The Korea Local Administration Review

Expanding of a local government’s research institute has a strategicalmeaning to reinvent the marginalized sectors of our economy like local industryand small-medium sized businesses through building up R&D infra-foundation.Accordingly this study has evaluated the performance of the Sancheong HerbInstitute as one of the cases which are 19 local governments’ institutesestablished by the Ministry of Knowledge & Economy. Given the results ofevaluation of the four main areas for the last five years from 2008, it showsthat institution building and R&D parts have been relatively satisfactory. On theother hand, it also shows that business supports and business-managementparts have not been relatively up to the good performance. However, thisinstitute has been relatively successful to meet the deadline for buildinghardware and software despite having very poor conditions in terms ofinstitution building as a basic research. This will act as a dynamic force inactivating the research institute for the future. In addition, it is encouraging thatthe institute achieved quite good performance beyond expectation in all detailedindicators of the R&D sector. After all this study suggests such fiverecommendations for the long-term development of the research institute onthe basis of the last five years’ merits and demerits as activating the productline through linking with the research building; rebuilding governance in and ourof the institute research and tightening up the strategical planning; promotingthe cluster based development of local industries; guarantee of the staffs’status for training elite researchers and building up a incentive system;customer satisfaction and promoting the ability of public relations.
□ Keywords: Evaluation of Performance, Local Governments’ Research Institute,Cluster, Sancheong Herb Institute, Regional Special Industry