APEC Project Completion Report

SECTION A: Project profile

Project number & title: / CTI 04 2015A– Promoting SMEs’ Integration into Global Value Chains in IT/Electronics
Project time period: / March 2015 to December 2015 / Date submitted: / 2015-12-18
Committee / WG / Fora: / CTI
Project Overseer Name / Organization / Economy: / Jin Kim, Ministry of Trade, Industry and Energy, Korea

SECTION B: Project report and reflection

Project description: In 3-4 sentences, please describe the project and its main objectives.

The project was designed to raise the understanding and awareness of Global Value Chain (GVCs) in IT/Electronics industry. Activities of the project include sectoralPPP Forum,GVC Workshop, and aprogress report. By disseminating best practices and policy recommendations brought up from the activities, this project seeks to contribute to facilitate SMEs’ integration into GVC which can be directed to benefitingboth SMEs and MNCs with a goal of supporting sustainable and inclusive economic growth and prosperity in the Asia-Pacific region.

Meeting objectives: Describe how the project met each of its proposed objectives. Please outline any challenges you may have encountered in delivering the activity.

This project is a direct response to the objective of SME development including access to regional and global market and the other is Activities outlined in the GVCs Blueprint. The main objectives of the meetings are:

1)To support implementation of the GVCs Blueprint to increase the knowledge of GVCs among the participants and to create a network in which GVCs development can be actively formulated.

2)To facilitate SMEs’ integration into GVCs in major industries by building their capacity for sustainable and inclusive growth through forums and workshops specifically responding to needs of regional SMEs.

3)To develop recommendations and build support for the promotion of GVCs by providing and sharing related information through progress reports focusing on APEC's shared goal of promoting ‘balanced and inclusive growth’ of SMEs through GVC participation.

Specific objectives listed in the project proposal have been fully met by (1) collecting and sharinginputs as well as creating networks among the SMEs and MNCs for partnership through operation of four times of sectoral PPP Forum (May 2015, Korea), (2) holding GVC Workshop to better understand GVCs in IT/Electronics sector and build the capacity of the SMEs participating in GVC by (September 2015, Korea), and (3) sharing outcomes and results of the PPP Forum and GVC Workshop by developing a progress report.

Evaluation: Describe the process undertaken to evaluate the project upon completion. (e.g. evaluation through participant surveys, peer reviews of outputs, assessments against indicators, statistics demonstrating use of outputs etc.). Provide analysis of results of evaluations conducted and where possible include information on impacts on gender. Evaluation data needs to be included as an appendix.

To ensure comprehensive evaluation of the progress and achievement of the project, a participant survey has performed using a set of direct and indirect indicators as following.

Output indicators:Describe the main project outputs below. This may include workshops, tools, research papers, reports, recommendations, best practices, action plans.

The output includes PPP Forum, Workshop and Progress Report which will identify priority issues and appropriate policy recommendations to facilitate SMEs into GVCs. Detailed outputs are as described in the following table. The table shows quantitative outputs of the project have been delivered as planned in overall including the number of events, participants, attending economies, etc.

Indicators
(Edit or Insert rows as needed) / # planned / # actual / Details or notes
# workshops / events / 5 / 5 / FourPPP Forum and one GVC workshop
# participants (M/F) / 163 / 163 / See in Appendix 1
# economies attending / 11+ / 10 / Korea, China, Chile, Indonesia, Mexico, Peru,
Vietnam, Philippines, Chinese Taipei, Thailand
# speakers engaged / 6 / 6 / For GVC Workshop
# other organizations engaged / 3 / 3 / Non-APEC participating organizations includingInternational Trade Center, OECD, and International Council for Small Business
# publications distributed / 1 / 1 / A progress report will be submitted in Jan 2016
# recommendations agreed on / n/a
Other: / n/a

In the four PPP forum, four different sub-sectors within IT/Electronics industry GVC have been separately covered to present to enhance understanding of the global value chains and provide ideas for policy improvement. Moreover, by providing a clearer view of perspectives concerning global value chains as discussed in each PPP forum, the GVC workshop provided a better understanding of challenges and shortcomings in SMEs participation of GVCs.Theworkshop was open to a wider range of participants from both public and private sectors in APEC economies with the purpose of sharing issues and case studies raised by the PPP forum and perspectives of some key APEC economies. The workshop sought to raise greater awareness of participants on SMEs’ participation of GVCs.

