STI Policy Review

Science & Technology Policy Institute (과학기술정책연구원)
권호 표지
DOI QR코드

DOI QR Code

Strategic Considerations for Development of the ICT Industry in Korea: Exploratory Research Using Input-Output Analysis

  • Published : 2016.10.31
Download PDF
⟨ Previous Next ⟩

Abstract

This study compares the economic impacts among ICT sectors and derives strategic considerations for development of the ICT industry in Korea. Prior to analysis, this study classified ICT industry into four sectors: ICT equipment, components, service, and SW/system. This study conducted Input-Output Analysis on the four ICT sectors. An Input-Output Analysis is a quantitative economic technique that represents the direct and indirect interdependencies between different industries of a national economy. Features of each ICT sector were observed in the results. Within the ICT equipment sector, production is decreasing, import dependence is increasing, and employment size is very low, relative to the overall ICT industry. The component sector accounts for the over half of the output and value added of the ICT industry, but domestic production has recently declined. The subsector experienced decreasing production and increasing imports relative to the other ICT subsectors. In the service sector, output is small but its production and employment impact is very high. The fourth sector, ICT SW/system, has very low impact on production but high impact on employment. These features suggest two strategies to develop the ICT industry in Korea. First, the ICT component and service sectors should be promoted to stimulate growth of the national economy. Second, to encourage employment growth, policies should promote the ICT SW/system and service sectors.

Keywords

References

  1. Bank of Korea. (2012). 2010 Input-Output Table. Seoul: Bank of Korea.
  2. Bank of Korea. (2013). 2011 Input-Output Table. Seoul: Bank of Korea.
  3. Bank of Korea. (2014). 2012 Input-Output Table. Seoul: Bank of Korea.
  4. Bank of Korea. (2015). 2013 Input-Output Table. Seoul: Bank of Korea.
  5. Colecchia , A. & Schreyer , P. (2002). ICT investment and economic growth in the 1990s: Is the United States a unique case? A comparative study of nine OECD countries. Review of Economic Dynamics, 5(2), 408-442. https://doi.org/10.1006/redy.2002.0170
  6. Etro, F. (2009). The economic impact of cloud computing on business creation, employment and output in Europe. Review of Business and Economics, 54(2), 179-208.
  7. KAIT & KEA. (2015). 2014 Information and Communication Technology Survey. Seoul: Korea Electronics Association.
  8. Kang, S. & Cho., S. (2013). Economic impact of emotional ICT industry on Korean economy using Input- Output Analysis. Review of Business and Economics, 26(4), 1739-1764.
  9. Koutroumpis, P. (2009). The economic impact of broadband on growth: A simultaneous approach. Telecommunications policy, 33(9), 471-485. https://doi.org/10.1016/j.telpol.2009.07.004
  10. Lee, J., & Kwak. S. (2012). An analysis on the economic impacts of the software industry. Review of business and Economics, 25(5), 3431-3450.
  11. Miller, R. E. & Blair, P. D. (2009). Input-output analysis: foundations and extensions. Cambridge: Cambridge University Press.
  12. MSIP & KEA. (2015). 2013 information and communication technology statistics. Gwacheon: Ministry of Science, ICT and Future Planning.
  13. Organization for Economic Cooperation and Development (OECD). (2008). Information economy productions based on the cen tral product classification (version 2) (OECD Digital Economy Papers, No. 158). Paris: OECD Publishing. DOI: http://dx.doi.org/10.1787/222222056845
  14. Organization for Economic Cooperation and Development (OECD). (2015). Input-output tables. Retrieved from http://www.oecd.org/trade/input-outputtables.htm
  15. United Nations. (2008). International standard industrial classification of all economic activities (UN) (ISIC), Rev. 4. Retrieved from http://unstats.un.org/unsd/publication/seriesM/seriesm_4rev4e.pdf