# Efficiency of Public R&D Management Agency and Its Improvement toward Open Innovation
## 3 Analysis of Regulatory System of Planning and Evaluation Cost
### Current Status and Problems of Planning and Evaluation Cost
#### 3.1.4 Not Enough Budget for Playing R&D Management Agencies Roles Fully  
Through this survey, it was found difficult to predict the long-term planning, evaluation, and performance management because the planning and evaluation cost is highly variable depending on the change of the total project cost.  
According to Table 6 as of 2020, 69.4% of planning and evaluation costs are financed from project evaluation expenses in the form of commissions within sub-projects. Accordingly, it is found that the planning and evaluation costs of R&D management agencies are strongly interlinked with the project scale in a year.  
Meanwhile, even though the budget for major R&D projects managed by R&D management agencies increased between 2016 and 2020, there were some cases in which the planning and evaluation costs in the form of commissions within sub-projects actually decreased. For example, although the management project budget of the KIAT increased an average of 4.4% per year, the planning and evaluation cost in the form of commission within sub-projects decreased by 3.5%. In addition, although the management project budget of the KHIDI increased an average of 3.0% per year, the plan and evaluation cost in the form of commission within sub-projects decreased by 5.2%.  
\begin{table}
\begin{tabular}{c c c c c} \hline \hline \multirow{2}{*}{**Grants**} & **Planning and Evaluation Cost in the Form of** & **Planning and Evaluation Cost in the Form of** & **Others \({}^{*}\)** & **Total** \\ \cline{2-5}  & **Cost Project** & **Commissions within Sub-Projects** & & \\ \hline
61,586 & 71,292 & 325,198 & 10,342 & 468,418 \\ (13.2\%) & (15.2\%) & (69.4\%) & (2.2\%) & (100.0\%) \\ \hline \hline \end{tabular}  
\({}^{*}\)Outsourcing, carryover, subsidy, etc.  
\end{table}
Table 6: Financial structure of planning and evaluation cost (2020). (Unit: KRW million, %).  
\begin{table}
\begin{tabular}{c c c c} \hline \hline \multirow{2}{*}{**Ministry**} & \multirow{2}{*}{**R& **\&D Management Agency**} & \multicolumn{2}{c}{**The Way the**} \\ \cline{3-4}  & & **Planning and Evaluation Cost is Determined** \\ \cline{3-4}  & & **Consultation** & **Applicable Regulation** \\ \hline \hline \multirow{2}{*}{MSIT} & NRF & O & \\ \cline{2-4}  & IITP & O & \\ \hline \multirow{2}{*}{MOTIE} & KEIT & O & \\ \cline{2-4}  & KIAT & O & \\ \cline{2-4}  & KETP & O & \\ \hline \multirow{2}{*}{MSS} & TIPA & O & \\ \hline MOF & KIMST & O & O \\ \hline MOLIT & KAIA & O & O \\ \hline MOHW & KHIDI & O & \\ \hline \multirow{2}{*}{MCST} & KOCCA & O & \\ \cline{2-4}  & Korea Copyright Commission & O & \\ \cline{2-4}  & Korea Sports Promotion Foundation & O & \\ \hline MAFRA & IPET & O & O \\ \hline Korea Forest Service & KOFPI & O & \\ \hline ME & KEITI & O & \\ \hline Korea Meteorological & & & \\ Administration & Korea Meteorological Institute & O & O \\ \hline NSSC & Korea Foundation of Nuclear Safety & O & O \\ \hline Sum & & 17 EA & 5 EA \\ \hline \hline \end{tabular}
\end{table}
Table 5: Budgeting method for major R&D projects (2020).  
* Person in charge at \(\bigtriangleup\bigtriangleup\bigtriangleup\bigtriangleup\bigtriangleup\) Agency: Due to the unstable financial structure since only the planning and evaluation cost is available only within sub-projects, there is a limit in accumulating professional management capabilities due to the use of non-regular workers when additional manpower is needed for project expansion.  
(Interview with R&D management agencies in April, 2020)  
In addition, the above interview results point out the instability of the planning and evaluation cost.