The progress report brought together the results of the PPP forum as well as the workshop to identify the necessary steps and developments in penetrating the SMEs participation of GVCs.The report mainly aimed to benefit both the public and private sector. As for SMEs, the report will provide practical ways and strategies to overcome challenges they may face in participating in GVCs. In the progress report, a set of best practice caseswere identified to examine broader and innovative ways of approaching GVCs but also those who are less familiar with GVCs will have a better understanding of various elements and issues related to the concept of SMEs’ integration into GVCs.To benefit the policy makers of APEC economies in practical decisionmaking on GVC-related issues, the progress report also provided actionable recommendations and implications to modify or establish new approaches in SME and GVC-related policies.

Outcomes: Describe any specific medium-term changes to policy, processes or behaviour that can be attributed to result from this activity. Please include details on:

What indicators were used to measure medium-term impact? (Example indicators: type/number of policies/ regulations/processes changed, % of businesses conforming to new standards, change in sector’s commercial activity, # individual action plans developed, # agencies using resource or tools etc.)
Monitoring plans in place and proposed indicators to measure impacts, including any impacts on gender. Please summarise relevant information.

The activities implemented under this project can be attributed to bring potential medium-term impacts that can lead to practical changes such as improved government policy in APEC economies to facilitate SMEs’ participation in GVCs. This is partly enabled by the project’s contribution to enhance awareness and understanding of policy makers and businesses on global value chains in IT/Electronics industry. Overall, the projectwill change the way participants perceive GVCs and the way they implement and execute strategies and policies related to GVCs. The impact can be assessed by number of action plans that individually or collectively developed by any APEC economies in response to the policy recommendations or other information provided by the project.

Monitoring mechanism and indicators for measuring the medium-term impacts can be proposed and developed by further initiatives under the priority areas of APEC, mainly MSME globalization and modernization. The ongoing works to develop an APEC MSME Globalization Index or APEC TiVA Database are expected to provide effective ways for monitoring and measurement of the project’s midterm impacts.

Participants (compulsory for events): Must be gender-aggregated. May be included as appendix.

Economy
(Insert rows as needed) / # male / # female / Details
Korea / 81 / 62 / See appendix 1
China / 2 / 2
Vietnam / 2
Mexico / 3
Chile / 2
Indonesia / 1
Peru / 1
Thailand / 1
Philippines / 1 / 1
Chinese Taipei / 1 / 1
Other / 2
Total / 97 / 66

Comments: What was the approach undertaken for participant nomination/selection and targeting? Please provide details. What follow-up actions are expected? How will participants/beneficiaries continue to be engaged and supported to progress this work?

Each economy was invited to nominate participants to discuss their own opinion. Experts and speakers were chosen by their work experiences or research backgroundpertinent to the subject matter. General information including background of the project, draft agenda, and travel information about the workshop and PPP forum was distributed to help nomination of the participants. Gender representativeness was also considered for nomination.

Key findings: Describe 1-3 examples of key findings, challenges or success stories arising from the project (e.g. research or case studies results, policy recommendations, roadblocks to progress on an issue, impacts on gender).

The following examples are presented as a part of key findings and lessons learnt from the GVC workshop under the work plan of the project.

In the key note presentation titled “The Importance of SMEs’ Participation in the Global IT/Electronics Value Chain in APEC and Economies Worldwide”, it was noted about Korea that the economy has successfully globalized itself in export-led expansion. However, many evidence and analysis suggest there are still greater growth potential for the economy and SMEs when strategies to facilitate SMEs participation in global value chains by increasing foreign direct investment share.

(Ki-Chan Kim, President, International Council for Small Business)

SMEs face a wide range of issues for their decision making in integration into global value chains. They are required to addressing domestic supply issues by sourcing them abroad, in developing economies, subcontracting low or medium-value work to global suppliers to focus on value addition, accessing new growth markets in developing economies and contributing to economic and social development in the economies. It is recommended for SMEs when optimize location to utilize World Bank Location Readiness Index: DIY Supplier Analysis which can assist SMEs’ decision making by providing detailed information such as cost, infrastructure, business andliving environment, country risk, industry maturity.

