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governments or local industries have become a main body of national competition.
Therefore, fostering regional strategic industries is not only important to local
governments, but also important to a central government in terms of building a
new paradigm of continuous national development.
The aim of this chapter is selecting strategic industries and suggesting some
recommendations to foster regional strategic industries in Daejeon Metropolitan
City.
2 Concept of Industrial Policy, Strategic Industries,
and their Goals
2.1 Concept of Industrial Policy
There are many definitions of industrial policy in broad or narrow scope. We could
define from the following that an industrial policy is a governmental intention to
strongly support a few strategic or sunrise industries in the field of finance or
administration in order to enhance national competitiveness.
Adams and Lawrence (
1998
) define industrial policy as an obvious national
policy that enhances potential supply capacity in the national economy through an
increase of resources, labor, and capital accumulation for industrial development,
and through revision of mobility in production elements and adaptation capability.
Johnson (
2005
) argues that industrial policy is a governmental intention to
adopt or abandon a few various industries in order to attain a superior position in
international competition.
Ryutaro (
1991
) defines industrial policy as a policy that increases the welfare
level of a national economy by governmental intervention in industrial restruc-
turing or resource redistribution when there is a certain type of market failure in
distributing income and resources.
Lee (
1999
) asserts that industrial policy is a governmental intervention in
production, investment, and transactions of goods in a specific industry or any
industry through the backup, regulation, and adjustment of national economy in
order to enhance economic growth or national competitive power.
2.2 Definition and Goal of Strategic Industries
2.2.1 Definition of Strategic Industries
''Strategic industry'' means an industry that is essential for promoting growth
of the locality in which the industry is located (Financial Times, LEXICON).
Strategic industries are those that have a best location or high growth potential in
the future (Park
2005
). Best location is evaluated in terms of predominance in a
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