Hye Ran ^c  

^a Korea Advanced Institute of Science and Technology (KAIST)   (South Korea)

^b GEORGETOWN UNIVERSITY   (United States)

^c Daejeon Development Institute   (South Korea)

Author keywords

CDMA; code division multiple access; complex product systems; CoPS; Korea; TDX

Indexed keywords

EID: 79953059496     PISSN: 17531942     EISSN: 17531950     Source Type: Journal    
DOI: 10.1504/ijtlid.2007.015404     Document Type: Article

References (44)

1. Choi, Y. (1996) Dynamic Techno-Management Capability: The Case of SAMSUNG Semiconductor in Korea, UK: Avebury.
2. Choung, J-Y., Hwang, H-R., Choi, J-H. and Rim, M-W. (2000) ‘Transition of latecomer firms from technology users to technology generators: Koran semiconductor firms’, World Development, Vol. 28, No. 5, pp.969–982.
3. Davies, A. and Brady, T. (2000) ‘Organisational capabilities and learning in complex product systems: towards repeatable solutions’, Research Policy, Vol. 29, Nos. 7–8.
4. ETRI (1997) 20 Years of ETRI, Daejon, Korea.
5. ETRI (1999) World First CDMA, Taejon, (Korean): ETRI.
6. ETRI (2000) ‘Development and commercialization of TDX switching systems in Korea’, Workshop for S&T in Development: Sharing Innovative Experience among Developing Countries, Taejon, (Korean): ETRI.
7. Freeman, C. and Soete, L. (1997) The Economics of Industrial Innovation, Pinter.
8. Fridlund, M. (1997) ‘Switching relations: the government development procurement of a Swedish computerised electronic telephone switching technology’, Innovation Systems and European Integration, European Commission.
9. Granstrand, O. and Sjolander, S. (1990) ‘Managing innovation in multi-technology corporations’, Research Policy, Vol. 19, pp.35–60.
10. Han, K. (1997) ‘World first commercialization CDMA technology’, Search of Best Practicies in Successful R&D Projects in Korea, Seoul, (Korean): STEPI research report series.
11. Han, K. (1999) ‘CDMA technology development in Korea’, Asia Pacific Telecommunication Forum, Taejon, Korea: ETRI.
12. Hobday, M. (1995a) ‘East-Asian latecomer firms – learning the technology of electronics’, World Development, Vol. 23, No. 7, pp.1171–1193.
13. Hobday, M. (1995b) Innovation in East Asia: The Challenge to Japan, Aldershot, England: Edward Elgar.
14. Hobday, M. (1998a) ‘Product complexity, innovation and industrial organisation’, Research Policy, Vol. 26, No. 6.
15. Hobday, M. (1998b) ‘Rational vs. soft management in complex software: lessons from flight simulation’, International Journal of Innovation Management, Vol. 2, No. 1.
16. Hobday, M. and Brady, T. (1998) ‘Rational vs soft management in complex software: lessons from flight simulation’, International Journal of Innovation Management, Vol. 2, No. 1, pp.1–43.
17. Hobday, M., Rush, H. and Bessant, J. (2004) ‘Approaching the innovation frontier in Korea: the transition phase to leadership’, Research Policy, Vol. 33, No. 10, pp.1433–1457.
18. Hobday, M., Rush, H. and Tidd, J. (2000) ‘Innovation in complex products and system’, Research Policy, Vol. 29, Nos. 7–8.
19. Kash, D. and Rycoft, R.W. (2000) ‘Patterns of innovating complex technologies: a framework for adaptive network strategies’, Research Policy, Vol. 29, Nos. 7–8.
20. Kim, L. (1997a) ‘The dynamics of Samsung’s technological learning in semiconductors’, California Management Review, Vol. 39, No. 3.
21. Kim, L. (1997b) Imitation to Innovation: The Dynamics of Korea’s Technological Learning, Boston, MA: Harvard Business School Press.
22. Lee, B-S. (1999) ‘Development of commercialization of TDX switching systems’, Asia Pacific Telecommunication Forum, Taejon, Korea: ETRI.
23. Lee, H. (2001) ‘Development of CDMA wireless communication system’, Physics and High Technology, Vol. 10, No. 6, Seoul, (Korean).
24. Lee, K. (1995) Soundless Revolution, Seoul, (Korean): Korea IT News press.
25. Mathews, J. and Cho, D-S. (1999) ‘Combinative capabilities and organizational learning in latecomer firms: the case of the Korean semiconductor industry’, Journal of World Business, Vol. 34, No. 2.
26. MIC (1988) Telecommunications in Korea, Korea (Korean): Ministry of Information and Communications.
27. Mowery, D.C. and Nelson, R.R. (Eds) (1999) Sources of industrial leadership: Studies of Seven Industries, Cambridge University Press.