(Dr. Anders Aeroe, Director, Division of Market Development, International Trade Center)

A presentation titled “Strategic Positioning of SMEs in GVC - A Case of Chinese Market “ identified current status in Chinese SMEs’ global value chain participation and proposed strategic points for improving infrastructure by location factors of GVC to provide better foundation for GVC development, promoting intermediate and advanced technology industries’ creative activities by protecting intellectual property, necessary to form a union between manufacturing industry and MNCs to make optimized industrial clusters. (Zhan Xi, Guanzhou University, China)

Next steps:Describe any planned follow-up steps or projects, such as workshops, post-activity evaluations, or research to assess the impact of this activity. How will the indicators from Question 5 be tracked? How will this activity inform any future APEC activities?

The PO will ensure the sustainability of the project with a different set of follow-up activities such as continuation of holding the PPP Forum and utilization dissemination of the progress report. Keeping the PPP Forum will provide for valuable experiences and lessons to both the private sector and government sector helping them develop long-term policy solutions. The progress report, being an integratedoutput of the PPP Forum and GVC Workshop, will be made available for application in other industries and sectors as well. Specifically, the progress report will be developed further and incorporated into the final synthesizing report of the Phase 2 in 2016. The final comprehensive report will incorporate all the outputs from five GVC sectors such as automotives, textile, healthcare and agribusiness.Phase 2 will focus on how to effectively integrate progresses made in the five sectoral GVC work stream. While addressing key problems in each of the sector GVC, Phase 2 will also focus on cross-cutting issues policy recommendations with general applicability. In Phase 2, it will be important to bring different types of cases with diverse backgrounds that will benefit all the APEC economies including developing economies.

Feedback for the Secretariat: Do you have suggestions for more effective support by APEC fora or the Secretariat? Any assessment of consultants, experts or other stakeholders to share? The Secretariat examines feedback trends to identify ways to improve our systems.

The APECSecretariat has been quite helpful and informative during the preparation and implementation of the project and they responded to questions and emails promptly. Their guidance on preparation of materials and templates were also useful.

SECTION C: Budget

Attach a detailed breakdown of the APEC- provided project budget, including:

Planned costs: (using most recently approved budget figures)$95,500
Actual expenditures
Variance notes: An explanation of any budget line under- or over-spent by 20% or more.

The total amount of APEC funding spent than originally planned. Rather, the amount of self-funding expenditure increased after rearranging of the overall budget planning. Some of the speakers planned to be provided with an honorarium from APEC funding source were willing to deliver their lecture/session for free. Cost-saving was also possible in travel expenditure due to participants from some of the travel-eligible economies. Some participants adjusted their airfare lower than the originalbudgeting.

SECTION D: Appendices

Please attach the following documentation to the report as required. Note that the participant contact list is a mandatory requirement for all Project Completion Reports.

 / Appendices / Notes
 / Participant contact list: contact info, gender, job titles (mandatory) / Appendix 1
 / Experts / consultants list: contact info, job titles, roles, gender / Appendix 1
 / Event Agenda / Appendix 2
 / Reports, websites or resources created: links or soft copies / To be submitted Jan 2016
 / Post activity survey or other evaluation data (raw and/or aggregated) / Appendix 3
Other information or resources
FOR APEC SECRETARIAT USE ONLYAPEC comments: Were APEC project guidelines followed? Could the project have been managed more effectively or easily by the PO?

Appendix 1

Speakers and Participants Info List
Project No.
Name of Symposium
Date
Venue city & Economy / : CTI 04/15A
: Promoting SMEs’ Integration into Global Value Chains in IT/Electronics
: 2015-05-08(1st PPP Forum), 201506-02(2nd PPP Forum), 2015-07-03(3rd PPP Forum), 2015-08-20(4th PPP Forum), 2015-09-24(GVC Workshop)
: Seoul, Korea
Classification / Name / Gender / Economy / Organization / Designation / Email/Phone
Discussant(Forum1) / Yong-suk Lee / M / Korea / AT&C / Director / 010-2925-2344
Discussant(Forum1) / Jin-pyo Hong / M / Korea / Hi-K Telecom / Representative /
Discussant(Forum1) / Sung-ryong Ahn / M / Korea / HiTec / Representative / 010-6878-1379
031-371-9400
Discussant(Forum1) / Woo-sung Lee / M / Korea / STEPI / Head, Global Policy Research Center / 044-287-2121
010-9068-2803
Discussant(Forum1) / Joonho Lee / M / Korea / KOSBI / Senior Researcher /
Discussant(Forum1) / Hong-suk Kim / M / Korea / INNOBIZ Association / Head, Strategy Department /
Discussant(Forum1) / Hae-sik Jeong / M / Korea / NIPA / Chief, Technology of Information and Telecommunictaion Center / 042-612-8214
Discussant(Forum1) / Ki-Chan Kim / M / Korea / Catholic University of Korea, / Professor /
Discussant(Forum1) / Joonkoo Lee / M / Korea / Hanyang University / Professor /
Discussant(Forum1) / Gye-soo Lee / M / Korea / Convergence Policy Research Center For Future Internet / Head of the Department /
Discussant(Forum2) / Kyeong-ho Lee / M / Korea / East Mob / Co-Founder / ,
Discussant(Forum2) / Ki-hong Jeong / M / Korea / Wemade Entertainment / Deputy Head, Strategy Department /
Discussant(Forum2) / Hyong-joo Lee / M / Korea / INICIS / Strategy Department / ,

