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The Korea Institute of Science and Technology (KIST) was established by the aid of the US in 1966. By examining the early history of KIST, the first government-funded research institute (GRI), I analyze the role of KIST in bridging the technol-ogy gap in Korea. KIST assisted the industry in bridging the technology gap through diverse methods, including development of new technology, assistance of technology transfer, and manpower transfer. Through the 1970s, the Korean gov-ernment, encouraged by the initial success of KIST, established over a dozen research institutes in each industrial field, modeled after KIST. To differentiate its mission from the newly established GRIs, KIST decided to focus on long-termed package deal contract research projects that were fully funded by the government. KIST and other GRIs led Korean R&D during the 1970s, when industries and uni-versities did not possess the capability and will for it. The early history of KIST demonstrates the effectiveness of the establishment of a research institute in bridg-ing the technology gap in a developing country where its research system is bleak. In the early stages, it is necessary to set roles for the research institutes in a way that suits the actual domestic environment and the contract research system can be an effectual option for the institute.
