Think Tanks and Good Governance: The Case of the Korea Development Institute (KDI)

Jongryn Mo & Jeong Yeon Lee

This paper introduces a set of analytical frameworks for explaining the configuration and performance of different policy research systems. Building upon these frameworks, we identify three major contributing factors to the creation of an efficient policy research system in Korea while paying particular attention to the Korea Development Institute (KDI). Those factors include: (i) a favorable policy environment; (ii) an optimal organizational arrangement; and (iii) effective incentive and discipline mechanisms. Among possible lessons from the KDI model that can have important bearings on other countries, we emphasize the importance of institutional and individual incentives. But incentive systems would not have worked without the KDI’s open and “liberal” organizational culture. Non-economic factors such as the recognition as a center of excellence have also been as important to KDI success as financial rewards. It is also important to recognize that these success factors, strong incentives, organizational culture and non-financial recognitions, do not work independently; rather, they reinforce one another.