Discussant(Forum2) / Hong-ryeol Kang / M / Korea / KISDI / Senior Researcher /
Discussant(Forum2) / Eun-hee Ji / F / Korea / SPRI / Senior Researcher /
Discussant(Forum2) / Kyeong Lee / M / Korea / KISED / Head, Global Startup&Enterpreneur Team
Discussant(Forum2) / Bong-Kyu Lee / M / Korea / Yonsei University / Professor /
Discussant(Forum2) / Kwang-ho Park / M / Korea / Hanyang University / Professor /
Discussant(Forum2) / Joon-soo Yoon / M / Korea / Hanyang University / Professor /
Discussant(Forum3) / Sung-sik Hwang / M / Korea / SKC Solmics / Chief Researcher / 010-9077-8154
Discussant(Forum3) / Jung-sik Woo / M / Korea / Wonik IPS / Director / 010-4860-6255
Discussant(Forum3) / Jong-woo Lee / M / Korea / Global Zeus / Representative /
Discussant(Forum3) / Ki-hyeon Ahn / M / Korea / KSIA / Director /
Discussant(Forum3) / Sung-soo Han / M / Korea / ETRI / Director, Indutrial Strategy Team /
Discussant(Forum3) / Yong-ho Song / M / Korea / Hanyang University / Professor /
Discussant(Forum3) / Jong-il Kim / M / Korea / Dongguk University / Professor /
Discussant(Forum3) / Hye-jung Hyon / F / Korea / Kyung-HeeUniversity / Professor /
Discussant(Forum3) / Dong-yoon Oh / M / Korea / Dong-ah University / Professor /
Discussant(Forum3) / Bong-Goul Jeon / M / Korea / University Of Seoul / Professor
Discussant(Forum4) / Yang-hee Park / M / Korea / Samsung Electronics / Section Chief, Home Appliances /
Discussant(Forum4) / Jae-Kwan Jeong / M / Korea / KEA / Head, Electronics Industrial Policy Department /
Discussant(Forum4) / Hyun-jeongKim / F / Korea / KASHI / Section Chief /
Discussant(Forum4) / Kyeong-sook Lee / F / Korea / KIET / Researcher /
Discussant(Forum4) / Myeong-ho Choi / M / Korea / KT Economics&Management Research Institute / Researcher /
Discussant(Forum4) / Beom-suk Ko / M / Korea / Dongyang Mirae University / Professor /
Discussant(Forum4) / Yong-wook Jun / M / Korea / Sejong University / Vice-president /
Discussant(Forum4) / Ju-kwon Kim / M / Korea / Konkuk University / Professor /
Speaker(Workshop) / Nguyen Viet Khoi / M / Viet Nam / Vietnam National University / Professor /
Speaker(Workshop) / Zhanxi / F / China / Guangzhou University of China / Professor /
Speaker(Workshop) / Seunggun Cha / M / Korea / ZEUS / Deputy head of department /
Speaker(Workshop) / Anders Aeroe / M / Swiss / International Trade Center / Director /
Expert(Workshop) / Keijian Gu / M / China / Renmin University of China / Professor /
Expert(Workshop) / Oscar F. Contreras / M / Mexico / El Colegio de la Frontera Norte in Tijuana / Professor /
Expert(Workshop) / Norihko Yamano / M / OECD / OECD / Administrator /
Moderator(Workshop) / Park TaeHo / M / Korea / Seoul National University / Professor /
Moderator(Workshop) / YoungHan Kim / M / Korea / SungKyunKwan University / Professor /
Participant(Workshop) / José Antonio Yanes Azoños / M / Mexico / The General Coordination
Of Planning, Evaluation and Following ,National Institute of the Entrepreneur / Adviser /