Expanded Summary 

The article deals with the peculiarities of the creation and formation of the innovation system of the Republic of Korea and its development stages of 1962-2016. The success that the country has achieved in just a few decades and is known by the name of the "Miracle of Korea" is the immediate result of the innovative system functioning in the country, the history of creation and development of with is very interesting and completely different from other economically developed countries. This difference gives the ability to clearly see how much progress can be achieved, when the state, business and science are closely cooperating and trying to duplicate the efforts of formation of the national innovation system and the the successful development even in the unfavorable starting conditions (scarce resource potential, the hardest competition, technological backwardnees). Until the 60s of the last century, the country was in the ranks of states with agrarian economies, the GDP per capita was $103, the share of industry share in GDP was 15% and the volume of goods import exceeded 7 times.

The gradual transformation of the economy into an innovative basis started in the 60s of XX century. In spite of the loyalty to capitalism and free market, the course has been undertaken to create large monopolies under their own patronage, as they were likely to have an opportunity to make an innovative leap and as the country would be developed in a sharply expressed planned economy. The state has created a solid foundation for the innovative breakthrough in the conditions seven-year plan and strict control of its implementation.

Cheboles strong attitudes towards the state monopoly of financing led to total corruption that was expressed by the strongest crisis (1997-1998), from which the country managed to come out by tightening state regulation, owing to loans from the US, various reforms and measures.

 Since 1999, within the bounds of policy of overcoming the crisis results, a wide-ranging program of structural transformations, which was originally a local project, was oriented not just as much as on transition to new technologies, as on obtaining new resources and their use connected with the stabilization of national economy and stable increase of the local economy the specializing some sectors of industry in the country's major cities. Then it joined nine additional participants and the project was named "4 + 9".

On the basis of the formulated tasks of economic reform, the leadership of the country has identified a new industrial development strategy and its realization has been implemented in several stages.

The Innovative Strategy of the Republic of Korea, in the condition of the lack of its own technological capability, was originally based on the technology of foreign sources and its dissemination within the country, simultaneously developing its own innovative potential through effective use, utilization and perfection of imported technologies.

The peculiarity of  its innovative strategy was that the country does not only try attract foreign direct investment (FDI), but contradicted it as the population's attitude towards transnational companies TNC was negative. Therefore, it has not had a significant effect on the development of the country's economy due to its small share in foreign investments (4%). It is noteworthy that foreign investments in the country were mainly credited, while technologies were predominantly non-formal.

Creation of own scientific-technological potential.  The country achieved the required level of education in 2003, when the general literacy of the population rose to 98% and was on the third place in the world after Canada and the US.

With the development of its own base of scientific research and technology, the Ministry of Science and Technology of Korea, Institute of Science and Technology and 20 scientific institutes supported by government. In 1974, the construction of the scientific town Deuduk was begun, which is currently composed of many state and private scientific institutions. In  2007 total investment in science and technology development was 38.6 billion US dollars, which was 3.77% of GDP.

The Basic Plans for Development of Science and Technology (2003-2007, 2008-2012 and 2013-2017) were formulated by the law adopted in 2001. These plans were divided into three stages and focused on specific goals, towards the quality of technology, quality of life and environment, as well as on solving tasks related to information and biotechnology.

The global economic crisis of 2008-2010 has substantially impeded the country's innovative and economic development. Despite this, he managed to overcome the results of the crisis and managed to create 200,000 new jobs in 2009 through the development of 4 major water resources and reconstruction programs in the country.

Conclusion. In conclusion, we can say that as a result of the realization of the country's innovative transformations, South Korea became one of the world's leaders by producing a number of high-tech products such as automobile and shipbuilding, electronics and household appliances, steal processing etc. The "miracle of the South Korea" was conditioned by a combination of factors such as:

• The state's defining and effective role in the implementation of reforms, especially in the creation and development of an innovative system that not only regulates the relations arising within the frames of the, but it itself is its direct participant;

• Close cooperation between state, business and scientific circles;

• The important role of mascots in the creation and formulation of, as jast they do the new technology and commercialization;

• Public education, cheap and qualified workers;

• Created Institutional basis;

• Liberal patent legislation;

• Adoption of foreign advanced technologies;

• Large expenditures on science and education as a whole and in particular, scientific-research and experimental works (R&D);

• Favorable international climate for business activity.

It should be noted that despite the great success of some scholars, consider (D. Rodríguez, Professor of Economics at Harvard University) South Korea has almost achieved its "development ceiling" and new successes are no longer expected. However, this opinion is not yet confirmed, according to the Global Innovative Index (GII) - in the Republic of Korea in 2016 this indicator was not deteriorated in comparison with the previous year, but was improved. If in 2015 it was in the 14th and in the region in the third place in the world (Asia and Oceania) - in 2016 moved in the 11th and 2nd places respectively. However, the Republic of Korea is likely to have problems with such issues as:

• Low levels of birth and population aging;

• The appearance of competitors with better technologies in the world market;

• Problems in supply of raw materials.