Impact of the Smart City Industry on the Korean National Economy: Input-Output Analysis

Abstract

Abstract:The characteristics of the smart city industry and its effects on the national economy of Korea are investigated using input-output analysis. The definition and industrial classification of a smart city are established using the Delphi technique for experts in various fields, from information and communication technologies (ICT) to governmental policies for urban matters. The results of the analysis, including the production, value added and employment induction effects, show that the smart city industry has intermediate characteristics between ICT and urban construction industries, indicating that acquisition of the competitive edge of both the ICT and construction industries is the key to the success of the smart city industry. The crucial industries related to the smart city industry are identified based on an analysis of the forward and backward linkage effects, the results of which suggest the importance of the relevant service industries. The economic effects on the national economy induced by the governmental program for smart city demonstration are estimated using input-output analysis results. Overall, the results of this study indicate that facilitation of the smart city industry plays a key role not only in the sustainable city, but also in the growth of the national economy.

Feasibility of the Fintech Industry as an Innovation Platform for Sustainable Economic Growth in Korea

“…Kim et al (2016) argued smart city which is one of IT convergence related industry and analyzed demand inducement model and industry linkage effect. They discovered that smart city not only allows sustainable city but also takes an important role in nation's economic growth level [35]. Kim et al (2017) used DDM, SDM and Leontief price Model, as well as the industry linkage effect to analyze the effect of U-healthcare industry that affects Korean economy [34].…”

Smart Cities as Organizational Fields: A Framework for Mapping Sustainability-Enabling Configurations

“…All these aspects of the emerging smart city phenomenon are consistent with institutional theories; quite surprisingly, however, institutional theories have not been adopted in smart city studies so far. This encourages us to investigate the smart city phenomenon through the lens of institutional logics and organizational fields, rather than other traditional theoretical approaches such as the organizational populations, network organizations or industrial sector views (see for example [77]). …”

Regional Smart City Development Focus: The South Korean National Strategic Smart City Program

“…Smart city cases in developed countries are different for each region [17], and studies focusing on developing countries have recently shown that smart city development in China [18]- [22], the Middle East [23], [24], and Southeast Asia [25], [26] have adapted various technologies for their new town developments. In addition, research has been conducted in Singapore [25], Australia [27], and South Korea [28], as well as in developing countries such as India [29], [30], some African nations [31], Brazil [32], and others [33]. Such countries are usually in the process of building new cities.…”