Civil Engineering Reference
In-Depth Information
3.1.1 Degree of Industrial Development
In selecting regional strategic industries, not only current situations and features of
the regional economy but also growth potential and desirable structure of the
future economy for that region should be analyzed. The key elements to be con-
sidered in the selection of strategic industries are degree of industrial development,
growth potential, and spread effect. Industries are accumulated and when they
enjoy relative superior locations interactions among them happen frequently. The
degree of industrial development is an important criterion when selecting a stra-
tegic industry from among many existing industries in a certain region (KIET
2004
). Industrial clusters are distinguished from others when its economic base has
been well structured for a long time and when those industries become repre-
sentative of the region. Degree of industrial development is analyzed by the degree
of industrial accumulation and location quotients.
3.1.2 Growth Potential
The focus on degree of industrial development is tuned to current and past situ-
ations but growth potential is more future-focused. Since knowledge-based
industries are considered a future substitute for existing major industry, an element
of growth potential should be a criterion when selecting strategic industries in the
knowledge-based economy. Growth potential could be analyzed through the
evaluation of growth capability in international and domestic economy, techno-
logical innovation capacity and the evaluation of political will from central and
local governments (Park
2005
).
3.1.3 Spread Effect
Spread effect is analyzed by regional input-output analysis. Since regional eco-
nomic situations are analyzed as a whole or a part through the input-output
analysis, it is a useful tool for analyzing regional economic structure. An input-
output analysis tool makes macro and microanalysis possible: e.g., such as pre-
dicting production, employment, and its importance as consumption, investment,
and export are being changed (Choi
1996
).
3.2 Measures of Selecting Strategic Industries
3.2.1 Degree of Industrial Concentration
Degree of industrial concentration is measured in two parts separately such as the
area of major industrial base and area of knowledge-based industrial base because
of limits in statistics. Major industrial base is analyzed in terms of degree of
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