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

Kyunam Kim, Jung-Kyu Jung and Jae Young Choi
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Kyunam Kim: Department of Intellectual Property, College of Economics & Business Administration, Kyonggi University, 154-42 Gwanggyosan-Ro, Yeongtong-Gu, Suwon-Si 16227, South Korea
Jung-Kyu Jung: Korea Institute of Science & Technology Evaluation and Planning (KISTEP), 60 Mabang-Ro, Seocho-Gu, Seoul 06775, South Korea
Jae Young Choi: Graduate School of Technology & Innovation Management, Hanyang University, 222 Wangsimni-ro, Seongdong-go, Seoul 04763, South Korea

Sustainability, 2016, vol. 8, issue 7, 1-19

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.

Keywords: input-output analysis; smart city; economic impact; technology convergence; Internet of Things (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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