Civil Engineering Reference
In-Depth Information
emphasized in strategic industries. Growth rate of an industry in the market is the
most important indicator for knowledge-based manufacturing industries.
The second indicator is profitability, which is decided after input and value are
decided and is divided into three categories such as rank high, medium, and low.
Since export promotion industrial policy in Korea has reached a limit, it is nec-
essary that the portion of manufacturing industry should be decreased and
knowledge-based service industry should be fostered. Since knowledge-based
service industry has a strong link to information, customer's needs should be
surveyed to gain higher value-added in this industry.
3.2.5 Capability in Technological Innovation
Existence of RRC (Regional Research Center), TIC (Technology and Information
Center), and TP (Technology Park) in a region is important because capability in
technological innovation is a critical factor in knowledge-driven economy now and
in the future.
3.2.6 Government Intention
It is expected that regional competitive power would be decided by superiority
among regions in terms of world economy in the future. We are now living in a
world where firms choose a county and a region for their profit maximization. Due
to this circumstance public-private partnership is needed to gain a better position
in the competition.
Government intention is important in selecting strategic industries. Growth
potential, synergy effect among industries, and degree of contribution to the
regional economy are all critical elements in government intention.
3.2.7 Multiplier and Linkage Effect
Multiplier and linkage effect is the most frequently used concept in input-output
analysis, and makes economic prediction possible. Industrial linkage effect is
divided into two types such as forward linkage and backward linkage. In con-
nection with the process of industrialization in countries undertaking to industri-
alize,
two
sequences
held
promise
for
generating
special
pressures
toward
investment.
First, an existing industrial operation would make for pressures toward the
domestic manufacture of this input and eventually toward a domestic capital goods
industry. This dynamic is called backward linkage, since the direction of the
stimulus toward further investment flows from the finished article back toward the
semi-processed or raw materials from which it is made or toward the machines
which help make it.
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