The capability‐enhancing role of government‐driven industrial districts for new technology‐based firms in South Korea

Abstract Government‐driven industrial clusters have attracted considerable attention from academic research as well as practical fields, mainly because of their contributions to regional economic growth and sustainable innovation performance. This article investigates the impact of government‐driven...

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Main Authors: Yuri Jo, Won Young Chung, Daeho Lee
Format: Article
Language:English
Published: Wiley 2020-09-01
Series:Asia & the Pacific Policy Studies
Subjects:
Online Access:https://doi.org/10.1002/app5.309
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author Yuri Jo
Won Young Chung
Daeho Lee
author_facet Yuri Jo
Won Young Chung
Daeho Lee
author_sort Yuri Jo
collection DOAJ
description Abstract Government‐driven industrial clusters have attracted considerable attention from academic research as well as practical fields, mainly because of their contributions to regional economic growth and sustainable innovation performance. This article investigates the impact of government‐driven industrial districts on the efficiency of new technology‐based firms in information and communications technology industries. Using a meta‐frontier analysis with a unique Korean start‐up dataset, we find that the government's provision of industrial districts increases firm efficiency level compared with that of others outside the districts. Specifically, being located in industrial districts not only improves the efficiency of individual start‐ups but also positively affects the maximum efficiency levels that firms can achieve. Our findings suggest that locational support by public administration, such as utility infrastructure, tax benefits and inter‐firm informal network opportunities, enhances firms' dynamic capability to search for and combine resources to create new markets and innovations, especially for newly established technology firms.
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spelling doaj.art-61b7a1810efa4bb5b56f7c76ec0da7cb2022-12-22T00:44:50ZengWileyAsia & the Pacific Policy Studies2050-26802020-09-017330632110.1002/app5.309The capability‐enhancing role of government‐driven industrial districts for new technology‐based firms in South KoreaYuri Jo0Won Young Chung1Daeho Lee2Department of ICT Strategy Research Korea Information Society Development Institute Chungcheongbuk‐do Republic of KoreaDepartment of Interaction Science Sungkyunkwan University Seoul Republic of KoreaDepartment of Interaction Science Sungkyunkwan University Seoul Republic of KoreaAbstract Government‐driven industrial clusters have attracted considerable attention from academic research as well as practical fields, mainly because of their contributions to regional economic growth and sustainable innovation performance. This article investigates the impact of government‐driven industrial districts on the efficiency of new technology‐based firms in information and communications technology industries. Using a meta‐frontier analysis with a unique Korean start‐up dataset, we find that the government's provision of industrial districts increases firm efficiency level compared with that of others outside the districts. Specifically, being located in industrial districts not only improves the efficiency of individual start‐ups but also positively affects the maximum efficiency levels that firms can achieve. Our findings suggest that locational support by public administration, such as utility infrastructure, tax benefits and inter‐firm informal network opportunities, enhances firms' dynamic capability to search for and combine resources to create new markets and innovations, especially for newly established technology firms.https://doi.org/10.1002/app5.309government‐driven industrial districtsinformation and communications technologymeta‐frontier analysisstart‐upstechnical efficiency
spellingShingle Yuri Jo
Won Young Chung
Daeho Lee
The capability‐enhancing role of government‐driven industrial districts for new technology‐based firms in South Korea
Asia & the Pacific Policy Studies
government‐driven industrial districts
information and communications technology
meta‐frontier analysis
start‐ups
technical efficiency
title The capability‐enhancing role of government‐driven industrial districts for new technology‐based firms in South Korea
title_full The capability‐enhancing role of government‐driven industrial districts for new technology‐based firms in South Korea
title_fullStr The capability‐enhancing role of government‐driven industrial districts for new technology‐based firms in South Korea
title_full_unstemmed The capability‐enhancing role of government‐driven industrial districts for new technology‐based firms in South Korea
title_short The capability‐enhancing role of government‐driven industrial districts for new technology‐based firms in South Korea
title_sort capability enhancing role of government driven industrial districts for new technology based firms in south korea
topic government‐driven industrial districts
information and communications technology
meta‐frontier analysis
start‐ups
technical efficiency
url https://doi.org/10.1002/app5.309
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