28. Pfleeger, S. (2001) Software Engineering: Theory and Practice, Prentice-Hall.
29. Song, W. (1999) A Study on the Technological Innovation of Korean Mobile Telecommunication Industry: The Interaction of Technology Politics and Technological Learning, Seoul, (Korean): Policy Research Paper Series No 99–01, STEPI.
30. Swann, P. and Gill, J. (1993) Corporate Vision and Rapid Technological Change: The Evolution of Market Structure, London: Routledge.
31. Utterback, J.M. (1996) Mastering the Dynamics of Innovation, Boston: Harvard Business School Press.
32. For example, Korea takes a global market share of 42.5% in TFT (2005), 50% in PDP (2005), 20% in Mobile handset (2004).
33. See Choi (1996), Choung et al. (2000), Hobday (1995a,b), Hobday et al. (2004), Mathews and Cho (1999) and Kim (1997a,b).
34. For exiting approaches to CDMA with mid-entry strategy, see Chung and Lee (1999) and TDX with product development strategy, see Chung et al. (1998).
35. Ericsson’s product evolved as follows, beginning in the 1880s: manual switching (1880), automatics indirect control electro-mechanical (1923), cross-bar technology (1950) to Stored Program Control (SPC) in 1968.
36. The memo call project was implemented at KIST during 1972–1973. Despite it turning out to be an unsuccessful project, due to lack of reliability and quality control, the GTE, ironically, acknowledged the worth of the technology and funded R&D and KIST so that they could develop it further. Following the successful development of the technology (KIST 500), GTE offered it to KIST for commercialisation. Later, in 1977, GTE and Samsung set up a joint venture company called Samsung GTE to produce the GTE 500 series.
37. Waterfall model sequence: requirements, Design, code, test, integrate, maintain; V-Model sequences: system requirements, software requirements, preliminary design, detained design, code and debug, unit test, components test, SW integration, acceptance test, system integration (Pfleeger, 2001).
38. Interview with ETRI engineer.
39. The Development Cooperation Fund (EDCF), which was established in 1987 to promote economic cooperation with developing countries, assisted in the export of TDX to CIS, Eastern Europe, The Philippines, China, Syria and Uganda, to mention a few of the 23 countries involved, supplying 3.7 million TDX lines during the period 1991–1998 (ETRI, 2000).
40. They organised short term courses to assimilate basic technology from Qualcomm and also three-month course by inviting Korean scholars from the US who were experts in CDMA technologies in 1992. This short course contributed to understanding the CDMA technologies. In addition, researchers dispatched to the US, verified that the capacity of targeted subscribers could be accommodated by delicate power control, and three months later, such a development was announced at the Cellular Telecommunication Industry Association (CITA) conference.
41. During the process of development, Qualcomm was initially permitted to use 8 core patents (ETRI, 1999). During the CDMA development period, ETRI engineers visited the company monthly and 20 engineers stayed at Qualcomm during systems development.
42. ETRI began to design the CDMA system by using TDX switching systems, but Qualcomm suggested their own system design, which used an analogue ATM switch. However, it proved impossible to maintain reliability and cost efficiency, using Qualcomm’s suggestion. Conflicts over philosophy of system design, development target schedule and royalty issues between ETRI and Qualcomm engendered uncomfortable relations and later the relationship between declined. Segmentation of licensing policies with respect to fees for HW Roving tests, source code and licensing fees has further aggravated the relationship.
43. On one side, it is the characteristic of CoPS that already set-up standardisation is hardly shifted to another standard. Because the users face the incurred sunk costs by changing technology or products, which have long-term operating cycles.
44. Even though various stakeholders bring up tenacious problems in the standardisation phase, the unified standard strategy made the mobile service providers acquire the CDMA-based equipments through unifying national standard into CDMA technique (Song, 1999).